"CEAC Commentary" introduces news analyses andopinions in Japan on topics related to regional
cooperation and integration in East Asia, but they do
not represent the views of CEAC as an institution.

October 31, 2016

Reconsidering Significance of TPP on theOccasion of the Current Extraordinary Sessionof the Diet
By SUZUKI Keisuke
The autumn session of the Diet has started on September 26th. On that day, Prime
Minister delivered a policy speech and Financial Minister delivered a financial policy
speech respectively, which were followed by party representatives' questions on 27th and28th. Among the issues to be discussed in the current Diet session, including economic
fiscal stimulus package, postponing bill for consumption tax hike, IR promotion bill, one ofthe gravest would be the TPP Agreement and its related bills which were tabled at theprevious session of the Diet.
At the spring Diet session, I stood at the forefront of the debate on TPP issues as aranking member of TPP Special Committee and discussed the matter with Prime Ministerat the Diet questioning as a member of the ruling coalition. In that capacity, I have strongreservations about the way in which then Democratic Party of Japan dealt with the issue inlight of the national interest. I sincerely hope that the opposition party under the newdispensation will engage in ever more constructive discussions.
With regard to TPP, we need to revisit the strategic significance of it, as is true not
only with Japan but also with the United States. First of all, TPP should be the biggest
political bargaining chip to offset the negative impact of declining population in the contextof the size of the Japanese market. The greatest challenge for Japan is population declineand certainly market and labor force will be directly affected. Besides, even if Japan looks
toward broad free-trade zone, it is extremely difficult for Japan in the first place to create afree-trade bloc in the Asia-Pacific region in which Japan can demonstrate overwhelming
leadership and influence. Realistically speaking, Japan has little choice but to be affected
either by U.S. or by China.

Such being the case, given the Japanese social ethos, its legal system and its
business environment, we would have to admit the United States have far more affinity forJapan than China does. This is apparently so when we look at such areas as intellectual
property rights, dispute settlement, legal predictability.

It is vital for Japan to takeinitiatives together with U.S. to develop a marketplace which has a high affinity forJapanese domestic legal system and its business environment, especially when it comes topromotion of Japanese economic growth.
Another point is strategic significance of TPP. It is highly probable that afree-trade block in Asia-Pacific including China will be established before long. In view of
the national interest of Japan as well as regional stability, it is imperative that common ruleswith affinity for those of Japan and U.S. as well as common values such as rule of law andhuman rights lay the foundation for it. And this feeling is actually shared among many
Asian countries.
For many Asian countries daunted by China’s unilateral hegemonic imposition,
participating in TPP led by Japan and the U.S. means a lot strategically. In addition, as thebest scenario for the stability in the Asia-Pacific region, it is expected that the whole region
would share such values as rule of law, human rights, freedom and democracy in the longrun through participation in TPP as a leverage, and China would also participate in it
under this condition.
Thus, TPP has many profound implications. Of course, TPP has its meaning as
trade negotiations, it is unlikely that Japan will make an all-out victory in areas such as
trade including tariffs. It is true that TPP negotiation will be accompanied by some pain, foreach country with different economic structure engage in tough negotiation to get morethan fifty-fifty split. However, we need to reaffirm the fundamental merits it has in terms ofdiplomacy, strategy and economy, which outweigh the negative aspects of it, and thesenegative aspects are to be duly addressed by domestic law properly.
In the previous Diet session, various points of discussions were conducted formore than twenty hours at the special committee of the House of Representatives. While
the scope of the issue has already been covered thoroughly, it is expected that we reaffirm
the significance of TPP and discuss additional points if any and make a decision. I think
making such a constructive debate at the current Diet session would be the best way inpursuit of Japan's national interest.
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(This is an English translation of the article written by Mr. SUZUKI Keisuke, Member ofthe House of Representatives (LDP), which originally appeared on the e-forum“Hyakka-Somei (Hundred Ducks in Full Voice)” of CEAC on October 1, 2016.)

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