President Barack Obama's push to pass the Trans-Pacific Partnership (TPP) trade deal in 2016 was resisted by the 2016 presidential candidates in both major parties. Hillary Clinton and Donald Trump opposed the deal, arguing that it would hurt American workers.
Japan’s Lower House of parliament has passed the controversial TPP free trade agreement, despite the fact the deal is likely doomed after Donald Trump’s US presidential election victory.
What the TPP Means for Japan? Why it is so important?
This trade agreement is central to U.S. President Barack Obama’s “rebalance” to Asia, because it would allow the U.S. and U.S. allies and partners to establish the “rules of the road” for free and fair trade in the most economically dynamic region of the world. In addition to strategic and intangible benefits, Japan also profits concretely from the TPP.
First of all, regulations over foreign companies entering markets have been relaxed, and this will make it easier for Japanese companies to expand overseas into new opportunities.
Second, the auto industry will benefit from a phase-in in the reduction of tariffs on their exports. Also, they will be allowed to buy more parts for their products from Asia, including, significantly, from countries not in the TPP.
Third, the lowering of tariffs on farm, dairy, and other goods will help lower the costs of these items to Japanese consumers.
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