LDP Blocks Agricultural Reform

As a collateral damage of death of Trans-Pacific Partnership, Liberal Democratic Party gave up its effort for reform of agricultural cooperatives. Newspapers reported on Friday that a project team in the party concluded its plan for the reform, which set no time limit to achieve it. One important political agenda of Shinzo Abe administration faced bitter setback.

Newspapers revealed a draft of the team for reform of National Federation of Agricultural Cooperative Associations, or Zen-noh, which included comprehensive revision of its mission and structure. Although a governmental commission for deregulation demanded Zen-noh of its fundamental restructuring, LDP lawmakers with interest in agricultural voters firmly opposed the reform.

While the commission required Zen-noh’s purchasing project, in which Zen-noh would intervene farmers’ purchase of machines or fertilizers, to be shrunk within a year, LDP project team dropped the time limit from the draft. To the proposal of halving the number of financial sections in Zen-noh within three years, LDP lawmakers also answered no. Plans for reforming management were left to Zen-noh’s voluntary efforts.

The commission regarded Zen-noh’s inherent role as promoting sales of agricultural products. For its purpose, it wanted Zen-noh to simplify its organization. LDP proposed that simplification through moving of human resource from one section to another. Procedure of cost-cut will be checked by Ministry of Agriculture, Forestry and Fisheries, which is closely connected to farmers’ interest.

Abe has diligently been promoting agricultural cooperatives reform. “Reform of Zen-noh is cornerstone of agricultural reform. I need fundamental reform with a mind of establishing new organization,” told Abe in the meeting of the governmental commission. Chairman of Agriculture, Forestry and Fisheries Section in Policy Research Council, Shinjiro Koizumi, was also active for the reform. However, LDP lawmakers made collective rebellion against reforming power.

It is apparently a consequence of Trump shock. United States President-elect Donald Trump declared to kill TPP on the first day of his presidency. While Abe thought agricultural reform is indispensable for introducing TPP to Japan, that agenda lost its cause. Strategy of Abe administration to promote Abenomics through the free trade framework was blocked by U.S. Lawmakers in LDP being worried about Abe’s determination to agricultural reform revitalized. Power balance between Abe and LDP may face little change.