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US President Barack Obama assured ally Japan last week that Washington was committed to its defence, including of tiny isles at the heart of a row with China, but denied he had drawn any new “red line” and urged peaceful dialogue over the islands. Obama also urged Japan to take “bold steps” to clinch a two-way trade pact seen as crucial to a broad regional agreement that is a central part of the US leader’s “pivot” of military, diplomatic and economic resources towards Asia and the Pacific.

US and Japanese trade negotiators failed to resolve differences in time for Obama and Prime Minister Shinto Abe to shake hands on a deal at the summit, but the two leaders reported progress and ordered their teams to keep working.

Obama, on the start of a four-nation tour, is being treated to a display of pomp and ceremony meant to show that the US-Japan alliance, the main pillar of America’s security strategy in Asia, is solid at a time of rising tensions over growing Chinese assertiveness and North Korean nuclear threats.

“We don’t take a position on final sovereignty determinations with respect to Senkaku, but historically they have been administered by Japan and we do not believe that they should be subject to change unilaterally and what is a consistent part of the alliance is that the treaty covers all territories administered by Japan,” Obama said.

“This is not a new position, this is a consistent one,” he told a joint news conference after his summit with Abe, using the Japanese name for the islands that China, which also claims sovereignty over them, calls the Diaoyu.

“In our discussions, I emphasized with Prime Minister Abe the importance of resolving this issue peacefully,” Obama added.

International rules

Obama also said there were opportunities to work with China – which complains that his real aim is to contain its rise – but called on the Asian power to stick to international rules.

“What we’ve also emphasised, and I will continue to emphasise throughout this trip, is that all of us have responsibilities to help maintain basic rules of the world and international order, so that large countries, small countries, all have to abide by what is considered just and fair,” he said.

Some of China’s neighbours with territorial disputes with Beijing worry that Obama’s apparent inability to rein in Russia, which annexed Crimea last month, could send a message of weakness to China.

Obama told the news conference that additional sanctions were “teed up” against Russia if it does not deliver on promises in an agreement reached in Geneva last week to ease tensions in Ukraine.

The two leaders also agreed that their top trade aides, US Trade Representative Michael Froman and Japanese Economy Minister Akira Amari would keep trying to narrow gaps in their trade talks.

Abe has touted the TPP as key to “Third Arrow” reforms needed to generate growth in the world’s third-biggest economy, along with hyper-easy monetary policy and fiscal spending.

Both sides have also stressed that the TPP would have strategic implications by creating a framework for business that could entice China to play by global rules.

But the talks have been stymied by Japan’s efforts to protect politically powerful agriculture sectors such as beef, and disputes over both countries’ auto markets.

Pointing to restrictions on access to Japan’s farm and auto sectors, Obama said: “Those are all issues that people are all familiar with and at some point have to be resolved. I believe that point is now.”

Resource from Myanmar First Bilingual Business Journal May 1,2014