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World

Japan's PM struggles with agreement on US-led trade pact

Published Updated

japanTOKYO: Prime Minister Yoshihiko Noda looked to be struggling on Friday to win backing from his own party for Japan to join talks on a US-led free trade pact that could transform the Japanese economy.

Noda is due to fly on Saturday to Hawaii for a meeting of Asia-Pacific leaders where he is due to tell other members in the proposed trade fact whether Japan will join.

He had been expected to make an announcement on Thursday but that has been delayed by the failure of the government and ruling party officials to reach a conclusion.

"I am aware that many are wary of joining the negotiations. I would like to keep this in mind when finalizing my decision." he told lawmakers.

"As I have said before, I would like to go through with a thorough discussion on the subject and come up with a conclusion promptly."

Membership of the Trans-Pacific Partnership (TPP) would wrench open Japan's closeted agriculture sector to competition, give its major exporters better tariff deals overseas and challenge a political system over which the farm lobby has long held powerful influence.

For Noda, who became Japan's sixth premier in five years only two months ago, the decision on trade talks is his first big test in the face of deep divisions in his ruling party and an opposition able to block laws.

Copyright APP (Associated Press of Pakistan), 2010

Copyright Reuters, 2010

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