Japan urges Obama to step up involvement in TPP deal

TOKYO — Japan’s Economy Minister has called on United States President Barack Obama to ramp up his lobbying of Democrats to secure congressional authority for the Trans-Pacific Partnership (TPP), as the mammoth trade deal approaches a make-or-break deadline in the next few months.

The rare direct appeal by Mr Akira Amari, the Japanese minister responsible for the talks, shows how nerves on both sides of the Pacific are fraying as the effective deadline for a deal draws close.

“I’ve always thought it was important that President Obama not leave this in the hands of others and that he should make direct efforts to convince and persuade,” said Mr Amari in an interview with the Financial Times.

“We are getting into real time constraints, but there’s still a good possibility of a deal with President Obama, so I’m optimistic,” said Mr Amari. “I’ve heard the President has started making efforts to persuade Democrats and that gives me hope.”

Failure of the TPP would be a huge blow to governments in the US and Japan. For Mr Obama, it is one of the few measures he may be able to get past a Republican Congress; while for Japanese Prime Minister Shinzo Abe, the TPP is both a goal in itself and a tool to force deregulation of domestic sectors such as agriculture.

The TPP would liberalise trade among 12 Pacific nations, including Japan and the US, covering about 40 per cent of global output. Negotiations have been under way for almost seven years.

But to close the deal, Mr Obama needs to secure a Trade Promotion Authority (TPA), a fast-track route through Congress.

“Once a TPA Bill is submitted to Congress, then we can enter a resolution mode on some of the outstanding issues between Japan and the United States,” said Mr Amari. He said the current best-case scenario is to reach a basic agreement in May, with the outlines visible when Mr Abe visits Washington on April 28.

Negotiators have signalled that while there are outstanding issues, a deal on the substance is within reach. However, there is a narrow window for the TPA, which closes when the US Congress leaves town at the end of July.

After that, US officials fear a vacuum before the US presidential campaigns kick into high gear next year.

Even though the Republicans control both houses of Congress and strongly back free trade in principle, opposition from union-backed Democrats and deep antipathy between Mr Obama and congressional Republicans make it hard to get the TPA to the finish line.

In the Senate, the hurdle is Oregon Senator Ron Wyden, who as ranking Democrat on the finance committee is essential to passing a bipartisan TPA Bill. In the House, the task is to fashion a centrist majority. A significant number of left-wing Democrats are likely to vote no, as are some isolationist Republicans, who are loath to give Mr Obama any kind of victory.

“I’ve met the leaders of the Republican party and what has come across is that, even with a Democratic President, they recognise the importance of the TPP,” said Mr Amari.

THE FINANCIAL TIMES