ID :
158052
Tue, 01/25/2011 - 02:54
Auther :

Japan Prem. Kan Pledges Action for Trade Liberalization

Tokyo, Jan. 24 (Jiji Press)--Japan's Prime Minister Naoto Kan, in a policy speech before the Diet on Monday, expressed his determination to drastically open up the country's markets, while asking the Japanese public to share the cost of reforming the nation's social security system, including through a hike in the consumption tax rate.
At a plenary meeting of the House of Representatives, the lower chamber of the Diet that opened for a regular session the same day, Kan also called for cooperation from opposition parties in discussions on these key themes in the country's divided parliament.
At the beginning of his speech, Kan stressed the need to achieve the Heisei-era opening of Japan through the promotion of bilateral and regional economic relations, a society in which human suffering is reduced to a minimum and a politics that would work to correct injustice in the country.
The year 2011 should be a year for Japan to make decisions and take actions toward opening up the country's markets, Kan stressed.
Noting that Japan largely lags behind global trends of forging economic partnerships, Kan said he will make a final decision in June on whether Japan should join negotiations on the Trans-Pacific Partnership for its possible participation in the free trade pact.
The TPP was launched by Brunei, Chile, New Zealand and Singapore in 2006, and five other countries--Australia, Malaysia, Peru, the United States and Vietnam--are in talks to join the pact.
To minimize human suffering in the Japanese society, Kan underlined the need to establish a solid social security system.
Noting that the government's efforts to secure resources by retrenching public works projects and cutting wasteful spending have been pushed to the limit, Kan said that the government will inevitably have to ask the public to accept a certain level of increase in their financial burden in order to achieve the reforms of the country's social security system.
The government will strive to draw up in June a blueprint for the social security overhaul and a basic policy on drastic reforms of the nation's tax system, including a possible hike in the consumption tax rate from the current 5 pct, Kan said.
All ruling and opposition lawmakers are responsible for achieving the reform goals, Kan said. Kan added that he will work hard to cut the number of parliamentary seats, pointing out that lawmakers also have to pay a price.
While stopping short of referring to the funding scandal of Ichiro Ozawa, former chief of the ruling Democratic Party of Japan, Kan said he will come up with convincing political reform measures, possibly including a ban on political donations from companies and other organizations.
Ozawa is set to be indicted shortly for his alleged role in the scandal involving his fund management body Rikuzankai.
On the diplomatic front, the prime minister said he wants to unveil a vision of the Japan-U.S. alliance for the 21st century during his expected visit to the United States in spring this year.
Kan said he will strive to put into action a Japan-U.S. accord to relocate the U.S. Marine Corps' Futenma air station in Ginowan, Okinawa Prefecture, to the Henoko coastal district of Nago in the same southernmost Japan prefecture, by sincerely explaining the plan to the people of Okinawa in order to gain their understanding. Okinawa strongly opposes relocating the Futenma base within the prefecture.
Kan called on China to play a constructive role as a member of the international community after the Sino-Japanese relationship turned sour following the collision between a Chinese trawler and Japan Coast Guard ships near disputed East China Sea islands in September 2010.
In concluding remarks, Kan asked the opposition camp for constructive discussions with the ruling camp on the advisability of Japan joining the TPP, the comprehensive reforms of the tax and social security systems, and other key challenges facing Japan in the just-launched regular parliamentary session.
The DPJ took power from the long-ruling Liberal Democratic Party in September 2009 following its landslide victory in the preceding month's Lower House election.
But the DPJ-led ruling coalition lost its majority in the House of Councillors, the upper chamber, in the July 2010 election, causing Kan to face a divided parliament.

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