JAPANESE THINKING ON CUTTING TARIFFS ON GOODS THAT

UNCLAS SECTION 01 OF 02 TOKYO 004814 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/J, EEB/TPP, OES STATE PASS USTR FOR WCUTLER AND MBEEMAN E.O. 12958: N/A TAGS: ETRD SENV JA SUBJECT: JAPANESE THINKING ON CUTTING TARIFFS ON GOODS THAT CAN REDUCE GREENHOUSE GASES ¶1. (SBU) Summary: Japanese Government officials report the call in former PM Mori's September 24 speech to the UN High Level Event on Climate Change, for countries to reduce voluntarily their tariffs on goods that can help cut CO2 emissions, is a move to get countries to act now against climate change. It is also designed to counter the frequent demand from developing countries that Japan and other industrialized states transfer technologies to them as part of the global effort on climate change. Cutting tariffs voluntarily rather than in the context of the WTO talks should enable interested countries, in the GOJ's view, to act now. Regarding Indonesia's suggestion that trade ministers meet on the margins of the climate change meeting in December on Bali, GOJ officials privately say if there is going to be a meeting of trade ministers in the coming months, it should focus on successfully completing the Doha Development Agenda. Japan, however, has not yet developed an official position on how to respond to the Indonesian invitation and plans to consult with other governments. End Summary. ¶2. (SBU) Discussions with senior officials at MOFA and METI regarding the point in former PM Mori's September 24 speech to the UN High Level Event proposing countries voluntarily reduce or eliminate tariffs on products that can reduce greenhouse gas emissions, "such as hybrid cars, wind power generators, and solar batteries," show a GOJ still in the early stages of its thinking on the issue. According to one senior METI official, the Foreign Ministry put the idea into Mori's speech and the GOJ still needs to do further work developing the details. Officials at MOFA report the GOJ believes the reduction or elimination of tariffs on these goods should be voluntary, not negotiated, and should in no way interfere with work on the WTO's Doha Development Agenda. ¶3. (SBU) Senior MOFA officials describe the proposal as a way to get quick action for cutting global greenhouse gas emissions -- they specifically note the length of the Doha Development Agenda talks as a reason for countries to act on their own rather than waiting to finalize negotiations on tariff cuts. One MOFA official called it an initiative that countries could move on as soon as they are ready, independent of others, and that would eliminate their ability to use the WTO as an excuse for inaction. ¶4. (SBU) They also note the Japanese idea is a way to deal with developing countries who repeatedly call on Japan and other industrialized countries to transfer technologies to middle income and developing countries. "The tariffs are a charge these countries are putting on the technologies and goods that they say they want from us," one senior MOFA official said. The voluntary tariff reduction approach is an effort, he continued, to be creative about aligning market behavior with steps to promote the public good. Reducing tariffs would also be among the steps governments could take to reduce costs so that private sector actors buy and use environmentally preferable goods and technologies. ¶5. (U) Officials at MOFA and METI noted the President's remarks to the Major Economies Meeting also included a call for eliminating tariff and non-tariff barriers on clean energy goods and services and asked to be further advised on U.S. thinking on the issue. The MOFA officials also asked about the proposal to create a new international clean technology fund. ¶6. (SBU) Regarding the Indonesian Government's invitation to trade ministers to meet in December on the margins of the UN Climate Change Conference on Bali, both MOFA and METI officials noted that if there is to be a meeting of trade ministers in the coming months, it should be focused on reaching a successful conclusion for the Doha Development Agenda. The GOJ has not yet determined its position on the Indonesian idea, but senior officials in both MOFA and METI talking separately to emboffs stressed such discussions on trade should take place in the WTO. Officials at METI also noted considerable preparatory work -- for example in terms of agenda, what will be discussed, and possible results -- needs to be done before trade ministers can decide whether to meet. The GOJ plans to consult with other governments, TOKYO 00004814 002 OF 002 including the USG, before reaching a decision on whether to attend. SCHIEFFER