Showing posts with label trade policy. Show all posts
Showing posts with label trade policy. Show all posts

Sunday, June 03, 2007

Meet the new daijin, same as the old daijin

On Friday morning, Prime Minister Abe summoned forty-eight-year-old Akagi Norihiko to Kantei and requested that Akagi serve as Matsuoka Toshikatsu's successor at the Ministry of Agriculture, Forestry, and Fisheries (MAFF). Akagi, a Tokyo University graduate, MAFF old boy (OB), and grandson of an agriculture minister in the cabinet of Abe's grandfather Kishi, was first elected the same year as Matsuoka (1990) and served in a similar succession of posts in LDP policy organs as Matsuoka.

In other words, he's a younger, more elite version of the late Mr. Matsuoka. (I say more elite because, as I wrote in this post, Matsuoka was not a Todai grad, not a ministry generalist OB, and not a hereditary politician.)

There are no indications that the policies Akagi will pursue will be any different from Matsuoka, and there are already signs of inappropriate monetary dealings between Akagi's koenkai and groups seeking contracts from MAFF. As Abe made clear when appointing him, Akagi will, like Matsuoka, seek to promote further reform of Japanese agriculture, work to the target of one trillion yen in agricultural exports, and act as a tough negotiator in WTO negotiations. In other words, agricultural mercantilism and favoritism on behalf of companies and farmers supporting the LDP.

Akagi's accession to the cabinet is a clear illustration that the problem is much bigger than Matsuoka: the problem is systemic. No cabinet-eligible LDP politician has clean hands.

Wednesday, April 11, 2007

Is the Bush administration thinking about the China relationship?

With the Bush administration's recent move to press a suit against Chinese violations of intellectual property in the WTO sparking fears of a full-blown Sino-American trade war, I must ask the same questionI asked when the US Commerce Department announced tariffs on Chinese glossy paper: is this administration pursuing a coherent strategy in Asia, or is it just making things up as it goes along? Does the US really expect that friction on trade will not have consequences for Sino-American cooperation in other areas, most notably in the six-party talks?

The US, of course, should not hesitate to press China on matters of concern, but it must choose its battles wisely; with Congress breathing down the administration's neck on the economic relationship with China, I fear that prudence is becoming an altogether rare quality in US China policy. Moreover, I do not think the administration has made an effort to counter the public scapegoating of China and explain to the American public the substantial benefits of the relationship. That is a point made by the authors of a new Council on Foreign Relations study on the relationship with China. As co-author Carla Hills said at a press conference announcing the report, "We recommended that the president describe to the American public the various benefits that we derive from that relationship and that we state that our interests are furthered by a responsible and cooperative China that adheres to international norms, a prosperous and peaceful China that fuels global growth, and an equitable China that is accountable and cares about issues like the environment."

Whether this will happen is any one's guess, but I doubt that President Bush is particularly eager to defend China publicly.

Maintaining the US-China relationship requires work, and it requires vision. Neither country can afford to wait until January 2009 for either.

Wednesday, April 04, 2007

Japan feels the heat

Based on the coverage in Japan's newspapers, it seems that Japan was blindsided by the US-ROK free-trade agreement. Perhaps Japanese observers did not quite believe that negotiators would be able conclude an agreement before time ran out. Of course, the agreement's passage in both the US and South Korean legislatures is hardly a foregone conclusion, as the Japanese media has noted, but the prospect of Korean companies -- especially automakers -- having preferential access to the US market seems to have stirred the Japanese government to action.

The FT reports today that Japan has announced that it is interested in ramping up talks with South Korea on a Japan-South Korea FTA, and quotes Abe has saying that even an FTA with the US should be considered. The FT also notes, however, that Korea is more interested in trade negotiations with the EU than with Japan.

Perhaps another sign of the deficiencies of the Japanese government's foreign policy making; Tokyo seems utterly incapable of shaping the regional environment, and is continually being outflanked by its neighbors, allies, and rivals, whether on trade, security, or in the six-party talks.