TOKYO, Jan. 17 — The Japanese government has expanded estimates of the impact on agricultural products from recently-sealed free trade agreements with the EU and with 10 Pacific Rim countries, from 176 billion yen to 179 billion yen.
The estimates were corrected due to an error in the calculations of dairy products, the agriculture ministry said on Jan. 16, about a month after announcing the estimates.
The agriculture ministry explained it had traced the error, while explaining the estimates at a series of meeting with local government officials.
The Japan-EU trade deal is now likely to impact by between 39.7 billion and 68.6 billion yen, while the Trans-Pacific Partnership (TPP) without the U.S. may affect by between 61.6 billion and 110.3 billion yen.
The estimates have immediately drawn criticism from farmers and lobby groups because the government thinks that agricultural production volume will not be affected by a flood of cheap imports.
The government insisted that countermeasures would be in place to cushion the effects of implementing the agreements.
Last December, the government said Japan’s agricultural production value will likely drop by up to 260 billion yen, once the Japan-EU free trade deal and the TPP without the U.S. take effect.
It concluded that prices of domestic products may fall as the agreements slash tariffs on meat and dairy and other agricultural products that are sensitive for Japanese farmers.