1. Will membership in TPP really help Japan?
Group 5
Day 4

2. Potential Benefits for Japan
What is TPP?
Results of TPP negotiations - Japan
Potential Benefits for Japan
Membership is really going to help ?

3. TPP (Trans-Pacific Strategic Economic Partnership)
2013
2008
1 - Access to 800 million people with a combined GDP of
US$ 27.5 trillion (It represents roughly 40% of global economy).
2 - Membership is open to all APEC economies and in the future non-APEC countries may be considered (Interested: Korea, Taiwan, Indonesia, Thailand and Philippines).

4. TPP (Trans-Pacific Strategic Economic Partnership)
A comprehensive FTA comprising binding rules and disciplines and market access commitments, important in both economic and geopolitical terms.
TTP Goals: enhance trade and investment, promote innovation, economic growth and development, and support the creation and retention of jobs.
Features:
In October, 2015 after 5 years of negotiations (19th round of formal meetings) TPP members reached agreement and have signed the Agreement in February 4, 2016.
Every TPP member is in the internal process to ratify the Agreement, so is expected to take effect in two years (the end of 2017 or in the beginning of 2018).
1. Comprehensive market access
2. Fully regional agreement
3. Cross-cutting trade issues
4. New trade challenges
5. Living agreement

5. 30 Chapters in the TPP Agreement
Standard Legal Chapters
Traditional Trade Issues
New Issues
1 – Initial Provisions
27 – Administrative & Institutional Provisions
28 – Dispute Settlement
29 - Exceptions
30 – Final Provision
2- Market Access
3 – ROOs
4 – Textiles and Apparel
5 – Customs Administration
6 – Trade Remedies
7 – Sanitary and Phytosanitary
8 – Technical Barriers to Trade
9 – Investment
10 – Cross Border Services
11 – Financial Services
12 – Temporary Entry
13 – Telecommunications
14 – E-Commerce
15 – Government Procurement
16 – Competition Policy
18 – Intellectual Property
Rights
21 – Cooperation and Capacity
Building
22 – Competitiveness /
Business Facilitation
17 – Competition (SOE)
19 – Labour
20 – Environment
23 – Development
24 – SMEs
25 – Regulatory Coherence
26 – Transparency and Anti
Corruption

6. Results of negotiations
Will
Japan benefit from TPP?
Results of negotiations
1. Agriculture
2. Industrial Products
3. Services

7. Results of TPP negotiations - Japan
Agriculture:
1. Agreed to liberalize the agriculture sector so Japan will have to abolish tariffs on 81% of 2,328 agricultural, forestry and fisheries imports and for these 5 “untouchable” items the liberalization will be gradually (Rice, beef , pork, dairy products and sugar).
2. Rice: Export the US and Australia (TRQ)
Industrial Products:
1. The tariff of car export to US, Canada, Vietnam is downgraded.
2. Cancel tariff of 95% items immediately, 100% open the market after 16 years.
3. Commitment to open items of textiles, footwear, leather.
Services: some items are agreed to be exclude (Social Welfare, Government Property, etc.)

8. Final Tariff Liberalization (%) Immediate Tariff Elimination (%)
Total
Final Tariff Liberalization (%)
Immediate Tariff Elimination (%)
87.36%
99.27%
Australia
Brunei
Canada
Chile
99.9%
93.0%
100.0%
92.0%
98.9%
94.9%
93.3%
Japan
Malaysia
Mexico
New Zealand
95.0%
83.6%
84.7%
99.0%
77.4%
99.6%
94.6%
Peru
Singapore
United States
Viet Nam
99.4%
80.7%
89.8%
99.8%
84.2%

9. Potential Benefits for Japan
Deregulation in trade of goods and services and foreign investment can contribute to economic growth in Japan.
Regulations over foreign companies entering markets have been relaxed, making it easier for Japanese companies to expand overseas o enter new markets.
Reforms will be needed across a number of industries in Japan, in order to increased chances of success.
Completion of the TPP gives Japan force to quickly conclude trade agreements with other countries.
臺灣第二輪談判

10. Membership is really going to help ?
According to WB Japan, will enjoy 23% export boost from TPP.
Japan’s economic sectors that will benefit the most are:
Electronics
Agriculture
Source:

11. Membership is really going to help ?
Source: World Bank
臺灣第二輪談判

12. Regional Economic Blocks in the world
NAFTA(North American Free Trade Area) (GDP27%)
Set up in 1994, including USA, Mexico, Canada
EU(European Union)(GDP24%)
Set up in 1993, 28 members
Pacific
Ocean
Atlantic
Ocean
Pacific
Ocean
ASEAN(Association of Southeast Asian Nations)：
Set up in 1961, 10 members
Still promoting:
1. TPP (Trans-Pacific Strategic Economic Partnership)(GDP36%)
2. RCEP (Regional Comprehensive Economic Partnership)(GDP29%)
3. TTIP (Transatlantic Trade and Investment Partnership)(GDP46%)
4. APEC (Asia-Pacific Economic Cooperation)(GDP48%) 21 members