Japan’s Lower House Ratifies TPP as US Elections Complicates Outlook

Japan’s House of Representatives voted to ratify the Trans-Pacific Partnership trade agreement and passed a related bill Thursday, despite diminishing prospects for the ratification of the pact by the United States following Donald Trump’s victory in the presidential election.

Following the vote during a plenary session of the Diet’s lower house, the decision will automatically stand after 30 days, even if the House of Councillors, or upper house, does not vote in favor.

The upper house steering committee is expected to schedule a plenary session for Friday, while the ruling parties are said to be considering an extension of the current extraordinary Diet session, set to end Nov. 30.

The coalition of Prime Minister Shinzo Abe’s Liberal Democratic Party and the Komeito party has rushed to get the pact approved during the current session, with Abe aiming for Japan to be the first of the 12 Pacific Rim signatories to ratify it.

The ruling parties were able to pass the TPP bills using their lower house majority, despite protests by opposition lawmakers who argued the vote was inappropriate given the U.S. political outlook and farm minister Yuji Yamamoto’s gaffes related to the matter.

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