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| Obama’s Asia trip off to a bad start with failure to reach agreement on trade in Tokyo | Obama’s Asia trip off to a bad start with failure to reach agreement on trade in Tokyo |
| (about 2 hours later) | |
| SEOUL — U.S. and Japanese officials gave starkly different assessments Friday on key trade negotiations, as President Obama left Tokyo without a final agreement on a deal to improve access to Japanese markets for U.S. producers. | SEOUL — U.S. and Japanese officials gave starkly different assessments Friday on key trade negotiations, as President Obama left Tokyo without a final agreement on a deal to improve access to Japanese markets for U.S. producers. |
| A senior Obama administration official said the two countries had achieved a “breakthrough” in their effort to help advance a broader, 12-nation free trade accord known as the Trans-Pacific Partnership initiative. | |
| As Obama flew from Tokyo to Seoul, the official told reporters on Air Force One that negotiators had set “parameters” for continued talks that could lead to an agreement. | As Obama flew from Tokyo to Seoul, the official told reporters on Air Force One that negotiators had set “parameters” for continued talks that could lead to an agreement. |
| But Akira Amari, a Japanese state minister in charge of the trade talks for Prime Minister Shinzo Abe’s administration, said in Tokyo that there were still several unresolved issues. | But Akira Amari, a Japanese state minister in charge of the trade talks for Prime Minister Shinzo Abe’s administration, said in Tokyo that there were still several unresolved issues. |
| “We made significant progress, but our positions are still far apart,” Amari told reporters. “We’ll continue talks.” | “We made significant progress, but our positions are still far apart,” Amari told reporters. “We’ll continue talks.” |
| The White House views the TPP — whose 12 negotiating countries account for 40 percent of global GDP — as a critical component of Obama’s strategy to shift U.S. foreign policy engagement toward the Asia-Pacific. | The White House views the TPP — whose 12 negotiating countries account for 40 percent of global GDP — as a critical component of Obama’s strategy to shift U.S. foreign policy engagement toward the Asia-Pacific. |
| The failure of the two sides to strike at least the broad outlines of an agreement to allow U.S. producers improved access to Japanese markets for automobiles, beef, poultry, dairy, rice, sugar and wheat was seen as another foreign policy setback for the Obama administration. The president has said the Pacific free trade deal would help U.S. exports and create jobs. | The failure of the two sides to strike at least the broad outlines of an agreement to allow U.S. producers improved access to Japanese markets for automobiles, beef, poultry, dairy, rice, sugar and wheat was seen as another foreign policy setback for the Obama administration. The president has said the Pacific free trade deal would help U.S. exports and create jobs. |
| Both Obama and Abe instructed their aides to try to reach an accord during Obama’s state visit, which marked the president’s first stop on a week-long swing through four Asian nations. Negotiators held what senior Obama administration official Ben Rhodes described as “around-the-clock” talks during the past two days, and the issue dominated the bilateral meeting between the two leaders, according to administration officials. | Both Obama and Abe instructed their aides to try to reach an accord during Obama’s state visit, which marked the president’s first stop on a week-long swing through four Asian nations. Negotiators held what senior Obama administration official Ben Rhodes described as “around-the-clock” talks during the past two days, and the issue dominated the bilateral meeting between the two leaders, according to administration officials. |
| But the trade negotiations have faced intense opposition in both countries. Senate Democrats blocked Obama’s bid in Congress to gain “trade promotion authority,” which would have allowed him to negotiate a deal without lawmakers changing the terms later. Democrats have looked skeptically at the trade deal amid strong opposition from labor unions and environmental groups. | But the trade negotiations have faced intense opposition in both countries. Senate Democrats blocked Obama’s bid in Congress to gain “trade promotion authority,” which would have allowed him to negotiate a deal without lawmakers changing the terms later. Democrats have looked skeptically at the trade deal amid strong opposition from labor unions and environmental groups. |
| Thea Lee, deputy chief of staff at the AFL-CIO, scoffed Friday at the White House’s contention that a breakthrough had been made. | Thea Lee, deputy chief of staff at the AFL-CIO, scoffed Friday at the White House’s contention that a breakthrough had been made. |
| “For one party to say they’ve made terrific progress afterwards is a little like window dressing,” Lee said, adding that the failure to secure a deal is “good news because these talks are way off track. | “For one party to say they’ve made terrific progress afterwards is a little like window dressing,” Lee said, adding that the failure to secure a deal is “good news because these talks are way off track. |
| “When you are trying to get a last-minute deal, and there’s a time pressure like this, it’s been our experience that important things get thrown under the bus,” Lee said. “We’re relieved they did not attempt to create a phony deal.” | “When you are trying to get a last-minute deal, and there’s a time pressure like this, it’s been our experience that important things get thrown under the bus,” Lee said. “We’re relieved they did not attempt to create a phony deal.” |
| Rhodes insisted that the United States and Japan “have identified a path forward to deal with our bilateral issues in the negotiation” that will also help in negotiations with other nations. | Rhodes insisted that the United States and Japan “have identified a path forward to deal with our bilateral issues in the negotiation” that will also help in negotiations with other nations. |
| The deal under discussion would allow Japan to maintain some protections for the six politically sensitive market sectors, but the exact shape of the safeguards has yet to be determined, officials said. The senior administration official said that some modest tariff cuts could be phased in quickly, while “the deeper the cut in the tariff, the longer time it may take to get there.” | |
| Some U.S. domestic manufacturers are critical of the concessions the Obama administration is now entertaining, saying the trade deal will allow Japanese competitors to further penetrate the American market without providing the same level of access in return. | Some U.S. domestic manufacturers are critical of the concessions the Obama administration is now entertaining, saying the trade deal will allow Japanese competitors to further penetrate the American market without providing the same level of access in return. |
| “This whole thing has morphed into a question of geopolitics. It’s no longer about trade,” said Steve Biegun, vice president of international government affairs at Ford Motor Co. He added that, given Japan’s insistence on maintaining trade barriers under the deal, “That’s not 21st-century trade, that’s-19th century trade, that’s mercantilism.” | “This whole thing has morphed into a question of geopolitics. It’s no longer about trade,” said Steve Biegun, vice president of international government affairs at Ford Motor Co. He added that, given Japan’s insistence on maintaining trade barriers under the deal, “That’s not 21st-century trade, that’s-19th century trade, that’s mercantilism.” |
| Lori Wallach, a trade expert for Public Citizen, which opposes the TPP, said the talks in Tokyo amounted to a “do-or-die moment” for the administration. | Lori Wallach, a trade expert for Public Citizen, which opposes the TPP, said the talks in Tokyo amounted to a “do-or-die moment” for the administration. |
| “President Obama coming to your country would ostensibly be the moment that would happen, but it didn’t,” Wallach said. “And they needed to breathe life back into the broader process.” | “President Obama coming to your country would ostensibly be the moment that would happen, but it didn’t,” Wallach said. “And they needed to breathe life back into the broader process.” |
| But the senior administration official, who asked to remain anonymous to be able to describe the status of the talks, said the White House is optimistic that a deal with Japan is within reach, though the aide could not specify when that would happen. | But the senior administration official, who asked to remain anonymous to be able to describe the status of the talks, said the White House is optimistic that a deal with Japan is within reach, though the aide could not specify when that would happen. |
| “Nothing is agreed to until everything is agreed to,” said the official, adding that negotiators had been going “line-by-line” through the agreement. “And so when we say there is an agreement, the agreement comes on the very last day of the negotiation when you have a comprehensive package. That’s not where we are today.” | “Nothing is agreed to until everything is agreed to,” said the official, adding that negotiators had been going “line-by-line” through the agreement. “And so when we say there is an agreement, the agreement comes on the very last day of the negotiation when you have a comprehensive package. That’s not where we are today.” |
| Nakamura reported from Washington. | Nakamura reported from Washington. |