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Senators from car states ask Obama to keep Japan out of TPP negotiations

24/07/2012    39

WASHINGTON — Ten U.S. senators have urged President Barack Obama not to agree to Japan's participation in negotiations on the Trans-Pacific Partnership due to the potential negative impact on the American automotive industry, according to their recent letter to the president.

"As senators representing states in which the U.S. automotive industry has a strong presence, we are particularly worried about the impact that Japan's inclusion will have on American carmakers and their workers," the lawmakers said.

"We believe it would be a mistake to invite Japan to join the TPP at this time," they said.

Nine nations are holding the negotiations with the aim of crafting an ambitious market-opening accord. Japan, Canada and Mexico expressed interest in taking part last November.

Canada and Mexico got the green light in late June, leaving Japan the only aspirant still outside of the U.S.-led initiative.

Although Japan has been a close friend and important ally to the United States, the bilateral trade relationship "remains complicated and unbalanced," the 10 Democratic senators said. "This is especially acute in the auto sector."

The senators said American automakers "face a number of barriers when it comes to access to Japanese markets," while their Japanese rivals "have significant headway into our domestic markets."

"The history of U.S.-Japanese trade relations gives us little confidence that American negotiators can achieve an agreement that would create a truly level playing field between the two countries in the short time frame of TPP negotiations," they added.

Japanese automakers have dismissed such claims from the U.S., saying the competition in Japan is fair.

July 22, 2012

Source: The Japan Times