Is TPP Good For Japan?
by 020 Koki on December 20, 2015 - 6:06am
Is TPP good for Japan?
Trans-Pacific Strategic Economic Partnership Agreement, which is called “TPP”, was started among Singapore, Brunei, Chile and New Zealand in 2006. Japan has participated in it since 2013, and now 11 countries has taken part in it. To be honest, I do not know anything at all about TPP. Is it good for Japan? Does we have merit points? I want to know the answer so that I will research its merit and demerit points. Then I would like to write my opinion about them.
Each country has strong points and weak points and it is difficult for them to improve their every points. However, if they share each strong points, and they make up for their weak points by free trade, they can get merits. For example, Country A has a weak point for “clothe”. On the other hand, Country B has a strong point for “clothe”, so Country B can help Country A. This is the typical trade in TPP. Therefore, each country can concentrate on their strong points. I think this is one of the merits of TPP.
We can get agricultural products which is cheaper than domestic from other countries, so Japanese farms will be greatly damaged by them and the number of farms will be decreasing. This is one of the big demerits for Japan. Another demerit for Japan is about deflation. Japan has the problem now. People can buy product at a low cost thanks to other countries, so Japanese products will not sell. Then deflation will proceed more than now. I think Japanese economy will be damaged because of it. Therefore, Japanese government must solve this big problem.
There are merits and demerits in TPP, so I cannot say whether Japan should keep joining in it or not.