INTERVIEW: Japan`s Kaieda Says TPP Participation Top Priority

Tokyo, Jan. 18 (Jiji Press)--Japan's new Minister of Economy, Trade
and Industry Banri Kaieda has said that one of his top priorities is to
realize Japan's participation in the Trans-Pacific Partnership free trade
agreement.
In an interview, Kaieda also said that he will aim to promote
exports of Japan's infrastructure technologies and focus on measures to
support small companies.
Asked about the benefits of Japan joining the TPP, he said that
Japan, whose population is aging, needs to capitalize on the strong growth
of the Asia-Pacific region for its own economic expansion.
The minister said that he regards the TPP as a comprehensive
framework that would help achieve this objective.
The United States, Japan's most important trading partner, is eager
to join the TPP to boost its economic cooperation with the Asia-Pacific
region, Kaieda noted. Japan should keeping a keen eye on the U.S. intention,
he added.
Kaieda, who assumed his current post in Prime Minister Naoto Kan's
reshuffled cabinet launched Friday, said he intends to demonstrate Japan's
eagerness to open up its markets to the rest of the world if he would be
able to attend an annual meeting of the World Economic Forum to be held in
the Swiss resort of Davos later this month.
Japanese farmers are opposed to Japan joining the trade
liberalization treaty.
But Kaieda said Japan's possible participation in the TPP is not
designed to sell Japanese industrial products to the world at the expense of
the domestic agricultural sector.
He added that he wants Japan's agriculture, forestry and fisheries
sectors to reform themselves by regarding Japan's TPP participation as a
good opportunity.
Measures to revive Japan's farm sector can be linked with steps to
revitalize regional economies and tourism, he said, adding he wants to
support exports of Japanese farm produce.
The TPP was launched by Brunei, Chile, New Zealand and Singapore in
2006. Five other countries--Australia, Malaysia, Peru, the United States and
Vietnam--are currently negotiating to join the accord.
Noting that the nine countries are negotiating at a very high
speed, Kaieda said that a possible deadline for Japan to make a final
decision on whether to join the TPP talks will be June.
Elsewhere, Kaieda said that the Japanese government's plan to cut
the nation's effective corporate tax rate by 5 percentage points is
insufficient, pointing out that the government has to examine whether
Japanese companies will use the saved money to increase hiring and
investment.
To ensure stable supplies of rare earths, Japan needs to procure
such minerals from not only China but other countries like Mongolia, Kaieda
said, adding that Japan should beef up rare earth recycling.