Strong Q3 Economic Growth and the TPP
November 14, 2010 1 Comment
Japan’s economy grew by 3.9 percent in Q3 2010 on the back of government intervention.
Sadly, however, economic growth is expected to slow due to the combination of a strong yen, an end to the stimulus and weakening exports.
Japanese consumers have been pampered by stimulus, so much so that they refuse to buy anything unless prodded and convinced by sizeable government handouts. Consequently (and as stated many times before), Japan is still too dependent on
China foreign markets for economic growth.
The Japanese government is making an attempt to remedy the situation by expressing an interest in participating in the Trans-Pacific Partnership (an Asia-Pacific free trade initiative). Such would likely stimulate economic growth and increase domestic demand in the country as its economic fortunes improve.
Unfortunately, this effort is being blockaded by Japanese farmers, a group that believes that it would suffer a competitive disadvantage if the Japanese market was opened up to free trade.
It probably would. Thing is, are the interests of a minority going to overrule the benefits a FTA would provide to the majority of the populace? It seems to me that this is likely to be the case.
This is totally wrong. You can’t please everyone. The Kan administration has to look beyond the short term implications such would have on a small percentage of the population and look towards the future this FTA would bring.
And given the rapidly evolving nature of trade in the 21st century, I strongly suggest that Japan do so very, very soon, else risk being left in the dust of both developed and industrializing nations.