IDEAS home Printed from https://ideas.repec.org/a/sae/mareco/v9y2015i4p362-378.html
   My bibliography  Save this article

Potential Impacts of an Exclusionary Trans-Pacific Partnership Agreement on Agriculture in the US and Japan

Author

Listed:
  • Jada M. Thompson

    (Jada M. Thompson is a graduate student at the Department of Agricultural and Resource Economics, Colorado State University, 1172 Campus Delivery, Fort Collins, CO 80523-1172, US, email: Jada.Thompson@colostate.edu)

  • Amanda M. Leister

    (Amanda M. Leister is Assistant Professor at the Department of Agricultural and Resource Economics, Colorado State University, 1172 Campus Delivery, Fort Collins, CO 80523-1172, US, email: amanda.leister@colostate.edu)

Abstract

The Trans-Pacific Partnership (TPP) is a free trade agreement that hopes to eliminate all tariff and non-tariff trade barriers between 12 participating countries. Japan, the fourth-largest trading partner for the United States, is a significant player in the negotiations. Due to cultural and historical significance it is expected that Japan will ask for exclusions on agricultural products, limiting the overall effectiveness of a fully liberalised agreement. Using a computable general equilibrium modelling framework across varying scenarios, we show the difference between the full liberalisation and potential exclusionary scenarios. Estimates show that a 25 per cent reduction in import tariffs on agricultural commodities in Japan results in a difference of net welfare benefits equal to –USD 7 billion, emphasising the importance of these concessions. JEL Classification: F14, F15, Q17

Suggested Citation

  • Jada M. Thompson & Amanda M. Leister, 2015. "Potential Impacts of an Exclusionary Trans-Pacific Partnership Agreement on Agriculture in the US and Japan," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 9(4), pages 362-378, November.
    • Handle: RePEc:sae:mareco:v:9:y:2015:i:4:p:362-378
    DOI: 10.1177/0973801015596855
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0973801015596855
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0973801015596855?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    2. Megumi Naoi & Shujiro Urata, 2013. "Free Trade Agreements and Domestic Politics: The Case of the Trans-Pacific Partnership Agreement," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(2), pages 326-349, December.
    3. Petri, Peter A., 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration," 2012: New Rules of Trade? December 2012, San Diego, California 143184, International Agricultural Trade Research Consortium.
    4. Peter A. Petri & Michael Plummer, 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration: Policy Implications," Policy Briefs PB12-16, Peterson Institute for International Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sheng Lu, 2018. "What Will Happen to the US Textile and Apparel Industry if the NAFTA Goes?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(2), pages 113-137, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hirokazu Akahori & Daisuke Sawauchi & Yasutaka Yamamoto, 2017. "Measuring the Changes of Greenhouse Gas Emissions Caused by the Trans-Pacific Partnership," Sustainability, MDPI, vol. 9(5), pages 1-12, April.
    2. Lee, Hiro & Itakura, Ken, 2018. "The welfare and sectoral adjustment effects of mega-regional trade agreements on ASEAN countries," Journal of Asian Economics, Elsevier, vol. 55(C), pages 20-32.
    3. Joseph McKinney, 2014. "The Changing Global Economy: Roles Of The United States And The European Union In The Evolving Context," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 57-68.
    4. Van Ha, Pham & Kompas, Tom & Nguyen, Hoa Thi Minh & Long, Chu Hoang, 2017. "Building a better trade model to determine local effects: A regional and intertemporal GTAP model," Economic Modelling, Elsevier, vol. 67(C), pages 102-113.
    5. Wainio, John & Dyck, John & Meade, Birgit Gisela Saager & Mitchell, Lorrarine & Zahniser, Steven & Arita, Shawn & Beckman, Jayson F. & Burfisher, Mary E., 2014. "Agriculture in the Trans-Pacific Partnership," Economic Research Report 188429, United States Department of Agriculture, Economic Research Service.
    6. Aguiar, Angel & Walmsley, Terrie & Carrico, Caitlyn, 2013. "Improving the Representation of the U.S. in the MyGTAP Model with the Disaggregation of Labor and Households," Conference papers 332429, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Kawasaki, Kenichi, 2015. "The relative significance of EPAs in Asia-Pacific," Journal of Asian Economics, Elsevier, vol. 39(C), pages 19-30.
    8. Ken Itakura & Hiro Lee, 2023. "Should the United States rejoin the Trans-Pacific trade deal?," International Economics and Economic Policy, Springer, vol. 20(2), pages 235-255, May.
    9. Arvind Subramanian, 2013. "Preserving the Open Global Economic System: A Strategic Blueprint for China and the United States," Policy Briefs PB13-16, Peterson Institute for International Economics.
    10. Itakura, Ken & Oyamada, Kazuhiko, 2014. "Examining Trade Response of Armington-Krugman-Melitz Encompassing Module in a CGE Model," Conference papers 332513, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Hoang, Thi Minh Hang & Nguyen, Thi Lan & Nguyen, Hoang My Linh & Phung, Thi Yen & Tran, Thi Lien Huong, 2014. "Labour provisions in preferential trade agreements: potential opportunities or challenges to Vietnam?," Papers 917, World Trade Institute.
    12. To, Minh Thu & Lee, Hiro, 2014. "Assessing the impacts of deeper trade reform in Vietnam in a general equilibrium framework," MPRA Paper 82271, University Library of Munich, Germany.
    13. José R. Sánchez-Fung, 2016. "Reviewing Trade Policy in China During the Transition to Balanced Economic Growth," The World Economy, Wiley Blackwell, vol. 39(12), pages 1934-1946, December.
    14. Hosoe, Nobuhiro & Akune, Yuko, 2019. "Impact of Trade Liberalization on the Japanese Agri-food Sectors: A General Equilibrium Analysis with Farm Heterogeneity and Product Differentiation," Conference papers 333025, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Gabriela Ortiz Valverde & María de la Concepción Latorre Muñoz, 2016. "The effects of the TPP in the Mexican economy: CGE assessment," EcoMod2016 9385, EcoMod.
    16. Mireya Sol�s & Saori N. Katada, 2015. "Unlikely Pivotal States in Competitive Free Trade Agreement Diffusion: The Effect of Japan's Trans-Pacific Partnership Participation on Asia-Pacific Regional Integration," New Political Economy, Taylor & Francis Journals, vol. 20(2), pages 155-177, April.
    17. KAWASAKI Kenichi, 2014. "The Relative Significance of EPAs in Asia-Pacific," Discussion papers 14009, Research Institute of Economy, Trade and Industry (RIETI).
    18. Saputra, Wempi & Trilaksana, Ari Cahyo, 2013. "Toward ASEAN Economic Community: Revitalising Indonesia’s Position in Financial and Customs Cooperation," MPRA Paper 60823, University Library of Munich, Germany, revised 23 Jun 2014.
    19. Kenichi Kawasaki & Badri G. Narayanan & Houssein Guimbard & Arata Kuno, 2019. "Analysis of the Role of Tariff Concessions in East Asia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(2), pages 141-167, May.
    20. Fan He & Panpan Yang, 2015. "China's Role in Asia's Free Trade Agreements," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(2), pages 416-424, May.

    More about this item

    Keywords

    International Trade; Japan; TPP; GTAP; Agriculture; CGE;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:mareco:v:9:y:2015:i:4:p:362-378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ncaer.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.