Halt the Growth of StateCapitalism with the TPP

Published in Nihon Keizai Shinbun
(Japan) on 4 April 2012
by Editorial (link to originallink to original)
Translated from by Ryo Christopher Kato. Edited by Adam Talkington.
In the ongoing negotiations for the Trans-Pacific Partnership, an initiative to make new rules for international trade and investment, reforming state-owned enterprises has become a central issue. The government assistance that SOEs of developing Asian countries receive presents an unfair advantage over private companies. This endangers the system of market competition on which the free conduct of business is based upon.

The reform of Asian SOEs is of serious concern to Japan. With the assent of Asia as the center of global economic development, Japanese companies need to increase investments in the region.

Foreign companies cannot apply their technologies and business models to compete in emerging markets if SOEs are throwing their weight around. This is essentially a non-tariff barrier. This is why the United States, the leader of the TPP negotiations, is pressing for the privatization of SOEs in Vietnamese and Malaysian, for example.

This particular objective fits with Japanese national interests. Japan can no longer rely on exports, but must make money from foreign investments. Japan must hurry to participate in the TPP negotiations and join the United States in seeking the reform of SOEs and the creation of new investment rules.

A point of concern, however, is the privatization of Japan’s own SOEs. The Democratic Party, the LDP, and the Komei Party submitted a reform bill for the Postal Privatization Law, wherein they propose that the JP Bank and JP Life Insurance sell off all of their stocks. It is doubtful whether or not the state of fair competition can be maintained in the financial and life insurance industry.

Disappointed by Japan’s progress in privatizing its postal system, voices within the U.S. government are raising doubt about Japan’s participation in the TPP negotiations. They find a contradiction between the wording of the postal privatization law and the principles of the TPP. It is problematic for the U.S. to hastily assume, based on one postal privatization law, that we do not share common values about fair market competition.

Faced with this concern, the Japanese government must clearly explain its commitment to protecting fair market competition. This is not a case of bowing to American pressure. The government must do so with the national interest in mind.

When a government uses SOEs to become the primary participants in markets, this is called “State Capitalism.” China is a representative example: the greater majority of powerful companies in its finance, energy, investments and automobile sectors are run by the state.

There are more than a few emerging countries that have drawn inspiration from China’s economic model. We must stop the growth of state capitalism, and bolster fair competition in markets. The TPP is a powerful means for this cause.


TPPで国家資本主義の拡大に歯止めを
貿易と投資の新しいルールづくりを目指す環太平洋経済連携協定(TPP)交渉で、国営企業の改革が焦点になっている。アジアの新興国や途上国を中心に、政府の保護によって民間企業より有利な競争条件を得ている例が多く、市場競争に基づく自由な事業活動が阻まれる心配があるためだ。
アジア諸国での国営企業の改革は、日本にとり重大な関心事である。世界の経済成長の中心となったアジア地域で、日本企業は投資を増やしていく必要がある。
 進出先の市場で国営企業が幅を利かせていては、参入企業は技術力やビジネスモデルを生かして公正に競争できない。これは非関税障壁の弊害の一つだ。このためTPP交渉を主導する米国は、ベトナムやマレーシアなどに国営企業の民営化を迫っている。
 この交渉目標は、日本の国益と一致する。これからの日本は輸出に頼るだけでなく、世界への投資で稼がなければならない。TPP交渉への参加を急ぎ、国営企業の改革を含めて投資のルールづくりを米国とともに進めたい。
 気になるのは、日本自身の国営企業の民営化だ。民主、自民、公明の3党が国会に提出した郵政民営化法の改正案は、ゆうちょ銀行とかんぽ生命保険の株式の完全売却を努力規定とした。金融・保険分野で公正な競争条件が確保できるかどうか不透明な面がある。
 米政府内には、郵政法案の中身に失望し、日本のTPP交渉参加を疑問視する声が出ている。郵政法案の記述とTPPの理念が矛盾するとみているからだ。郵政法案ひとつで、日米が市場競争の価値観を共有できないと早計に判断されるのでは困る。
 こうした懸念に対し、日本政府は、公正な競争確保を目指す方針を十分に説明すべきだ。米国から要求されるから譲歩するのではなく、日本の国益を考えて民営化を追求していく必要がある。
 国営企業などを通して政府が市場の主要な参加者となる仕組みは「国家資本主義」とも呼ばれる。中国がその代表例で、金融、エネルギー、貿易、自動車などの有力企業の大半は国営だ。
 中国の経済モデルを手本に、国営企業の優遇策を採る新興国は少なくない。このような国家資本主義の拡大を抑え、公正な市場競争を重視する流れを強めていかなければならない。TPPはそのための有力な手段だと考えるべきだ。
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