All countries participating in the Trans-Pacific Partnership multilateral trade negotiations, with the exception of Japan, agreed to pursue sectoral talks in Washington from Friday to Monday with an eye toward setting a tariff liberalization rate of more than 95 percent, according to informed sources.

The tariff liberalization rate indicates the percentage of imported items on which each member of the multilateral economic framework agrees to eliminate tariffs.

The Washington talks are focused specifically on the elimination of tariffs. Japan intends to maintain its proposal to set a tariff liberalization rate in the range of 80 to 89 percent, though it could face pressure from other TPP members to remove tariffs from more items.

The TPP members aim to reach a general agreement on the TPP accord at a summit meeting scheduled for Oct. 8 in Bali, Indonesia, and to conclude the negotiations within the year.

Regarding the tariff rate, one source familiar with the TPP negotiations said, “Ninety-five percent is not too high for countries other than Japan.” For example, the tariff liberalization rates set in the free trade agreements between Australia and the United States and between Chile and the United States are more than 96 percent.

Although the TPP aims in principle at a 100 percent tariff removal, the reality is that many of the negotiating countries want specific items excluded, such as certain farm and textile products, mainly to protect domestic industries. Some, thus, expect the negotiations to ultimately settle on a tariff liberalization rate of about 98 percent.

Japan had proposed to the United States as of Wednesday that it would eliminate tariffs on 80 to 89 percent of imported products. This rate, which was set to maintain tariffs on five key categories of farm products, such as rice, is on par with that presented by other participating countries.

From now on, the TPP members will hold in-depth, one-on-one negotiations on tariffs. After Japan proposed the low tariff liberalization rate, some members called for a higher rate. Japan is expected to face further pressure from other TPP members.

Source: Yomiuri Shimbun

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