Political Changes Affect Trade Opportunities With Japan
USMEF Perspective
Political Changes Affect Trade Opportunities With Japan
The emergence last year of a strong opposition party to Japan’s long-dominant Liberal Democratic Party (LDP) has altered the dynamics of Japan’s political scene. U.S. Meat Export Federation (USMEF) staff based in Japan believe this shift could have significant implications for Japanese consumers’ views on issues like food safety as well as the course of negotiations on access for U.S. beef and pork to the Japanese market.
The dominant political party in Japan for more than half a century, the LDP adapted in the early 1990s to the increasing power of opposition parties by forming a political alliance with the leading opposition party at that time. With that political realignment, the LDP maintained its political command on domestic policies and expanded its influence on foreign policies to maintain strong ties with the United States. The LDP has been skillful in controlling political and public resistance. By negotiating with the LDP and its allies, the United States has been able to reach agreements without political fallout or public outcry in Japan. The promotion of imports by deregulating Japan’s import rules and some financial reforms are good examples.
Last year the Democratic Party of Japan (DPJ) won control in the Upper House of Parliament, which traditionally had been controlled by the LDP. While the LDP still controls the more powerful Lower House, the current situation makes it much more difficult for the LDP to make controversial changes.
In addition, the DPJ is using certain issues – such as its stated concerns about U.S. beef – to differentiate itself from the ruling party. Under the banner of protecting consumers, the DPJ has issued a manifesto that calls for keeping U.S. beef out of the market.
With all the recent labeling scandals and tainted food problems, especially the Chinese gyoza (dumplings), food safety issues have moved to center stage in Japan and are becoming increasingly political. These domestic politics have a major impact on how and why the government reacts to related issues, such as BSE, and form the backdrop for Japan’s relationships with its major agricultural trading partners. As is the case with most countries, Japan’s policies and negotiating positions on issues related to its food imports have their origins in this domestic political setting rather than protectionist objectives.
The political impact of the tainted Chinese gyoza already has hurt the ruling party. A survey released last week showed that the Fukuda Cabinet’s approval rating dropped 5.8 points to 35.6 percent because of the weak economy and the government’s response to the Chinese gyoza issue. This has provided an opportunity for the DPJ to say that the LDP doesn’t care as much about the consumers as it does.
This complicated political situation makes it very difficult for the Japanese government to make major changes in the import protocol for beef from the United States. Taking an opposition point of view, the DPJ will characterize any move by the government to expand access for U.S. beef as the result of pressure from the United States and as evidence of a blatant disregard by the LDP for the welfare of consumers. At the same time, the LDP risks being criticized by the U.S. government if it does not adopt an OIE-consistent policy for beef imports from the United States. In the end, however, it is unrealistic to expect any politicians to jeopardize their political careers by giving the appearance that their own constituents take a back seat to foreign pressure.
USMEF Perspective
Political Changes Affect Trade Opportunities With Japan
The emergence last year of a strong opposition party to Japan’s long-dominant Liberal Democratic Party (LDP) has altered the dynamics of Japan’s political scene. U.S. Meat Export Federation (USMEF) staff based in Japan believe this shift could have significant implications for Japanese consumers’ views on issues like food safety as well as the course of negotiations on access for U.S. beef and pork to the Japanese market.
The dominant political party in Japan for more than half a century, the LDP adapted in the early 1990s to the increasing power of opposition parties by forming a political alliance with the leading opposition party at that time. With that political realignment, the LDP maintained its political command on domestic policies and expanded its influence on foreign policies to maintain strong ties with the United States. The LDP has been skillful in controlling political and public resistance. By negotiating with the LDP and its allies, the United States has been able to reach agreements without political fallout or public outcry in Japan. The promotion of imports by deregulating Japan’s import rules and some financial reforms are good examples.
Last year the Democratic Party of Japan (DPJ) won control in the Upper House of Parliament, which traditionally had been controlled by the LDP. While the LDP still controls the more powerful Lower House, the current situation makes it much more difficult for the LDP to make controversial changes.
In addition, the DPJ is using certain issues – such as its stated concerns about U.S. beef – to differentiate itself from the ruling party. Under the banner of protecting consumers, the DPJ has issued a manifesto that calls for keeping U.S. beef out of the market.
With all the recent labeling scandals and tainted food problems, especially the Chinese gyoza (dumplings), food safety issues have moved to center stage in Japan and are becoming increasingly political. These domestic politics have a major impact on how and why the government reacts to related issues, such as BSE, and form the backdrop for Japan’s relationships with its major agricultural trading partners. As is the case with most countries, Japan’s policies and negotiating positions on issues related to its food imports have their origins in this domestic political setting rather than protectionist objectives.
The political impact of the tainted Chinese gyoza already has hurt the ruling party. A survey released last week showed that the Fukuda Cabinet’s approval rating dropped 5.8 points to 35.6 percent because of the weak economy and the government’s response to the Chinese gyoza issue. This has provided an opportunity for the DPJ to say that the LDP doesn’t care as much about the consumers as it does.
This complicated political situation makes it very difficult for the Japanese government to make major changes in the import protocol for beef from the United States. Taking an opposition point of view, the DPJ will characterize any move by the government to expand access for U.S. beef as the result of pressure from the United States and as evidence of a blatant disregard by the LDP for the welfare of consumers. At the same time, the LDP risks being criticized by the U.S. government if it does not adopt an OIE-consistent policy for beef imports from the United States. In the end, however, it is unrealistic to expect any politicians to jeopardize their political careers by giving the appearance that their own constituents take a back seat to foreign pressure.