7. Gatekeeper’s Dilemma: Japan Facing CPTPP Applications from China and Taiwan

The Transpacific Partnership (TPP) trade agreement aimed to become the premier trade and investment rule-setter for the global economy, given the lack of progress with multilateralism via the WTO. While the TPP has stalled, its smaller version, the CPTPP, without the United States, is set to expand, with many countries worldwide submitting applications to join. However, this has presented Japan, the architect of the revived TPP, with a major dilemma. On the one hand, expanding CPTPP membership could benefit Japanese businesses and counterbalance China's practices, such as its use of State-Owned Enterprises and infringement of intellectual property rights. On the other hand, Japan and current CPTPP members must ensure that China's potential membership would not undermine the agreement's high standards. Japan's gatekeeper dilemma is expected to persist as discussions continue. With the US unlikely to participate at this stage, Japan must rely on “like-minded” partners and buy time.