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ECONOMY > Trade

U.S. withdrawal from TPP to require drastic review of TPP budget allocations

  • November 23, 2016
  • , Tokyo Shimbun , p. 3
  • JMH Translation

With President-elect Donald Trump announcing the U.S.’s withdrawal from the TPP, the government will have to undertake a drastic review of its 1.19 trillion yen budget allocations for TPP-related spending (including over 480 billion yen that has already been spent), since the rationale for the allocation of this enormous amount of tax money will no longer be tenable.

 

The following is the breakdown of the TPP allocations:

 

FY15 supplementary budget

Total 487.5 billion yen

Preparing business environment for overseas ventures

22.3 billion yen

Branding, enhancing “earning power” in the regions

105.3 billion yen

Conversion to “aggressive” agriculture

312.2 billion yen

Initial FY16 budget

Total 158.2 billion yen

Promotion of exports of contents, technology, etc.

13.1 billion yen

Promotion of improved productivity through cooperation between companies

24.5 billion yen

Food security and safety

2.9 billion yen

FY16 supplementary budget

Total 544.9 billion yen

Support for exploring new markets and other efforts

85.3 billion yen

Branding, enhancing “earning power” in rural areas

90.7 billion yen

Conversion to “aggressive” agriculture

345.3 billion yen

Total

1.1906 trillion yen

 

The justification for the above allocation of over 1 trillion yen is the notion that the TPP agreement will go into force. However, ratification by Japan and the U.S., the two biggest economies among the TPP participants, is indispensable for the TPP accord to enter into force. There were concerns that ratification by the U.S. Congress would run into difficulty even before the election. The government is likely to be criticized for its overoptimistic assessment of the situation. (Abridged)

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