TPP Discussion Starts

The Cabinet led by Prime Minister Shinzo Abe decided eleven bills related to Trans-Pacific Partnership and submitted them to the Diet on Monday. They included supportive measures for farmers or ranchers, who will be exposed to international competition brought by the free trade pact. It is inevitable for Abe administration to be criticized over not implementing the requirement of the Diet, which required maintenance of national interest.

The package of bills, also including approval of TPP agreement, will be discussed in special committee of each House starting in April. Abe administration expects the bills to pass the Diet in May, at least before Group 7 Summit in Ise-Shima, and to avoid being a major issue in the election of House of Councillors this summer.

The main talking point should be financial support for stockbreeders. With TPP agreement, tariff on beef will eventually be lowered from current 38.5% to 9% sixteen years later. Tariff on pork meat will be reduced from ¥482 per kilograms to ¥50 ten years later. Ranchers are deeply worried about the future of their business.

The bill of revised Stockbreeding Products Price Stabilization Act includes wider subsidy for the breeders. The national government will compensate 90% of deficit of stockbreeding business and it will be applied permanently. With Geographical Indications Act, the government will work for protecting the value of regional products, cooperating with other TPP members.

Revised Copyright Act will protect authors of novels for seventy years from the decease, extending the limit of current rule by twenty years. Violation will be punished with decision of law enforcement authority, not requiring voluntary indictment of the stakeholders. The government also protects the right for trademark, when it is damaged by falsely copied products. When a company promises correction of violation of Anti-trust Act, it can escape surcharge.

Nevertheless, farmers are skeptical on efficiency of those measures. Tariffs will be abolished on 30% in five crucial products: beef/pork, rice, wheat, dairy and sugarcane. To an explanation of the government that there would be no negative influence on rice, farmers argues that the calculation is baseless. TPP negotiation with high secrecy left them consistent frustration.

The government predicts ¥13 trillion of surplus in gross domestic products of Japan or 800 thousands of new jobs with new TPP rule for business in foreign countries. However, no persuasive evidence was give to the public. The way Japanese government in promoting policies is like demanding blank check to the people.