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TPP, RCEP, and Japan's Agricultural Policy Reforms

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  • Hiro Lee

    (Osaka School of International Public Policy, Osaka University)

  • Ken Itakura

    (Graduate School of Economics, Nagoya City University)

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    Abstract

    In this paper we compare welfare effects and the extent of sectoral adjustments under the proposed Trans-Pacific Partnership (TPP) agreement and the Regional Comprehensive Economic Partnership (RCEP) accords using a dynamic computable general equilibrium (CGE) model from the perspective of Japan. The ambitious goals of both organizations, as well as overlapping membership, make comparisons of different scenarios particularly intriguing. Another objective of this paper is to examine the effects of Japan's agricultural policy reforms on its agricultural output. If agricultural reforms, such as phasing out gentan and consolidation of agricultural land, lead to an improvement in productivity of agricultural sectors, then the extent of output contraction of agricultural and processed food sectors in Japan would be reduced significantly except for dairy products. This suggests the importance of carrying out agricultural reforms in Japan for region-wide trade accords.

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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2014/DP2014E003.pdf
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    Bibliographic Info

    Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 14E003.

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    Length: 23 pages
    Date of creation: Mar 2014
    Date of revision:
    Handle: RePEc:osp:wpaper:14e003

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    Keywords: TPP; RCEP; CGE model; Japan; agricultural policy reform;

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    References

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    1. Ken Itakura & Hiro Lee, 2012. "Welfare Changes and Sectoral Adjustments of Asia-Pacific Countries under Alternative Sequencings of Free Trade Agreements," OSIPP Discussion Paper 12E005, Osaka School of International Public Policy, Osaka University.
    2. Peter A. Petri & Michael G. Plummer & Fan Zhai, 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration: A Quantitative Assessment," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6642.
    3. Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Microeconomics Working Papers 23216, East Asian Bureau of Economic Research.
    4. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
    5. Peter A. Petri & Michael G. Plummer & Fan Zhai, 2012. "ASEAN Economic Community: A General Equilibrium Analysis," Asian Economic Journal, East Asian Economic Association, vol. 26(2), pages 93-118, 06.
    6. Ken Itakura & Hiro Lee, 2012. "Welfare Changes And Sectoral Adjustments Of Asia-Pacific Countries Under Alternative Sequencings Of Free Trade Agreements," Global Journal of Economics (GJE), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 1250012-1-1.
    7. Chunding Li & John Whalley, 2012. "China and the TPP: A Numerical Simulation Assessment of the Effects Involved," NBER Working Papers 18090, National Bureau of Economic Research, Inc.
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