Japan to join Pacific trade talks

TOKYO - Reuters

Japanese Prime Minister Shinzo Abe answers questions on March 15. AFP Photo

Prime Minister Shinzo Abe announced on March 15 that Tokyo will seek to join talks on a U.S.-led Pacific free trade pact which proponents say will help tap vibrant regional growth, open Japan to tougher competition and create momentum for reforms needed to revive the long-stagnant economy.

The decision to join talks on the Trans-Pacific Partnership (TPP) launches the “third arrow” in Abe’s policy triad following the fiscal pump priming and hyper-easy monetary measures he has pushed since returning to office in December after his Liberal Democratic Party’s (LDP) big election win.

“Emerging countries in Asia are shifting to an open economy one after another. If Japan alone remains an inward-looking economy, there would be no chance for growth,” Abe told a news conference.“This is our last chance. If we miss this opportunity, Japan will be left behind.”

“Abenomics” has been playing to rave reviews in the Tokyo stock market and with voters, around 70 percent of whom support the prime minister.