Published 1 April 2015
Added to TDM 1 (2014) April 2014
The Japanese government appears to view the Trans-Pacific Partnership ("TPP") with a mixture of hope and trepidation. The successful conclusion of the TPP may bring with it significant new opportunities for Japanese businesses and the promise of renewed growth. Yet these potential advantages are expected to be accompanied by new rules that may pose challenges for Japanese decision-makers at both the negotiation and implementation stages.
The TPP is expected to include rules concerning cross-border services, environmental issues, financial services, government procurement, investment, market access for goods, rules of origin, trade remedies, dispute resolution mechanisms and potentially provisions concerning currency manipulation. Some of these new rules are the subject of ongoing negotiation at the time of writing, particularly between the United States (the "US") and Japan, while others may be difficult to implement domestically even if a deal is concluded.
Still, Japan is driven to participate in the TPP by a number of factors that can be usefully bifurcated into those economic and those political. This paper briefly examines Japan's motivations, negotiating challenges, previous investor-state dispute resolution provisions and related policy, and finally touches upon potential alternatives to the TPP.
Footnotes omitted from this introduction