Japan Initiates TPP Ratification Process

While the United States is likely months away from formal consideration of the Trans-Pacific Partnership (TPP) agreement, the Japanese government announced this week it is initiating efforts for legislative ratification of the pact.

The announcement came through adoption of a Cabinet resolution that says the Japanese government will submit 11 bills to the Japanese Parliament, known as the Diet, aiming at ratifying TPP and enacting the bills required for approval of TPP.

The government intends to deliberate and pass the bills during the current Diet session that ends on June 1 to avoid making TPP adoption a focal issue during the Japanese general election that is very likely to be called in July.

Japanese trade officials noted that they hope to build momentum towards ratification of the pact in other countries by ensuring Japan takes the lead in proceeding with necessary domestic arrangements. Separately this week, Japanese officials dismissed the suggestion that parts of the agreement could be renegotiated, noting it was hard won and agreed to by all 12 parties at the negotiating table.

The moves from Japan come as it is increasingly clear TPP ratification in many countries will be on a long timeline.

In the United States, top lawmakers are cautious about addressing the agreement before November’s presidential election, given that many of the Democratic and Republican presidential candidates have expressed opposition to the accord.

Canadian Prime Minister Justin Trudeau, who met with U.S. President Barack Obama this week in Washington, D.C., has not committed to any timeline for Canadian ratification.

On the other side of the spectrum, Malaysia has signaled that all amendments in relation to TPP compliance may be completed by year end. Other TPP member countries have indicated that they will take most of 2016 to seek approval.

The agreement will enter into force 60 days after all 12 member countries ratify it. If all member nations have not ratified it after two years, it will take effect 60 days after it is ratified by at least six countries accounting for 85 percent of the combined gross domestic product of the 12 signatories. In practice, this means both the United States and Japan must ratify the agreement.

The U.S. Grains Council (USGC) participated in the TPP negotiations on behalf of the U.S. feed grains industry and is poised to help its sister organizations – including the National Corn Growers Association, National Sorghum Producers and National Barley Growers Association – make the case for Congressional approval in the coming months.

More information about TPP is available from USDA’s Foreign Agricultural Service, the Office of the U.S. Trade Representative and the Trade Benefits America Coalition. As additional details of the text become available, so will additional analysis of the agreement’s anticipated impact, which the Council will provide directly to members and in publications like this one.