Japan Considering Removing Tariff Exemptions on Farm Products

The Japanese government has started to consider reducing or removing tariffs on some items that fall under five key farm product categories — rice, wheat, beef and pork, dairy products and sugar — in ongoing negotiations for the Trans-Pacific Partnership (TPP) free trade pact.

The government will try to secure an agreement in the free trade talks by expanding imports of farm products in its so-called “sacred areas” from TPP partners. But Japan is faced with high-level demands from its counterparts as many countries taking part in the TPP negotiations have been pressing Japan to abolish tariffs on all products including rice. Japan will explore the possibility of reaching a compromise with other countries during talks among chief TPP negotiators due to open in Salt Lake City, Utah, on Nov. 19. Nevertheless, Japan is expected to go defensive in the face of a hardline stance taken by the United States and other countries.

In past negotiations, the United States urged Japan to eliminate tariffs on all products except rice. Most other negotiating countries, including Singapore and New Zealand, demanded Japan scrap tariffs on all products including rice. But Japan rejected both moves.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza