http://www.bbc.co.uk/news/business-21799683
The TPP, the Trans-Pacific Partnership, is a proposed free trade deal currently being negotiated between 11 countries. Japan is now interested in joining this trade agreement but certain protests have been formed because they feel that it will be detrimental to a few sectors of the Japanese economy such as agriculture & farming. Having said that, the Prime Minister thinks that this is a key move for Japan to make because most of the other Asian economies are moving towards a more open economy, and as we've learnt in class being in an open economy encourages a lot more economic growth which will be very beneficial for Japan!
The economic growth will certainly be of help to Japan. In addition, Japan is currently suffering from a very significant trade deficit and a rapidly depreciating Yen. This trade partnership could go a long way in reducing the trade deficit and inducing the level of inflation that Japan needs.
ReplyDeleteThe effect that Japan could face if they join the TPP would hurt there agriculture production, but it would actually help consumers in the long run. Agriculture products, especially fruits, are extraordinarily expensive in Japan. Opening up the market to agricultural imports will drive down prices and make products like fruit more affordable.
ReplyDelete