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TPP Put Japanese Farmers on Fire

By November 10, 2015 at 1:03 pm

Japanese farmers are on fire, livestock, rice cropping or otherwise, in the eve of an approaching tsunami of the Trans-Pacific Partnership (TPP) Agreement. There's no buts about it: the waves are coming our way and no sensible means in sight to push them back.

Take beef, for instance. The tariff on beef drops from 38.5% to 9% in the 16th year from now and in all likelihood beef prices will steadily fall in the process - meaning Japanese livestock farmers are already on a shaky ground which they know will crumble in a near future.

That also goes for rice cropping farmers or orchard owners alike. In some sectors, however, Japanese products have found a unique market of their own by virtue of  super quality. Some quality brands of apple, for instance,  beat other competitors in price as well.

That said, the situation calls for immediate countermeasures to buffer the approaching trader tsunami. The government is, in fact, studying an auxiliary legislation for partially subsidizing livestock farmers including pig farmers to cover part of the TPP-induced deficit. Livestock farmers are assisted to scale up their operation and tackle quality improvement.

On implementing TPP stipulations Japan will retain tariff on 70% of the vital items such as rice, beef, pork, etc. and will eventually lift tariff on 81% of the 2,328 agricultural items subject to negotiation. Further, TPP stipulates for a further negotiation on the tariff on rice, pork and other items not subject to tariff ban if and when so requested by the United States and other signatories 7 years after the agreements takes effect.

TPP is a double-edged blade. Japan's exports will visibly grow, so will GDP by 2.7 trillion yen in a decade. Japanese consumers can have more beef, fruits, milk products, etc. for less. Can they enjoy beef steaks though, knowing their farmers are dancing on a hot plate? 

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