John Armstrong: Public support key to Japan deal

Trade Minister Tim Groser. Photo / Mark Mitchell

New Zealand ministers have their fingers crossed that a poll of the Japanese public will back Tokyo's plans to join a Pacific-wide free trade agreement.

The Japanese Cabinet formally approved a new trade policy on Tuesday which will see Japan "gathering further information" before "initiating consultations" with the nine-member Trans Pacific Partnership (TPP), which includes New Zealand and the United States.

Despite the cautionary tone of that statement, Trade Minister Tim Groser last night described the Cabinet's position as the most significant development in Japanese trade policy in the last 25 years.

The refusal of Prime Minister Naoto Kan to be more specific reflects deep concern within his own party about the inevitable backlash from Japan's powerful agricultural lobby if he moves too hastily.

It is understood foreign and trade ministers attending their joint annual Apec meeting ahead of this weekend's leaders summit gave their hosts every encouragement to stick with the fresh approach.

However, there was a consensus that things could not be rushed and that a full public debate had to take place at a domestic level in Japan before that country made any moves on the TPP front.

Japan's highly-inefficient farmers have long been sheltered behind high tariff walls, effectively blocking foreign exports, particularly rice and dairy products.

However, big business in Japan is firmly behind the Government amidst feelings that Japan risks falling behind the play unless it secures more free trade deals to safeguard its industrial exports.

A poll in the Daily Yomiuri newspaper had more than 60 per cent of respondents favouring Japan joining the TPP and only 18 per cent against.

The Japanese Cabinet decision was deliberately timed in advance of yesterday's meeting of Apec trade and foreign ministers in the port city of Yokohama.

Some kind of endorsement of the TPP process by Japan was seen as crucial to the success of that meeting which will today issue a communique which is expected to stress the role of the TPP talks as the genesis of an over-arching free trade agreement spanning the Pacific.