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The Trans-Pacific Partnership and Japan’s Agricultural Trade

Author

Listed:
  • Schmitz Andrew
  • Zhu Manhong

    (Department of Food and Resource Economics, University of Florida, Gainesville, FL 32611-0240, USA)

  • Zilberman David

    (Berkeley and Giannini Foundation, University of California, ‎Oakland, CA, USA)

Abstract

The Trans-Pacific Partnership Agreement (TPPA) was concluded on October 5, 2015, by twelve countries that include the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Under the TPPA, Japan will partially liberalize its five politically sensitive agricultural subsectors: (1) rice, (2) beef and pork, (3) wheat and barley, (4) sugar, and (5) dairy, none of which contain any genetically modified (GM) content. Under full liberalization, Japanese producers in these subsectors will lose (e. g., rice producers will lose over $6 billion and beef producers will lose over $2 billion). Excluding butter, the trade impact of the TPPA on the Japanese government will be negative because of tariff and resale-revenue losses. Our empirical results provide the full effects of complete trade liberalization. However, because the TPPA negotiations of 2015 resulted in only partial trade liberalization, our results can be easily modified to deal with the degree to which trade distortions are removed for each of the above agricultural subsectors. In terms of producers who lose from trade liberalization, the Japanese government will provide compensation.

Suggested Citation

  • Schmitz Andrew & Zhu Manhong & Zilberman David, 2017. "The Trans-Pacific Partnership and Japan’s Agricultural Trade," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(1), pages 1-18, January.
    • Handle: RePEc:bpj:bjafio:v:15:y:2017:i:1:p:18:n:7
    DOI: 10.1515/jafio-2017-0001
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trans-Pacific Partnership; GMOs; Japan; agricultural trade; trade liberalization; welfare impact; cost of protection;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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