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The following article was published in our article directory on November 18, 2010.
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Japan Participation in TPP's Hard Choices

Article Category: Business

Author Name: xia zihui

Japan proposed the idea to join after the TPP, a ripple, the Japanese public reacted strongly. Strong support for the majority of business people, and farmers and agricultural groups took to the streets if demonstrations on behalf of the interests of farmers or the ruling and opposition parties signed a letter, or members of Congress spoke strongly against it. Factions for and against the closely guarded, tit for tat.

Recently, Japan Naoto Kan, the Cabinet decided to start with the U.S. and nine trans-Pacific Partnership Agreement (TPP) member countries to Japan to join the issue of the "consultation", while Japan until next year whether to join the TPP further decision in June. This is Japan, after the parties after a fierce struggle to make hard choices is the product of compromise.

TPP is known as "the 21st Century," "high standard" free trade agreement, negotiations are currently participating in the United States, Australia, Peru, Vietnam, Malaysia, Singapore, Brunei, New Zealand and Chile, and 9 countries.

Early October of this year, Naoto Kan, Japan proposed the idea to join after the TPP, a ripple, the Japanese public reacted strongly. Strong support for the majority of business people, and farmers and agricultural groups took to the streets if demonstrations on behalf of the interests of farmers or the ruling and opposition parties signed a letter, or members of Congress spoke strongly against it. Factions for and against the closely guarded, tit for tat.

Business people that joining TPP can improve the competitiveness of Japanese companies to increase exports, is conducive to economic growth. Japan so far signed free trade agreements are mostly small, and the United States, European Union, China and other major trading nations there is no free trade agreements, such as TPP do not catch the express train on this tour may have been left after the danger of economic integration.

Agricultural sector is that joining the TPP means the bankruptcy of Japan's agriculture. Japanese agriculture is a highly protected industry, staggering import tariffs of agricultural products, rice was 777.7%, wheat is 252%, 328% sugar, butter is 360% beef is 38.5%. If the TPP members Zero Tariffs enter the Japanese market, Japanese agriculture will face disaster. No wonder, the same Japanese farmers and farm groups oppose the introduction of TPP.

Although the population of only 2.6 million Japanese agriculture, primary industries such as agriculture and mining accounted for only 1.5% of GDP, but the boundary of the unreasonable and the big farm groups, agricultural interests of the power of the Japanese parliament on behalf of the actual agricultural population seriously out of proportion, its power can not be discounted, a considerable part of the pressure members of Congress joined TPP Kan intention of giving up.

On the other hand, the reform of Japanese agriculture is not sustainable. Japan's agriculture relies heavily on government subsidies, low productivity, huge loss of young adults in 2010, Japanese farmers, the average age was 65 years old. These issues reflected in the price, that is, the Japanese agricultural odd expensive, the average price with the international market compared to 4 times more expensive rice, sugar, butter and beef you 3 times 2 times your wheat. In this sense, they are generally supportive of the general public joined the TPP.

Under Japanese pressure on the agricultural sector and the opposition, Naoto Kan, the Government had to make the process of joining the TPP appropriate adjustments. To take three-step approach: First, Go in the implementation of the "stick" approach, and TPP members to talk about it; the same time rectifying agriculture, designed to reduce shocks of trade liberalization measures in agriculture; Erhou Ming decide in June whether to join the TPP . However, the Japanese agriculture Humpty forces entrenched interest groups, could come within six months, an effective program, and the recognition by the Japanese farmers, adding TPP to resolve their concerns, but also the aftereffect say.

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