JAPANESE BUREAUCRATS SLAM METI'S TRADE PROPOSAL

C O N F I D E N T I A L TOKYO 001887 SIPDIS SIPDIS DEPT PASS USTR FOR AUSTR CUTLER GENEVA PASS USTR PARIS FOR OECD E.O. 12958: DECL: 04/07/2016 TAGS: ETRD ECON PREL PGOV JA SUBJECT: JAPANESE BUREAUCRATS SLAM METI'S TRADE PROPOSAL REF: TOKYO 1851 Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 (b/d). ¶1. (C) Summary. Four Japanese Ministries slammed METI for its uncoordinated proposal for an East Asia Economic Partnership Agreement at a previously scheduled interagency meeting today. End Summary. ¶2. (C) METI Minister's Nikai's proposal for an East Asia Economic Partnership Agreement (see reftel) was "slammed" by all four other ministries participating in a previously scheduled Director General level meeting to coordinate Japan's trade policy on April 7, according to MOFA Economic Director General Ishikawa. The Ministry of Agriculture Director General, according to Ishikawa, was the most critical pointing out that METI could not possibly expect that Japan would negotiate any agricultural trade liberalization under a proposal that had not been cleared with that Ministry. The Ministry of Health, Labor and Welfare likewise criticized Minister Nikai's proposal asking rhetorically how Japan could possible cope with Chinese requests for liberalization of the movement of one billion persons. Likewise, the Ministry of Finance criticized METI's proposal and its failure to coordinate in advance. ¶3. (C ) Ishikawa, who called EMIN from his car to gleefully report this news, said that because of the strong criticism from these three other Ministries, he could temper somewhat his own Ministry's opposition. He said he confined his comments to MOFA's political concerns about balancing economic and political issues and the need to consider the impact on Japan's relations with North American and European trading partners. ¶4. (C ) Ishikawa said he has heard that Agriculture Minister Nakagawa has been the most scathing about this proposal because he thinks it would undermine Japan's important political and security relationship with the United States. Ishikawa concluded by saying that MAFF and MOFA are well aware of the United States' concerns over Nikai's proposal for the future of the East Asian Economic Architecture. SCHIEFFER