Japan to Liberalize 95% of Tax by Concluded TPP Deal

The Japanese government has announced that it will eventually remove tariffs on 95 percent of 1908 items under the Trans-Pacific Partnership free trade agreement on Tuesday. It will be the highest liberalization rate which Japan has agreed on the economic partnership agreement (EPA). It is estimated to have a huge impact on the global market as the new Pacific Rim trade is covering 40 % of the world economy.

For agriculture, forestry and fisheries products, the new regulation will be in active straight after this deal for 51% of products which exclude products such as rice, beef and pork. It will eventually reach 81% of all products that liberalisation will take place.

For Japanese products to be exported, 99% of tax will be free for industrial products including cars and motorbikes. This will allow Japan to exports cars and other industrial products towards countries in the Pacific Ocean including U.S.A and Australia.

TPP is a proposed trade agreement among twelve Pacific Rim countries concerning a variety of matters of economic policy, and being discussed for more than 5 years. The TPP Agreements contains measures to lower trade barriers such as tariffs and establish an investor-state dispute settlement mechanism. 

Akira Amari who is the economic fiscal and regeneration from Japanese government of economy and financial said to reporters that "This concluded rate is balanced and fair overall. We managed to protect the five core products such as rice."
Out of 2328 agriculture, forestry and fisheries Products, the Japanese government has been working to protect five core product as "sanctuary" and these products were rice, beef, pork and dairy products.  

Tax to 30% of products which have no effects to domestic producers has been decided to be zero. For vegetables, the tax will be completely free for 100 major items.

For U.S.A, the tax for exporting a car from Japan, currently 2.5%, will be free in 25 years time. 2.5% of tax for buses will be free in 10 years and 25% for trucks will also be free in 30 years. For chemical products, a maximum of 6.5% of tax becomes free immediately after the conclusion.

News Source: Nikkei Shimbun