In a recent article on the website, The Cattle site, the impact of the U.S. waiting to approve the TPP deal on trade, is discussed. The only country to approve the TPP to date is Malaysia. Since there is no deal in place, tariffs on U.S. exports are extremely high. This is particularly crippling on the agricultural sector, as almost one third of gross agricultural income is through exports. The Japanese and other countries are concerned with what the U.S. will do with regard to the approving the TPP deal and are in a nervous “wait and see” mode. How can U.S. agriculture come out without too much loss? What will the U.S. ultimately do with respect to the proposed TPP deal? How will other countries respond to the U.S.’ actions?
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?
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?
In a recent article by Nikkei Asian Review, “Japan could concede 50,000 tons on rice to placate US”, Japanese and U.S. lawmakers tried to close the deal on rice. The U.S. is holding fast on its proposal to export 175,000 tons of duty free rice to Japan. Japan has set aside 70,000 tons of rice imports from the U.S. but is considering allocating 50,000 tons more in hopes to appease the U.S.. How will these trade talks affect the relationship between these two countries? How would the increase in rice imports affect rice prices in Japan? Can Japan and the U.S. come to a consensus?