In mid-March 2013, Japanese Prime Minister Shinzo Abe joined the discussion about where business in Japan would be headed, opening up to the possibility of a trade pact with the United States and other Pacific countries. The Prime Minster threw his support into this union, despite the fact that he has an election just a few months away and there are plenty of people who are unsure of this pact. One such group is the Japanese farm lobby, who will face repercussions come election time.
Staying on the Cutting Edge of the World Business Trade Market
When it comes to global trade, especially for a country like Japan, you need to constantly be looking for a way to stay ahead of other nations that may be edging you out by providing cheaper exports. The Prime Minister spoke at the annual convention of the Liberal-Democratic Party in Tokyo just after announcing his plan to discuss the pact, according to the Wall Street Journal, and he explained that his main motivation is to ensure that Japan is part of a pact that could change global trade entirely. Prime Minister Abe hopes to make this Trans-Pacific Partnership part of his long-term growth plan for Japan. Since he returned to office late last year there have been some economic improvements throughout the country, the Wall Street Journal report explains, including a 30 percent increase on the Nikkei Stock Average and a 13 percent weakening of the yen against the American dollar, which is making exporters and consumers alike very happy.
Overcoming the Skeptics in an Election Season
While it is easy to gain the support of his own party, the greater challenge will be convincing those who oppose the pact. In a national address, the Prime Minister explained that if Japan is to grow economically, the country needs to look outside of itself for that growth, the Seattle Times reported. He said more than citizens should fear this deal, they should fear what would have happened if they were to do nothing. He then promised that through the Trans-Pacific Partnership, he will look to benefit their country through negotiations. The report also explained that it is not just the United States that Japan will be negotiating with as there are already 11 countries in the Trans-Pacific Partnership that will have a stake in Japan’s role.
Big Things on the Horizon
This trade pact, if Japan is fully on board, would encompass nearly 40 percent of the world’s trade. There is no telling what this could mean for business in Japan, and it may be best for those with doubts to place some trust in the Prime Minister, who has the best interests of Japan and all its industries at heart.
About the author
Chuck Stevens is an avid blogger always looking to share his experiences and recommendations. He specializes in international business. You can follow him on Twitter @chuckstevens12.
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