An article in The Japan Times discusses the plan that Japanese convenience stores have to expand internationally. Under the new TPP deal, deregulation of laws for convince stores will allow for substantial growth in many countries. Japan looks to expand in nations like Malaysia and Vietnam and invest in local stores. How will this affect local businesses in these expanding markets? Will Japan find success? What types of challenges face in this new business expansion?
In a January 8th article in the Nikkei Asian Review, It discusses the predicted implications for the 12 member TPP alliance. In a positive projection, all members GDP will increase by an average of 1.1%. Southeast Asian countries will benefit the most with Vietnam projected at a 10% increase, Malaysia at an 8% increase and Brunei with 5%. This all bodes well for Japan as many of these countries are looking to expand business opportunities for Japanese companies. How will Japan’s GDP be affected? What type of business will grow for Japan in Southeast Asia? Will these Southeast Asian countries really grow this much under the new TPP deal?
In an article in, The Japan Times, the Abe administration estimates that the new TPP deal will boost the country’s GDP by ¥14 trillion. This new figure represents a significant increase from the previous projection of ¥3.2 trillion. This figure will be presented to a special group designated to review the impact of the new deal. The reason for the increase is the emphasis that has been put on supporting local Japanese farmers to compete with international products.
In a recent article in the, Nikkei Asian Review, ¥110 billion that will be set aside to help Japanese farmers is discussed. Under the new TPP deal, tariffs on beef imports will be eliminated and Japanese farmers will face stiff competition from foreign beef products. In an effort to help farmers, using this money, Japan intends to invest heavily on new technology, distribution channels, and markets.
According to an article in The Financial Post, Canadian beef exports are set to receive a huge boost in Japan under the new TPP. Canadian Beef exporters have dealt with much adversity in the past decade and their growth in foreign markets have suffered. Particularly, the Canadian mad cow disease and BSE scares have significantly stunted the market’s expansion. Exporters are hopeful that under the new TPP beef exports could double and may even triple. Japan is set to reduce its tariffs on beef from 38.5% to nine percent over the next 15 years. This huge reduction in tariffs along with Canada’s renewed emphasis on expanding its foreign beef market could spell success that the industry has never before seen. In what ways can Canada distance itself from its previous bouts with mad cow disease? What effect will Canada’s entrance into the Japanese beef market have on U.S. exports? Will Japan be receptive to Canadian beef?
In a recent article in the Japan Times, the topic of insurance for Japanese farmers is discussed. With the new TPP deal, cheap imports are set to flood the Japanese market. Everything from produce to beef to cattle feed will become much cheaper and Japanese farmers fear that they will be put out of business. The Japanese government is looking to set up insurance for these farmers and protect them from these low prices. Is it wise to have the government step in and save the farmers? Why did Japan agree to these conditions under the TPP when they just have to use their own money to bail out the farmers? How will the Japanese farming industry evolve to these new conditions?
How the Japanese economy will have to adapt with the new TPP deal in place, is the topic of an article in the Japan Times. With reductions in tariffs, an emphasis on free trade, and more imports set to come into Japan, the country is readying itself to “brand,” certain global commodities as “Japanese.” To compete with other countries similar products, Japan will have to make the consumer think that the Japanese version is the superior choice. How will competition created by increased free trade hurt the Japanese economy? How will it help the economy? Are Japanese products superior enough to maintain higher prices?