As talks to conclude a Trans-Pacific Free Trade Agreement (TPP) have recently progressed , the question of whether Japan should be added to the present list of eleven (United States, Canada, Mexico, Peru, Chile, New Zealand, Australia, Singapore, Malaysia, Brunei, Vietnam) participants and thus of whether it can meet reasonable criteria for open markets has come to the fore. A major obstacle is the structure, practices, and industrial policies associated with the Japanese auto industry. It is perhaps the foremost example of what has become known as the "Closed Open Market" phenomenon. In technical terms the market is completely open with no tariffs or quotas. In reality, the Japanese market, with 6.6 percent, has the lowest penetration of imports and foreign brand autos of all the major auto markets, and this is almost exclusively in the very high price luxury segment. Indeed, Hyundai, the Korean auto maker that is currently perhaps the world?s most competitive producer, has abandoned the Japanese market on the grounds that its non-tariff barriers are so great as to make investment nothing but a waste of money and time. In terms of trade negotiations, this Closed Open Market phenomenon means that Japan can negotiate secure in the knowledge that no matter what formal concessions it makes, imports will not rise. In the particular instance of the TPP, this is all the more the case because the negotiating agenda does not cover the intervention in international currency markets, various investment subsidies, and anti-competitive market structures and practices that cause the major distortions of free market trade flows.