ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
International Relations

Japan urges more of Latin America to join TPP

Top diplomat stresses trade pact is 'not limited' to the Pacific region

Japanese Foreign Minister Taro Kono pushed Latin American nations to join the Trans-Pacific Partnership at the Group of 20 meeting in Buenos Aires earlier this week.   © Reuters

TOKYO -- Japan is encouraging more countries from Central and South America to join the reworked Trans-Pacific Partnership trade pact, in hopes of both capturing the potential of these markets and pressuring the U.S. to return to a framework it left last year.

Japanese Foreign Minister Taro Kono attended the Group of 20 meeting in Buenos Aires on Sunday and Monday, where he stressed the importance of stronger free trade mechanisms. "The TPP has 'Trans-Pacific' in its name but is not limited to the Pacific Ocean," he said afterwards, calling on Central and South American countries to join.

The region has a combined population of about 600 million and a gross domestic product of around $5.1 trillion. Japanese companies have been urging Tokyo to bolster economic ties with these countries.

Mexico, Chile and Peru are already part of the TPP, but Brazil and Argentina -- the two giants of the region -- are not. "Some in Japan's farming sector worry about imports from these two major agricultural producers, but there shouldn't be any problems as long as we stick to the terms we've agreed on for the TPP-11," a Japanese government source said, referring to the pact's 11 current members. Brazilian Foreign Minister Aloysio Nunes Ferreira expressed hopes for greater access to the Japanese market in a recent interview with Nikkei.

But with both Mexico and Brazil electing new presidents in 2018, the global trend toward protectionism could spread. Kono is encouraging Latin American nations to join the TPP in an effort to prevent this from happening.

"The United Kingdom has already shown its interest in joining. So I would like to welcome Brazil and other Latin American and Caribbean countries to join it," Kono said in Sao Paulo on Sunday.

Current TPP members are working to ratify the deal at home, with an eye to putting it into effect in the first half of 2019. Any negotiations to add new members would happen later. Japan wants to open the door to any interested countries, including the U.K., Thailand and South Korea.

The pact would lower tariff rates among member nations, which in turn would make American products less competitive within the bloc. Tokyo hopes adding more countries would pressure Washington to return.

Colombia has already expressed an interest in joining. It is the only member of a four-nation Latin American trade bloc called the Pacific Alliance that is not also a part of the TPP. Bogota worries this could put it at a disadvantage on trade.

Japan is also hoping to use the TPP as a way to counter Chinese influence in Central and South America. Chinese Foreign Minister Wang Yi met with Argentinian counterpart Jorge Faurie on the sidelines of the G-20 meeting, promising to provide maximum assistance for development of the region.

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media