TOKYO: A priority for a successor to outgoing Japanese Prime Minister Shinzo Abe will be to expand free trade as an engine of sustainable economic growth as protectionism is spreading globally, economists said.

Japan may face pressure from the United States to give it greater access to the country’s agricultural market after November’s presidential election.

In October last year, Japan and the United States concluded a trade agreement after only about a year of talks. The speedy conclusion was “greatly attributable to friendly relations” between Abe and US President Donald Trump, a source familiar with the negotiations said.

After the presidential election, the United States may demand Japan open its market for agricultural products such as rice and dairy goods further to increase exports as it is struggling with the economic fallout from the coronavirus pandemic.

Abe’s successor will face the challenge of warding off the potential US pressure while maintaining friendly bilateral relations, economists said.

Other major issues facing the next Japanese leader will include delayed talks on an East Asian free trade pact known as the Regional Comprehensive Economic Partnership as well as World Trade Organization reforms.

“It will be closely watched whether the next prime minister can expand free trade,” said Junichi Sugawara, senior research officer at Mizuho Research Institute Ltd.

Tokyo also aims to conclude trade talks with London at an early date to contain turmoil from Britain’s exit from the European Union

JIJI Press