The APEC Ministers Responsible for Trade discussions, held last week on South Korea’s Jeju Island, were skipped by top business leaders from Japan.
Major trade negotiator Ryosei Akazawa, the leading trade negotiator for Prime Minister Shigeru Ishiba, Yoji Muto, and US Trade Representative Jamieson Greer were not present at the event. In their place, Masaki Ogushi, a part of Akazawa’s dealing group, represented Japan.
In contrast to the UK, Japan is not in a rush to reach a stale or ineffective trade agreement with US President Donald Trump, especially with elections to Japan’s national assembly’s lower house scheduled for July. The Japanese are not looking for a low-key settlement, unlike the South Koreans.
The Chinese economy is simply too affected by the 25 % tariffs on cars and car parts, and America’s continued assault on Japan’s rice producers is too intolerant.
Ishiba now has a lot in power, and his Liberal Democratic Party lost that majority in October last year. He now has to decide whether to support Japan or risk losing the group’s lot in the lower house.
Akazawa is scheduled to travel to Washington, D.C., for a second round of official discussions later this month, perhaps in the coming week. Ogushi met with Chief Cabinet Secretary Hayashi Yoshimasa to explore approach while he was in South Korea. He later told the media that his main concern was protecting what needs to be protected and saying what needs to be said.” My focus is on our regional interests.”
Asia-Pacific Economic Cooperation ( APEC ), which was founded in 1989 on the advice of Australian Prime Minister Bob Hawke, describes itself as” a cooperative, multilateral economic and trade forum.” Most of the economic institutions close to the Pacific Ocean are among its 21 people.
Hong Kong, Foreign Taipei, and the People’s Republic of China are all people. The Russian Federation is a part in an unexpected acknowledgment of regional truth. Never even North Korea.
Australia, Brunei Darussalam, Canada, Chile, Hong Kong, China Taipei, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Thailand, the US, and Vietnam are on the record. The purpose of APEC is described at this website.
What Does APEC Accomplish? is a question that APEC comments on its site. with” APEC ensures that products, services, investment, and people move effortlessly across frontiers.” Except that it does not and cannot do so because” There are no binding commitments or treaty obligations.” On a deliberate base, agreements are made.
In theory, the US no longer qualifies for participation in APEC because it is now opposed to protectionism, investment restrictions, and reversed the process of economic integration. However, in reality, there is no established method for the expulsion of a representative who supports the organization’s goals.
According to some press reviews, Australia, Canada, Russia, and Singapore joined Japan in refusing to send their most top business associates to Jeju, which suggests dissatisfaction with Donald Trump’s aggressive protectionism. Standard announcements from the respective governments do not, however, support this view.
Despite what some people think of Trump’s exorbitant tariffs and antagonism, politics prevailed, and the 21 APEC participants released a joint statement declaring their commitment to the Putrajaya Vision 2040, including through the application of the Aotearoa Plan of Action to create an open, active, adaptable, and quiet Asia-Pacific area for the wealth of all our people and future generations.
Putrajaya Vision 2040, which APEC officials in Malaysia approved in 2020, aims to “make sure that the Asia-Pacific continues to be the world’s most powerful and connected local market.” In order to achieve this, APEC” will continue to work together to provide, a gratis, open, honest, non-discriminatory, transparent, and formulaic trade and investment environment.”
The Aotearoa Plan, which was made public in New Zealand in 2021, lists specific actions that need to be taken to realize the Putrajaya Vision, including support for “global efforts to clearly address all economic challenges, including climate change, extreme conditions, and natural disasters, for a green world.”
This contrasts with Trump’s plans to restore America’s greatness or his decision to step down from the Paris Agreement on climate change and reduce environmental protection. Washington, DC, is a long way from Aotearoa and Putrajaya in New Zealand.
Additionally, it is noted in the joint statement released in Jeju that:
We acknowledge the WTO’s role in advancing trade issues and the agreement-making process as a fundamental component of the global trading system. We are aware that the WTO faces challenges and requires serious, necessary, and comprehensive reform to enhance all of its functions and to be more relevant and responsive in light of contemporary realities. We applaud the efforts made to enlarge discussions on contemporary trade issues at the WTO.
This may be interpreted as indirectly addressing the US complaint that the WTO has allowed itself to be taken advantage of by China, which dates from the Obama administration. The truth is still that the US has harmed the WTO by preventing appointments to its appellate body, which is currently vacant. Additionally, it was reported that the Trump administration had reviewed US funding for the WTO at the end of March.
This has made it possible for Japan to once more establish itself as a proponent of free trade. On the occasion of the 30th anniversary of the WTO’s founding, Ishiba received a courtesy call from WTO Director-General Ngozi Okonjo-Iweala on May 13. The Director-General “expressed her expectation for the role of Japan as a champion of the multilateral trading system,” and both of them emphasized that” now is the time” to unite and address the issues facing the WTO.
Takeshi Iwaya, the prime minister of Japan, Katsunobu Kato, the economy, trade, and industry minister, and Okonjo-Iweala had a meeting with them during her working visit. In a joint statement, Okonjo-Iweala and Iwaya stated that” the multilateral trading system’s value is unquestionable.”
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership ( CPTPP ), the trade agreement that replaced the Trans-Pacific Partnership ( TPP ), which collapsed after Trump abandoned it in 2017, was a key initiative of Japanese Prime Minister Shinzo Abe. The CPTPP, which excludes China, became effective in 2018.
Japan has also been a key player in the newly signed, entirely Asia-Pacific trade agreement, Regional Comprehensive Economic Partnership (RCEP ). China is a part of the RCEP, and India may also be a part.
The Constitutional Democratic Party, the country’s largest opposition party, is a strong supporter of the multilateral trading system in Japan. There is a general consensus among people who support free trade and who opposes the US government’s subversion.
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