Fourteenth International Conference on Interdisciplinary Social Sciences

Abstract

This research paper examines the Trans-Pacific Partnership’s (TPP11) implications on the rural sector of Japan, the treaty’s largest member and one of the most vocal proponents within the TPP11 trade community. The treaty eliminates nearly 99% of existing tariff lines amongst member states, promoting a more cohesive and streamlined alignment of international trade standards and regulations between member states. Utilizing the Heckscher-Ohlin theory and Linder hypothesis, this paper concludes that certain price-sensitive crops such as wheat, dairy, and tropical fruits, which lack a loyal consumer base for its domestic production, are expected to take significant hits from the entry of foreign competition. Conversely, major goods sectors such as rice, beef, pork, and all other produce will be impacted is relatively minimal due to consumer preferences for high-quality goods with significant product differentiation. Additionally, integral to the future growth of Japanese agriculture will be the supplementary policies and shift in agricultural policy henceforth, and that only when combined with the significantly higher level of market access provided by the TPP11 can Japanese agriculture and its contributions to the economic revitalization of rural communities begin to reverse the contractions it has felt over the last 30 to 40 years. The conclusions reached in this study will aid in broader investigations into how the slowly fading agricultural sectors of developed economies can implement policy that both caters to the era of globalized trade while supporting those whose economic and social livelihoods are at risk.