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TPP, RCEP, and Japan's Agricultural Policy Reforms

Author

Listed:
  • Hiro Lee

    (Osaka School of International Public Policy, Osaka University)

  • Ken Itakura

    (Graduate School of Economics, Nagoya City University)

Abstract

In this paper we compare welfare effects and the extent of sectoral adjustments under the proposed Trans-Pacific Partnership (TPP) agreement and the Regional Comprehensive Economic Partnership (RCEP) accords using a dynamic computable general equilibrium (CGE) model from the perspective of Japan. The ambitious goals of both organizations, as well as overlapping membership, make comparisons of different scenarios particularly intriguing. Another objective of this paper is to examine the effects of Japan's agricultural policy reforms on its agricultural output. If agricultural reforms, such as phasing out gentan and consolidation of agricultural land, lead to an improvement in productivity of agricultural sectors, then the extent of output contraction of agricultural and processed food sectors in Japan would be reduced significantly except for dairy products. This suggests the importance of carrying out agricultural reforms in Japan for region-wide trade accords.

Suggested Citation

  • Hiro Lee & Ken Itakura, 2014. "TPP, RCEP, and Japan's Agricultural Policy Reforms," OSIPP Discussion Paper 14E003, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:14e003
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    References listed on IDEAS

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    Cited by:

    1. Mr. Diego A. Cerdeiro, 2016. "Estimating the Effects of the Trans-Pacific Partnership (TPP) on Latin America and the Caribbean (LAC)," IMF Working Papers 2016/101, International Monetary Fund.
    2. Badri G. Narayanan & Sangeeta Khorana, 2017. "Mega-regional trade Agreements: Costly distractions for developing countries?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-18, December.
    3. Nobuhiro Hosoe & Yuko Akune, 2019. "Can the Japanese Agri-food Sectors Survive by Promoting their Exports?:A General Equilibrium Analysis with Farm Heterogeneity and Product Differentiation," GRIPS Discussion Papers 19-06, National Graduate Institute for Policy Studies.
    4. Kikuchi, Tomoo & Yanagida, Kensuke & Vo, Huong, 2018. "The effects of Mega-Regional Trade Agreements on Vietnam," Journal of Asian Economics, Elsevier, vol. 55(C), pages 4-19.
    5. World Bank Group, 2016. "Global Economic Prospects, January 2016," World Bank Publications - Books, The World Bank Group, number 23435.
    6. Peter A. Petri & Michael G. Plummer, 2016. "The Economic Effects of the Trans-Pacific Partnership: New Estimates," Working Paper Series WP16-2, Peterson Institute for International Economics.

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    More about this item

    Keywords

    TPP; RCEP; CGE model; Japan; agricultural policy reform;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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