Japan officially joined the Trans-Pacific Partnership talks scheduled for this summer on Friday, despite the objections of American auto interests and labor groups.
"We are pleased to welcome Japan’s participation in the TPP negotiations pending a consensus agreement among the current TPP members and the completion of our respective domestic processes," acting U.S. Trade Representative Demetrios Marantis said in a statement. "Japan’s entry into this important initiative for the Asia-Pacific region will help it to deliver significant economic benefits to the United States, Japan and the Asia-Pacific region."
Japan agreed with U.S. demands to lower automotive tariffs and protectionist insurance policies that have hindered imports. The concessions will allow Japan to join negotiations between the United States and 10 Pacific Rim countries to encourage international trade.
The United States has agreed to "phase out" automotive tariffs on import vehicles, such as pick-up trucks, while the Japanese agreed to a 150 percent increase in auto imports for all vehicle types, according to the terms of the agreement.
"In the near term, U.S. auto producers will be allowed to export up to 5,000 vehicles annually of each vehicle ‘type’ under the PHP program, compared with the current annual ceiling of 2,000 vehicles per vehicle type," U.S. trade officials said in a release.
While the TPP has been embraced by a majority of policymakers, Japan’s entry had drawn fierce opposition from labor groups, as well as Ford, GM and Chrysler. More than 40 Democratic lawmakers sent a letter to the White House demanding full concessions before Japan was able to enter TPP talks.
"Japan’s significant, long-standing, and persistent economic barriers put in place to block our exports and support theirs have hurt American workers and businesses for decades," the March 14 letter says. "Nowhere is the closed nature of Japan’s markets more evident than in the auto sector."
The Obama administration has pledged to make special accommodations for green vehicles in upcoming trade talks. While foreign auto companies have begun to scale back production of electric and green vehicles after the failure of the Nissan Leaf, GM has continued to push Chevrolet Volt. Such incentives could help increase sales of the struggling domestic green car market.
"Both Governments recognize the importance of facilitating trade in motor vehicles utilizing alternative fuels or energy sources, and will address emerging issues related to manufacture, importation, sale and operation of these vehicles, including the need to ensure non-discrimination," a release from the U.S. Trade Representative says.
TPP talks were expected to begin as early as this summer. It is unclear whether Japan’s entry will delay negotiations.