TPP-11 trade deal would cost Japan 74 billion yen in lost tariffs

TOKYO, May 17 — Japan would lose out on 74 billion yen in tariff revenues once the revised Trans-Pacific Partnership (TPP), also known as TPP-11, fully comes into force.

Revenue loss from agriculture imports has the most important impact, when the TPP-11 is fully implemented — a revenue loss of 62 billion yen.

The revenue loss from the TPP-11 tariff cuts would add more pressure on farmers, because the revenues have been used to support programs to enhance farm income and promote stability for farm businesses, such as beef and dairy.

Experts say that the lost revenue must be replaced in some different manner to maintain the programs.

The government examined the impact on tariff revenues and released its estimates on May 16. The implementation of the TPP-11 agreement could cost Japan 74 billion yen in lost tariff revenue.

The government tariff revenues were some 939 billion yen from the 10 TPP countries excluding the U.S. in 2016. Of those, tariff revenues on agricultural imports from the 10 countries were 112 billion yen.

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