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The Trans-Pacific Partnership:       Japanese Strategic Diplomacy or Chinese                    Containment     http://lcb...
Introduction                                              • Relationship between                                          ...
Japanese Policy                 •   Firstly, when the Asia-Pacific or the Indo-                     Pacific region becomes...
Focus of Discussion:             TPP and Japan• Describe the TTP   – from its genesis as an effort by Brunei, Chile, New Z...
The TPP                                                     • Origins                                                     ...
TPP Scope•   (1) regulation of competition (antitrust)    •   (10) investment (transforming bi-lateral    issues,         ...
TPP Beyond Economic Policies              • Criticized as opaque              • Little civil society                engage...
Too Good to Resist• On March 15, 2013 Prime Minister Abe, in what was  described as an impassioned televised address, anno...
Strategic Implications: Japan• TPP as a counterweight to recent aggressive Chinese efforts to take the  lead in determinin...
Strategic Implications: U.S.• TPP basis for coordinating U.S. trade policies in Asia  and Latin America.• Building the reg...
Implications for China                                                •   On a strategic level, Washington wants          ...
Bottom Line:Polycentricity and Competition• Trade policy and the regulatory environment will continue to develop as  compl...
And Japan in the Middle            • For Japan this may represent              containment that protects its              ...
The shadow of 1914 falls over the Pacific                 THANKShttp://www.ft.com/intl/cms/s/0/e29e200a-6ebb-11e2-9ded-001...
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Tpp japan china 3 2013 ppt

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The Trans-Pacific Partnership:
Japanese Strategic Diplomacy or Chinese Containment
Presentation to Japan America Society March 2013

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Tpp japan china 3 2013 ppt

  1. 1. The Trans-Pacific Partnership: Japanese Strategic Diplomacy or Chinese Containment http://lcbackerblog.blogspot.com/2013/03/presentation-to-japan-america- society.htmlLarry Catá BackerW. Richard and Mary Eshelman Faculty Scholar & Professor of Law, Professor of InternationalAffairs; 2012-13 Chair University Faculty SenatePennsylvania State University • Presentation to The Japan America Society of Pennsylvania, Pittsburgh, PA • March 21, 2013
  2. 2. Introduction • Relationship between China and Japan – Territorial claims – Trade policy – Status and prestige – Two are linkedhttp://shadow.foreignpolicy.com/posts/2010/09/24/washington_take_note_the_era_of_gre at_power_politics_is_far_from_over_in_asia 2
  3. 3. Japanese Policy • Firstly, when the Asia-Pacific or the Indo- Pacific region becomes more and more prosperous, Japan must remain a leading promoter of rules. By rules, I mean those for trade, investment, intellectual property, labor, environment and the like. • Secondly, Japan must continue to be a guardian of the global commons, like the maritime commons, open enough to benefit everyone. • • Japans aspirations being such, thirdly, Japan must work even more closely with the U.S., Korea, Australia and other like- minded democracies throughout theShinzo Abe region 3
  4. 4. Focus of Discussion: TPP and Japan• Describe the TTP – from its genesis as an effort by Brunei, Chile, New Zealand and Singapore to better integrate their economic relationships – into current efforts to create a powerful free trade area of the Pacific that excludes China.• I will then suggest some important strategic considerations that may follow – emphasis on effects on contests for control of international rulemaking within the structures of economic globalization. – Japan-China-U.S. 4
  5. 5. The TPP • Origins • Objectives – Market access – Regionalization – Inter-agreement coherence – Emerging technologieshttp://www.coha.org/the-trans-pacific-partnership- free-trade-at-what-costs/ – “living” agreement 5
  6. 6. TPP Scope• (1) regulation of competition (antitrust) • (10) investment (transforming bi-lateral issues, trade agreement terms into a multi-lateral• (2) cooperation and capacity building framework, substantive legal protections (based on a demand driven and flexible, for investors and investments of each TPP• (3) cross border services (fair open and country in the other TPP countries) transparent markets for services), • (11) labor issues,• (4) customs, • (12) legal issues (dispute resolution),• (5) e-commerce, • (13) market access for goods,• (6) environmental issues (a specific • (14) rules of origin, cooperation framework for addressing • (15) sanitary and phytosanitary standards capacity building needs), (animal, plant health and food safety),• (7) financial services regulation • (16) technical barriers to trade issues, (investment in financial institutions and • (17) telecommunications, cross-border trade in financial services), • (18) temporary entry,• (8) government procurement, • (19) textiles and apparel, and• (9) intellectual property (reinforce and • (20) trade remedies. develop existing WTO Agreement on TRIPS, 6
  7. 7. TPP Beyond Economic Policies • Criticized as opaque • Little civil society engagement • Strong state to state focus – Integrated approach to development policy – Alternative to WTO; partial multi-lateralism – Contain China 7
  8. 8. Too Good to Resist• On March 15, 2013 Prime Minister Abe, in what was described as an impassioned televised address, announced that Japan would join the TPP. – TPP “as Japan’s last chance to remain an economic power in Asia and shape the region’s future.” – “If Japan alone continues to look inward, we will have no hope for growth. This is our last chance. If we don’t seize it, Japan will be left out.” – Asashi Shimbun poll indicating 71% favoring the decision. • support for actually joining the TPP trade pact, not just the talks, is lower at 53% 8
  9. 9. Strategic Implications: Japan• TPP as a counterweight to recent aggressive Chinese efforts to take the lead in determining the scope and shape of bi-lateral and multi-lateral relationships in the Pacific• TPP as a driver of domestic reform.• Refining the basic nature of Japan’s relationship with China and the United States.• Maintain position as a leading participant in construction of global trading rules – TPP aims to be the 21st century trade agreement that sets the rules for trade and investment in the Asia-Pacific region going forward 9
  10. 10. Strategic Implications: U.S.• TPP basis for coordinating U.S. trade policies in Asia and Latin America.• Building the regional trade architecture in the Pacific basin, opening export markets, and building an alliance network around China• Integrate multiple multi lateral trade groups within similar set fo rules developed under U.S. guidance.• Counter Chinese sovereign investing interest 10
  11. 11. Implications for China • On a strategic level, Washington wants Southeast Asia to form the center of an "Asian strategic alliance" that includes Northeast Asia, Southeast Asia and India. • On a political level, the US continues to export "democracy" and Western values to Southeast Asian countries. • On the economic level, the US has close ties with Southeast Asia in terms of trade, finance and investment and considers the latter an important overseas market, resource supplier and investment destination. • At a military and security level, the US wants to set up more military bases and positively interfere in security affairs inOutlying party [By Jiao Haiyang/China.org.cn] the Asia-Pacific region. 11
  12. 12. Bottom Line:Polycentricity and Competition• Trade policy and the regulatory environment will continue to develop as complex overlapping circles of trade regimes. – TPP, CEPEA, FRAA.• Within a global order in which the basics of transnational trade is still sometimes contested, the real prize is influence over the language of control and the development of polycentric alignment of states that increasingly work with and compete against each other – Effected through harmonized and coherent rules frameworks designed to provide marginal advantage to their particular national circumstances.• This is something Korea and Japan well understand. 12
  13. 13. And Japan in the Middle • For Japan this may represent containment that protects its sizeable investment in China, at least temporarily. • But it also reaffirms that Japan stands uncomfortably close to the fissure that separates U.S. from Chinese interests, and must continue to rely on the internationalization of rulemaking to protect its interests. • An independent path for Japan is unlikely to be an option worth considering. 13
  14. 14. The shadow of 1914 falls over the Pacific THANKShttp://www.ft.com/intl/cms/s/0/e29e200a-6ebb-11e2-9ded-00144feab49a.html#axzz2OBoyj8tY

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