Domestic politics often block economic reforms that only international agreements can make possible. The example that has gotten the most public attention during the Trans Pacific Partnership (TPP) negotiations has been agricultural protection in Japan. Prime Minister Abe was elected on a pro-growth, economic reform agenda. It is true that Japan has become far more open to foreign trade and investment over the last three decades. The remaining areas of higher protection in Japan are in mainly in agriculture. Immediately upon his recent re-election as head of the Liberal Democratic Party, Mr. Abe announced his determination to implement the necessary reforms. This is an imperative for Japan’s trading partners as well. A keystone in putting the twelve-nation TPP agreement together is Mr. Abe’s ability to deliver agricultural liberalisation. Canada, Australia, New Zealand, and the United States have a keen interest in exporting agricultural products to Japan. Domestic political opposition is not just a factor for the largest countries in these trade talks. Malaysia is facing one of the toughest issues of any party to the negotiations. Its preference scheme, deeply imbedded in its legal system, is designed to benefit native Malays over other domestic ethnic groups. Malaysia’s TPP negotiating partners...
Written by Alan Wolff