Japan wins approval from member countries to join Trans-Pacific trade talks

Sat Apr 20, 2013 8:58am EDT
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By Kaori Kaneko

TOKYO (Reuters) - Japan won approval from participating countries to join talks on a U.S.-led Asia Pacific free trade agreement, central to Prime Minister Shinzo Abe's plans to open the economy to more competition and revive growth.

The formal invitation for Tokyo to join the negotiations was extended at a meeting of members of the Trans-Pacific Partnership (TPP) on Saturday on the sidelines of the Asia-Pacific Economic Cooperation gathering in Surabaya, Indonesia, according to a joint statement.

Japan will join 11 nations already in talks on the TPP: the United States, Canada, Mexico, Peru, Chile, Vietnam, Malaysia, Singapore, Brunei, Australia and New Zealand. Members hope to reach a deal by the end of this year.

With the world's third-largest economy on board, the final TPP pact would cover nearly 40 percent of global economic output and one-third of all world trade.

Abe has prescribed a three-part economic plan of hyper-easy monetary policy, big fiscal spending and steps to spur longer-term growth, including deregulation and government backing to beat deflation and engineer lasting recovery. Joining the TPP talks is seen as the first, key element of that growth strategy.

"Japan's participation in the negotiation will underscore the economic significance of TPP and its promise as a pathway toward a Free Trade Area of the Asia Pacific," said the joint statement by trade ministers of the TPP member nations.

Japan hopes to participate in the July round of negotiations, which would require the White House to quickly give Congress 90-day notice of its intention to begin trade talks with Tokyo.

A 17th round of talks is currently scheduled for May in Peru. The dates and location of the 18th round in July have not yet been announced.   Continued...

Japan's Prime Minister Shinzo Abe speaks next to a map showing participating countries in rule-making negotiations for the Trans-Pacific Partnership (TPP) during a news conference at his official residence in Tokyo March 15, 2013. REUTERS/Toru Hanai