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Japan: Trade pact with U.S. will raise GDP 0.8%

Christian Fernsby |

KEY POINTS
  • The government of Japan predicts the creation of some 280,000 jobs
  • The output of agricultural and fishery products will likely decrease up to 110 billion yen
  • Domestic output of beef is forecast to fall up to 47.4 billion yen

A bilateral trade agreement Japan recently signed with the United States is estimated to push up the Asian country's gross domestic product around 0.8 percent, the Japanese government says.

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Topics: JAPAN    TRADE    U.S.   

If calculated in terms of Japan's GDP in fiscal 2018, the estimate amounts to about 4 trillion yen ($37 billion). The government predicts the creation of some 280,000 jobs as a result of the trade deal.

It said the output of agricultural and fishery products will likely decrease between 60 billion and 110 billion yen as cheaper U.S. imports, including beef and pork, are expected to enter the Japanese market.

Domestic output of beef is forecast to fall up to 47.4 billion yen, while that of dairy products such as cheese is projected to drop up to 24.6 billion yen.

Output of pork is likely to decline 21.7 billion yen.

The bilateral pact will enable U.S. farmers to enjoy the same treatment as their competitors in Australia, Canada and New Zealand, all of which are members of the Trans-Pacific Partnership, an 11-nation free trade pact that Washington withdrew from in 2017 under President Donald Trump.