Blog#5: TPP

Hello. It’s Marumi. I'm sorry for the late posting.

In news, TPP is often reported these days. I just know that it is a trade treaty which let us trade without tax within the countries in the treaty. However, I don’t know exactly what it is, so I’m going to find out what TPP is.

First of all, do you know what words are abbreviated as TPP?

It is Trans-Pacific Strategic Economic Partnership Agreement. (In Japanese, 環太平洋戦略的経済連携協定) Originally, it was signed in 2005 by these countries : Brunei, Chile, New Zealand and Singapore. After them, Australia, Malaysia, Peru, United States, and Vietnam joined the treaty ,and now TPP is valid in 9 countries.

It is a multilateral free trade agreement in the 9 countries. It is aiming to make the tariff zero percent by 2015. The things traded without tariff are industrial and agricultural products, finance and medical service, and even right like intellectual property.

This is the map of countries which take part in and negotiating for TPP.

Leaders of TPP member states and prospective member states at a TPP summit in 2010

In Japan, it has been a big problem whether we should join it or not. The opinion of the politicians and public people was divided to pros and cons.

Now, let’s think about the merit and demerit. (I couldn’t find authentic website as a reference, but this seems reliable compared to others. ) This is the website I looked at.
Pros 

Some economists say, ‘It’s the only way to solve the problems of agriculture to join TPP.’ In Japan, the number of people who are working for farming industry is decreasing and they are mainly old people. The lack of successors is a serious problem, and we don’t know if we can continue self-sufficiency. If we join TPP, we can import foods in cheaply. In addition, cheap and tasty rice like Koshihikari from California will be imported. It is said that the price of Gyu-don（牛丼）will be less than 200 yen. It may be good for consumers.
Cons

Tariffs exist in order to protect domestic products. If we join TPP, we can’t protect them and workers will lose their jobs. Especially, agriculture will be damaged badly. According to the Ministry of Agriculture, Forestry and Fisheries of Japan, the value of agricultural and fishery products will decrease by 4 trillion fifty seven million yen (4兆5,700億円)and 3 million five hundred nine thousand （350万9000人）will lose their job. The food self-sufficiency now is 40 percent, but it will be 13 percent.
My opinion

From this website, I can’t be positive to TPP. Even if the price of food declines, it may destroy Japanese industry. Companies have to compete to make the cost lower and more people will lose their jobs and even the quality of products may worsen. Moreover, it will be impossible to continue the agriculture in Japan. Even now, farmers are suffering from lack of successors and low income. I personally would like to buy Japanese high quality products, but if I don’t have money, I have to rely on cheaper products. Since the economy is in depression, people will tend to buy cheaper things.

I have concentrated only on the agriculture. However, if I look for more information about other industries, the situation may be different. So, please don’t think quickly that TPP is bad, but research more and have your opinion. It’s a controversial issue in every industry, so that’s why people’s opinions are divided.

Thank you for reading.