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ECONOMY > Trade

The reworked TPP deal worth total GDP of 1,200 trillion yen

  • November 12, 2017
  • , Yomiuri , p. 3
  • JMH Translation
  • ,

The reworked TPP agreement is mostly an extension of the previous TPP trade deal, retaining high standards in trade and investment, and continues to be Japan’s main pillar of its growth strategy.

 

Depending on the destination, between 70- to 100% of tariffs on Japanese exports will be abolished immediately with the final rate of tariff elimination to be 99- to 100% when including agricultural products, while Japan’s import tariff abolition rate is to be 95%.

 

The government had estimated a 2.6% boost to its GDP with the previous TPP agreement.

 

Although the economic effects of the revised agreement have not been announced yet, the total GDP of the 11 signatories is approximately 1,200 trillion yen, double that of Japan’s, causing many to be hopeful of increasing exports of manufactured goods such as automobiles and agricultural products and expanded business opportunities in the service sector.

 

The aim of the TPP is to enhance growth among member nations in the Asia-Pacific region by encouraging trade of goods and services through establishment of high-level trade standards. Its clauses govern not only abolition of tariffs but also dispute settlements when foreign companies receive unjust treatment or requests for technology transfer from local governments, making a safe environment for companies to enter into foreign markets.

 

Yoshimitsu Kobayashi, chair of the Japan Association of Corporate Executives (Keizai Doyukai), welcomed the agreement, stating, “Although some clauses have been suspended, this is a big step forward for an open economic block.”

 

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