Sunday May 27, 2012

Japan to join TPP talks, media report

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  • 0

    Yubaru

    Smart move, here's to hoping he manages to get his party behind him as well. Probably going to have to spend all his political capital to do it, but it will be worth it in the long run!

  • 0

    zichi

    If it was only a problem as small as a grain of rice but its far more complicated than that.

    For those city slickers who can't even grow a potted plant, and can't be bother to do a little research before proclaiming that farmers are rich and hold us to ransom with their overpriced produce.

    There are very few, most likely none who are rich from growing the sacred grain, even with farm subsidies most are just scrapping a living from the dirt. Farming, construction work and mining are all some of the most physical of jobs. Out in the fields, fighting the insects, the locus, the rats and mice, the poisonous snakes, fighting typhoons, all to produce the rice.

    Farmers receive subsidies but not on the level in America, which spend in excess of ¥20,000 billions per year on direct farm subsidies. More for those farmers who grow fuel crops, like corn. Massive oil subsidies to create a false price at the gas pumps.

    Free trade agreements are about much more than just grains of rice, its also about little microchips, a screw used in the construction of an engine, an electronic box or gadget.

    There are thousands of back street engineering workshops which employ from 10 to 100 workers. Each one producing two or three components, which are shipped off to be used in the main assembly factories.

    Under a free trade agreement these workers jobs will disappear in the long run. To compete with imported prices, manufacturers will have to cut costs, first by the costs of the components it needs, then by a reduction in wages, and when that fails by moving the production base to a country where the cost of living is lower.

    There will be no more need for all the foreigner English teachers, people won't be able to afford the high fees and anyway, now you can learn English, or any other language from the internet at much cheaper rates.

    If free trade agreements are so great, why is unemployment in America more than twice the level in Japan? Why did so many American companies move their production base out of the country?

    Japan is the richest country in Asia, with the highest standard of living and health care. That would be in danger from a free trade agreement designed to benefit American companies. America styl banks and health care which would mean 50% of the people won't be able to afford it. 50 million Americans can't afford health care. The target of all American banks is the massive post office saving accounts.

    If it was only about a grain of rice!

  • 1

    globalwatcher

    Just attending the TPP talks may not be a bad idea to learn cost/benefit analysis. Keept it mind that it is easy to join, but harder to get out once you agreed. To my understanding, once you commited, you cannot get out. There would be many consequences and implications.

    Learn from all mistakes from the Euro. There would be a lot of issues when big guys and small guys are trying to jump into one boat..

    Japan has a little to gain from TPP. I am very concerned to learn many Japanese PRO TPP failed to see the possible direct impact on economic and legal aspect for private (individual) and business (corporate) sectors.

    When Japan joins TPP, mega US banks, mega US insurance companies and mega investment bankers would dominate financial and insurance induestries in Japan. Then, I am afraid they may demand Japanese government (public sector) how to change laws to satisfy their needs to make a profit just like they are trying to do in US.

    Their objectives is to privatize Japanese National Health Care and Nenkin systems you guys worked very hard for them. Remember, they are careless about YOU.. Their ultimate objective is a PROFIT. They would trash your excellent systems like a toilet paper to a sewage drain. Just for your info, my health care MONTHLY premium (before retirement) was $1,068/month. I wounder how many Japanese can afford that? Nobody! I also want to add a half of US senior citizens are financially broke due to high health care cost (a true stats).

    There has been a tag of war on privatization of American SSI (NENKIN) initiated by US financial industry (Bank, Investment banking and Insurance) for decades. So far, they have been quiet since Obama being in Washington. Why do I know all about this? I have been in US financial industry all my life. I hope someone can warn about these possible outcomes properly to naive ignorant Japanese. They are coming to your doors!

    IMHO, TPP will burn down that FIREWALL to protect Japanese citizens. US financial industry is salivating for dripping honey of Japan. You guys need to say "NO" to TPP. Do you trust the Wall Street who got all of us into this mess? Do you remember a Credit Default Swap? Do you know they are still dealing with Derivatives; a deadly cocktail?

    Now, I have a simple question for all pro TPP advocates here on JT. Are you willing to destroy low cost national health care? Are you willing to privatize Nenkin to Mega American Insurance companies? Are you willing to privatize Japan National Postal Savings to American Mega Banks? Is it worth to you, ladies and gentlemen of Japan?

    I am in the US and am supposed to support TPP for Americans because this is a part of Obama Jobs Act to create jobs for Americans, however, I am obligated to provide you the information as much as I can, so that I can sleep with a clear concience every night. I am retired now from US cut throut financial industry, (no more Martine drink before going to the Wall Street, no more Martini drink for lunch, No more Martini drink before going home), so there is no conflict in my concience. I would like to tell you the truth. Now, you will be the judge. You need to decide what is a best interest for you and for your children, grand children.

  • -2

    seesaw1

    As I already thought.....

  • 0

    mr_jgb

    Noda is at least more decisive than his predecessors. Japan needs more FTAs not less. Japan also needs to stop gigantic subsidies to farmers as the nation is almost bankrupt. Farmers need to compete on global basis; everything can be learned if there is a willing, humble spirit. But cannot be learned if fearful, protective and unwilling. Japanese farmers need to change their attitude; cannot afford to retain a sunset mind.

    Nevertheless, Japanese maunfacturers need a more competitive Yen compare to Korean Won & Taiwanese NT. As such BOJ needs to compete and intervene more frequently like Korea & Taiwan central banks. BOJ needs to be more competitive.

  • -3

    NetNinja

    Bow down.

    Anyway it's just talks. Even if Japan does sign anything they will most likely renig on any deal they make.
    This is no big deal really.

  • 0

    zichi

    mr_jgb

    " stop gigantic subsidies" what gigantic subsidies, please supply figure instead of wild statements?

  • 0

    Piglet

    @zichi

    It's not only a matter of subsidies, it is mainly the fact that JA has a monopoly on agricultural production in Japan and there is a strong price control policy. Did you know for example that a local farmer wanting to sell his rice at lower prices (thanks to better business organization / more modern harvesting techniques / consolidated farm, etc...) would not be allowed to do so because JA enforces a minimal selling price for rice? This is totally uncompetitive and does not allow for competition-drive business improvement. It just rewards mediocrity.

  • 0

    Piglet

    competition-driven

  • 1

    zichi

    Piget,

    I agree that there needs to be changes with the way the JA operates, but the most comment I keep reading is the huge subsidies farmers get, which is not correct. It was the JA bank back in the '90's which went bankrupt and had to be bailed out.

  • 0

    marcelito

    Good comments there zichi...I think though that Keidanren will roll the JA and anyone else on this issue.. Japanese manufacturers can not afford to loose anymore overseas market share to South Korea and others who are able to offer competing products at lower prices due to their own FTA,s... Comparing to other countries Japan ,as usual, has dragged its feet for far too long on FTA,s and now with the TPP it doesn,t have much realistic choice left since it is a mannufacturing / export based nation. For all the good and bad..

  • -3

    paulinusa

    So the blood thirsty Americans are going to plunder Japan? Some of the comments here are a bit over the top. zichi and globalwatcher: American and Int'l banks already have a presence in Tokyo. Foreign health insurance? Ever hear of AFLAC? Been in Japan for years. Small companies put out of business because of cheaper parts and labor? China ( who isn't signing on ) and Southeast Asia are doing so now and have been for some time.. And as for agriculture, look for a large amount to be exported by Australia, New Zealand and Chile, which by the way already has a free trade pact with the US and ships quite a lot of fruit to America in the winter months.

  • -2

    ExportExpert

    saying a deal would reduce food security in a country where farmers—especially of rice—enjoy generous government protection, at the cost of high prices for consumers.

    How could food security be reduced here ? its already at an all time low and was never spectacularly great to begin with and also too for the government to stop protectionist policies for these part time gardeners they call famers here, it's a joke, grow a cabbage and a daikon for a hobby on you 6ft square piece of dirt and you're called a farmer? haha get real , a farm is a farm in the real world not a small garden or a cabbage patch.

    Sort it out and it will be another step in the development of japan into the real world trading on an equal foooting with other countrys.

  • -3

    NuckinFutz

    Just announcing the Japan will join is only a starting gesture. Japan has to be accepted by the other nations and invited to join the talks. Given Japan's track record for dragging on discussions, demanding concessions, and general whining about anything that gets in the way of it's "culture" I doubt anybody will be in a hurry to issue the invite.

  • -1

    zichi

    "Given Japan's track record for dragging on discussions, demanding concessions, and general whining about anything that gets in the way of it's "culture" I doubt anybody will be in a hurry to issue the invite."

    Sounds just like America? Next year is the end of the Kyoto Protocol and guess what, America didn't even get around to signing it? um!

  • -1

    globalwatcher

    Some of the comments here are a bit over the top. zichi and globalwatcher: American and Int'l banks already have a presence in Tokyo.

    paulina, these International financial institutions in Japan today are regulated under Japanese jurisdiction of business law . With TPP, there will be no tariff, no jurisdiction of laws and regulations between countries.. That is what is happening with NAFTA. We are having a trouble with safety issue on fruits and vegitables imported from Mexico.

  • 1

    nigelboy

    ExportExpert,

    There was a time in 1972 when U.S. experienced a severe drought which propelled them to halt exports under government orders. Hence, there is a good argument for developed countries especially with a population of 123 million to maintain some levels of self sufficiency.

  • 0

    zichi

    Why is Canada unable to export softwood timber into America, when there's an agreement which allows for that?

  • 1

    globalwatcher

    So the blood thirsty Americans are going to plunder Japan?

    paulina, what had happend in 2008? Do you know how a credit default swap works? Do you realize that many European public pensions are tied with AIG? That's the reason we could not let it fall. As a result, we have a huge debt. I was there. I have seen them all. I am no longer drinking a glass of matini though. FYI

  • -2

    nigelboy

    As I stated in a different article, this nothing more than a FTA/EPA agreement between Japan and United States disguised as TRans-Pacific kumbaya.

    Japan has already FTA or EPA agreements with six out of nine participants in the TPP with a on going negotiation with Australia. So, any moron that implies that Japan is shutting itself out like the Edo period really needs to get a loan and buy a clue.

  • 0

    zichi

    The AIG cost my American parents more than 50% of their pension trust. Have people forgotten already the worldwide damage done by the Wall St banksters? Wasn't that the year Bush&co threw out the free market principles of capitalism?

  • -1

    herefornow

    Now, I have a simple question for all pro TPP advocates here on JT. Are you willing to destroy low cost national health care? Are you willing to privatize Nenkin to Mega American Insurance companies? Are you willing to privatize Japan National Postal Savings to American Mega Banks? Is it worth to you, ladies and gentlemen of Japan?

    globalwatcher -- as paulinusa says, this comment is simply way too over the top. Same with zichi's. What you are both missing is that Japan has to finally make a decison as to its priorities, because the other countries of the world are finally calling Japan's bluff. For decades now Japan has tried to have its cake and eat it to -- rely on international trade/exports to drive its economy, but sheltering its own economy, and dinasaurs like Japan Post and its agricultural sector, behind protective tariffs. And they got away with it. But now, since the world is moving to a global economy, and countries like South Korea, have been faster to adapt to the changing reality, Japan cannot continue to play this game. So, globalwatcher, the other side of the coin is that if Japan does not join TPP, the hallowing out of Japan will inevitably continue, and at a accelerated pace. And then folks won't need to worry about higher insurance costs, because they won't have jobs to pay premiums anyway.

  • -2

    globalwatcher

    Ever hear of AFLAC?

    That's a part of American Insurance. A penut insurance IMHO.

  • 0

    ironchef

    Excellent! best move yet by a prime minister in the last 6 years

  • -3

    paulinusa

    "With TPP, there will be no tariff, no jurisdiction of laws and regulations between countries."

    "We are having a trouble with safety issue on fruits and vegitables imported from Mexico."

    See : "Negotiations" Think Japan will concede to every demand from other TPP members? Last fruit scare was a listeria outbreak of melons from ... Colorado.

  • 1

    globalwatcher

    So, globalwatcher, the other side of the coin is that if Japan does not join TPP, the hallowing out of Japan will inevitably continue, and at a accelerated pace. And then folks won't need to worry about higher insurance costs, because they won't have jobs to pay premiums anyway

    herefornow, that's what Japanese have decide. I am not in the position to tell them what to do. They are the judge, not me.

  • 1

    globalwatcher

    See : "Negotiations" Think Japan will concede to every demand from other TPP members? Last fruit scare was a listeria outbreak of melons from ... Colorado.

    Good example. It killed more than 30 Americans so far. Under TPP, what Japan could have done if the same cantalope from Colorado was exported to Japan? You tell me, paulina.

  • 0

    globalwatcher

    AFLAC

    Oh dear, American Family Insurance (correction).

  • 0

    zichi

    Japan exported US$148.1 billion worth of merchandise to the United States in 2006, up 7.3% from 2005 and up 22% in just 4 years.

    Japanese imports from the U.S. rose 7.3% to $59.6 billion in 2006, up 16% since 2002.

    In terms of the merchandise flow between the two countries, America’s trade deficit with Japan was $88.4 billion in 2006, up 26.4% from 2002. The U.S. trade deficit with Japan increased 7.2% in 2006 from 2005 – down from the 9.2% deficit increase in 2005 from the year earlier.

    When those figures are worked out per capita the difference of import/export becomes less. In 2008, Japan imported about $900 billion of America debt.

    http://daniel-workman.suite101.com/japans-top-exports-imports-a25186

  • -2

    YankeeX

    At herefornow

    You comment is spot on.

  • 0

    paulinusa

    In 1996 Japan had the world's largest outbreak of E. coli ( 10,000 people ), so no country is immune. And what about the foods now being imported from China? Any safer?

  • 0

    johninnaha

    Before considering joining talks like these, Japan needs to get some politicians who can discuss, not the deaf yes-men they have at present. Politicians who can analyze, negotiate and get their point across. Not just bend around in the wind like this crew.

  • 3

    globalwatcher

    So, globalwatcher, the other side of the coin is that if Japan does not join TPP, the hallowing out of Japan will inevitably continue, and at a accelerated pace. And then folks won't need to worry about higher insurance costs, because they won't have jobs to pay premiums anyway

    herefornow, that's what Japanese have decide. I am not in the position to tell them what to do. They are the judge, not me.

    And Americans have to bail out all US financial institutions if they fail again just like we did in 2008 for AIG, BoA, CITI, Chase, Morgan Stanley.......and many others. Last year and half of this year, FDIC closed many regional banks in history and still continues. All of the loss have been rolled over to American tax payers. Hope we are willing to meet this financial obligations to other countries like we did for European public pensions. You are the judge, herefornow.

  • -2

    paulinusa

    From Aflac :

    "Aflac Japan is the number one insurance company in Japan in terms of individual policies in force and the largest foreign insurer in Japan in terms of premium income. Aflac Japan also ranks first in the number of individual policies in force among all of Japan's life insurers and is the fifth most profitable foreign company in any industry in Japan."

  • 2

    nigelboy

    Some guy just made a comment about having a cake and eat it to.

    During the post war period, Japan made no secret that they wanted to maintain adequate amount of self sufficiency especially rice. Now let's look at the counterpart. Threat to enact protectionist measures to developing nations which resulted in Plaza Accord. Omnibus Foreign Trade and Competetiveness Act. Structural Impediments initiative which is basically ordering Japan to not spend government money to promote exports. Despite these measures, the trade surplus of Japan grew simply because they made no excuses. They exported industrial materials, machinery, electrical parts and components which are value added products which U.S could not compete. (not talking cost wise, I might add). They adapted as a result of Plaza Accord where manufacturers set their operations in U.S. Now, almost 70% of the Japanese vehicles sold in U.S are made in U.S.

    And now they want free trade??? How convenient.

  • 2

    globalwatcher

    In 1996 Japan had the world's largest outbreak of E. coli ( 10,000 people ), so no country is immune. And what about the foods now being imported from China? Any safer?

    Under American Business Law, all products coming from overseas have NO LIABILITY. I am sure the same rule applies to Japan.

  • 1

    zichi

    Australia is another partner of the TPP, Japan imports more from Australia than it exports.

  • 1

    zichi

    America has made many trade agreements so why is unemployment more than twice that of Japa. Why are more than 20 million Americans living in poverty? Why can't 50 million Americans afford proper health care? Why aren't Canadian priced drugs available in the U.S.?

  • 0

    nec123a

    an excellent idea. Zichi you are over-reaching with your arguments. Much of what you talk about is a result of the subsidised, lack of economies-of-scale madness that infects the Japanese agricultural sector.

    Why must the Japanese consumer be twice penalised by the inefficient farmers of Japan? Let the farmers face the actual, fair price of their produce, let the inefficient fail so that their minuscule plots of land can be corporatised and made efficient. The results will be more food produced at lower prices. And access at last to better choices for the consumer.... fatty, overpriced beef from Kobe, or delicious grass-fed, lean beef from NZ ....no brainer.

  • 0

    zichi

    nec123a,

    the farm fields "can't be corporatised" except somewhere like the flat plain of Niigata where it has happened with the rice growing.

    "Let the farmers face the actual fair price" You can say the same about American farmers. Why are Americans paying well above the world price for sugar?

    I don't think you have spent time on a Japanese farm? They just can all be joined together into large fields.

    The other night I went out with an art client and enjoyed a very nice Kobe Beef, once prepared and cooked properly its much less fat than it looks.

  • -1

    smithinjapan

    globalwatcher: "Now, I have a simple question for all pro TPP advocates here on JT. Are you willing to destroy low cost national health care? Are you willing to privatize Nenkin to Mega American Insurance companies? Are you willing to privatize Japan National Postal Savings to American Mega Banks? Is it worth to you, ladies and gentlemen of Japan?"

    Fear-mongering at its best! The low cost national health care? it's not that low, and while the services CAN be excellent, they can also be extremely poor. Bringing in other nations would force Japan to develop a hands down better system, and they might finally allow in international insurance as valid insurance for those of us with it to supplement the national health care. It would be nice to see them get a computerized system, too! Don't you think it's ridiculous in this day and age to carry around a 3x5 yearly stamp card which, if you don't have it the day of your hospital visit, you have to pay? (you may be reimbursed, but hey). Privatize Nenkin? What Nenkin? Last I heard the government has lost most of it and there may not be any in the future. The national nenkin system is useless, and the return after retirement is almost nothing. You NEED separate company insurance if you want to survive after retirement, not to mention second jobs. If privatizing postal savings means that I get more than 0.01% interest on the money I have in my account while the government here flip-flops about whether the government should have power over the postal system or not, then I wouldn't mind it as an option.

    The bottom line is that Japan is agreeing to enter TALKS; they're not agreeing to enter the TPP flat out. It's a smart play because it gives in to the people that support the TPP while not shutting out those against it since Japan can back out if things don't meet their requirements.

    Personally I think they SHOULD join the TPP -- despite the fear-mongering that it would devastate this and that, I say that's bull. It would make many facets of Japan more competitive and cutting edge, and separate the wheat from the chaff protectionist barriers have saved until now. If those that are threatened cannot find ways to become competitive, they should not survive and superior options should be allowed, whether they are from another nation or domestic.

  • -2

    globalwatcher

    America has made many trade agreements so why is unemployment more than twice that of Japa. Why are more than 20 million Americans living in poverty? Why can't 50 million Americans afford proper health care?

    Good question, zichi. You can go to Northwestern University's website to find the distribution of wealth in Japan to get some answers. Very good writing for you to read.

    More than 50% of US senior citizens are financially broke due to high health care and long term care costs. The official poverty level of single seniors in US is people who earn less than $9700/year. FYI

  • 0

    nigelboy

    AFLAC offers supplemental insurance due to Japanese laws. What you basically stated by giving this example is that foreign companies can succeed under Japanese regulations if they are savy, efficient, and intelligent.

  • -1

    nigelboy

    Smith,

    Any company whether it be foreign or domestic can offer supplemental insurance coverage. This is a no brainer for anyone who resided here for a year. Secondly, any individual that is hoping to get by with only a Kokumin nenkin only seriously needs to have their head examined. Thirdly, the low savings rates are as a result of deflationary spiral which in turn means that bringing in cheap stuff from overseas would worsen it.

  • 1

    zichi

    globalwatcher,

    my American parents worked hard all their lives. Saved for their pensions, 50% was wiped out by 2008. They have a little condo in Florida but they used to have a log cabin, a camper, an extra car. But all those were sold to meet their medical expenses. Now in their 80's I think they are better off than most their age, at least they own the condo.

  • -1

    shanabelle

    As a long term resident of rural Japan, I agree with Zichi too! Look at the EU mess..... stay out of the TTP please!

  • 0

    zichi

    I spent 8 years working on Japanese farms and living in a tiny rural village (actually, they call it a town) and the life is very different than in comments from people who have no experience. There are lots of issues with the JA and in fact should be scrapped and replaced with local co-ops. But the retail side of JA, the food stores should be kept because in many rural areas, the only food store is the JA.

  • 1

    zurcronium

    What does lowering the 778% tariff on rice in Japan have to do with the price of a condo in Florida? Its amazing how misinformed people can become chasing their own tails. The fact is that TPP will up the Japan GDP by 1% or so, thats a $550 billion increase. That will go to productive firms that can compete on the global stage. The backward, corrupt agricultural industry needs to be reformed and it is clear that the LDP could not do it nor will they let the DPJ do it now. just the opposite the LDP pretended it was still 1960 for decades and kept the money flowing to the farmers. They have not changed farmer practices in over 50 years.

    Why should 99% of Japan pay to support corrupt 1% that will die out anyway in a decade or so? Its crazy to propose that. Absolutely crazy. Checking calendar, its 2011. Time to connect to reality folks. Japan has prospered greatly due to globalization after WW2, Japan cannot have it both ways any longer. Its not in Japans interests to do that any longer.

  • 0

    globalwatcher

    smith, I appreciate your comment as always.

    Fear-mongering at its best! The low cost national health care? it's not that low, and while the services CAN be excellent, they can also be extremely poor.

    No, it was not my intention at all. When I was in Japan this time after 3/11 for 90 days, I was placed under the Japanese National Health Care. The monthly cost was only 2,700-2,900/month (apprx. $40/month?) including dental hygene. smith, do you know what I have been paying here in the States as I was getting older? $1,068/month just for medical coverage with no dental hygene. For Dental insurance, I was paying $38/month. Vision Insurance with many holes, I was paying $178/year!!

    I agree with you. The hospital care in Japan is 20 years behind of US standard. I had to go to emergency room while I was staying in Japan, and I was surprised that equipments are old, not updated, filthy hospital, poorly trained nurses.
    I do not know how long you have been away from US, but I tell you, all hospitals in my city are all updated, computerized monitoring systems for all patients, paperless,and very clean. All med. doctors have to fultill certain classes to attend and certain hrs to maintain ongoing med. licenses under state regulations. They are carefully monitored. All hospitals are carefully monitored under the state regulations. All nurses are monitored by the same regulations. Competitions in medical field is very high. If they are not good, they are discarded. That system is much needed in Japan IMHO.

    What Nenkin? Last I heard the government has lost most of it and there may not be any in the future

    Isn't it one of the reason of sales tax hike to 10%? Here in US, SSI may dissapear by 2016. And as you know the Super Committee cannot find the solution what to do. They will cut Medicare and SSI.

    international insurance as valid insurance for those of us with it to supplement the national health care.

    Supplement insurance to National Health Care is not my concern as long as they are willing to help you when you need it. But my concern is that their long term objective in Japan is to move into National Health Care system eventually

    .If privatizing postal savings means that I get more than 0.01% interest on the money

    The same here too. But many US regional banks are failing more so than Japan.

    Personally I think they SHOULD join the TPP -- despite the fear-mongering that it would devastate this and that, I say that's bull. It would make many facets of Japan more competitive and cutting edge,

    I am against the TPP, personally. As I read that Japanese monetary gain is only $55 billions in exchange of sovereignty. But I DO agree with you, smith. The Japanese health care needs to be improved to our standard. It is very shame for 3rd Economic power of the world is still in 20 century medical standard.

    Hope I have responded to your comment with mutual respect, smith.

  • 0

    globalwatcher

    globalwatcher,

    my American parents worked hard all their lives. Saved for their pensions, 50% was wiped out by 2008. They have a little condo in Florida but they used to have a log cabin, a camper, an extra car. But all those were sold to meet their medical expenses. Now in their 80's I think they are better off than most their age, at least they own the condo.

    Zichi, I feel for them and all other US senior citizens who lost most of their savings in 2008 financial meltdown. I have a friend who lost everything to Enron. He used to be an executive for a major corporation, now he is working as a greeter in grocery store with a minimum hourly wage. That's what those reckless Wall Street executives did for Americans.

  • -2

    globalwatcher

    GDP by 1% or so, thats a $550 billion increase

    Too cheap to give up your own sovereign power.

  • 0

    marcelito

    @globalwatcher - 2700 -2900yen p/ month for health insurance is not what people are paying here... It would be medical heaven here if that were the case....

    As far as I know ( and there are many people on this forum with better knowledge than me, so feel free to correct me ) the health insurance premium is based on your income in the previous financial year... In your case if you fly in on a short term 90 day visit , ( for work or otherwise ) I,m guessing your income earned in Japan on which the premium is based is minimal. Thats why you paid 2700/ yen per month... Most long termers here will remember that during their first year in Japan the medical premium was next to nothing and it rises substantially in the subsequent years... Most people would be paying 10 to 20 times higher than your quoted figure ...

    Anyway, back to TPP...from a consumer,s point of view there is much more to gain than to loose here... Hope Japan joins the 21st century and we can all benefit from the lower prices that competition usually brings..

  • 0

    globalwatcher

    marcelito, thank you for the info. I am learning how Japanese National Health Care premium is calculated. So how much average Japanese single individual pays? Maybe 27000 to 30000 yen/month? That's about $400/month without underwriting compared to $1,068/month with underwriting here in US? Many US insureds with serious illness have to pay a lot more as Insurance companies use a trick to raise their premium to the roof, so insureds are forced to drop coverage. For underwriting, insurance companies use FICO credit scores also.

    That's my concern when US mega insurances move into Japan National Health Care system.

  • -1

    nigelboy

    Smith.

    The operative word here is "supplemental". Please follow the discussion. I'm serious. You are more than free to not pay kenko hoken, pay your fees out of pocket, and see if your overseas insurance provider will reimburse you the fees ok? I'm sorry. You don't understand the concept since you're from Canada where you wait six month to get a simple MRI.

    Secondly, kokumin nenkin premiums are SAME for everybody. Hence, the payout to those who enrolled at the same time and fulfilled it's terms at the same time will receive the same payments. The distribution amount can be estimated if you gonto the MHLW website. Now, if you feel that you could live off of that amount, by all means don't save. If you think it's not enough, start accumulating and invest privately. (most population does this). Do some research on Kokumin nenkin as opposed to relying somebody else like me to give you lessons every time. The establishinent of Kokumin nenkin was not intended as a sole source of once you retired. The law was enacted for the purpose of making it a society as a whole to take responsibility and well being for the past generation first.

    And as for the interest rates, I have no clue what you're trying to say. But I hope I can clear this up by offering a scenario. Citibank, who has offices and branches throughout Tokyo, can very well offer 5% on their yen denominated time certificates. I believe the population of Tokyo will line up in thousands to open up the accounts there. Quick question. How is citibank going to make money where they could derive more than 5% on their accumulated yen??

  • 0

    2020hindsights

    zichi

    Farmers receive subsidies but not on the level in America

    Not True. The US and Europe subsidized around 20% of total farm receipts in 2010, whereas in Japan it was 50%.

    The problem with these farm subsidies is threefold:

    1. They cost the consumer more for rice.
    2. They threaten to not join the TPP and hence cost other businesses in Japan the benefits at a time they need it the most.
    3. They lower food self-sufficiency (the benefits of which have been overstated). Removing tariffs on rice will drive efficiency in farming and in turn drive up food self-sufficiency.

  • -2

    nigelboy

    Marcelito,

    As I alluded to the previous post, Japan has already established FTA or EPA with 6 of the 9 participants in the TPP with the 7th (Australia) under negotiations. So let's dispense with this "joining the 21st century" shall we?

  • -3

    globalwatcher

    Anyway, back to TPP...from a consumer,s point of view there is much more to gain than to loose here... Hope Japan joins the 21st century and we can all benefit from the lower prices that competition usually brings..

    Are you willing to give up sovereign power to 1% more GDP, marcelito? Is it good for your children and grand children?

  • 2

    marcelito

    @nigelboy I am free to express whatever opinion I wish on this forum just as you are, so lets dispense with the superiority complex shall we? Yes, Japan has FTA,s with Chile, Mexico,Thailand, Switzerland and most substantially the ASEAN group of nations. Negotiations with countries like Australia , Canada are bogged down precisely because of the agriculture question... However Japans FTAs are dwarfed by South Koreas recent agreements with EU and the US which gives the SK companies a distinctive price advantage over their J counterparts in these huge markets. If Japan doesn`t mind seeing its market share continue on the downwards spiral it is free to not sign the TPP of course. There will naturally be winners and loosers in either case. One has to ask though which decision will benefit the majority here as opposed to the vocal interest groups.

  • 2

    zichi

    2020hindsights,

    Farm subsidies is always a very complex and usually not so equal and fair for all those involved.

    The EU's agricultural support amounted to about $133 billion, Japan's to $49 billion, America's to $47 billion, South Korea's to $20 billion and Canada's and Switzerland's to $6 billion each.

    Agricultural subsidies contribute to keeping the already tiny number of farmers in the rich countries employed, but, as French economist Patrick Messerlin estimated, the average cost incurred by the European taxpayer for every job "saved" through protectionism was approximately $200,000 per year during the 1990s. Shockingly, over the same period, each sugar industry job "saved" through protectionism cost the U.S. taxpayer $800,000.

    The wealthiest 20 percent of farmers in Europe receive 80 percent of the subsidies.

    In the United States, it is the wealthiest farmers who receive the most in agricultural grants. In 1999, for example, 45 percent of agricultural subsidies went to the largest 7 percent of farms in the United States.

    In Japan, there are only about 4.8 million hectares of cultivated land with farms averaging 1.5 hectares. Japan is the world's largest net importer of agri-food products.

    In 2005, Japan counted roughly 2.2 million commercial farms. Over 8 Simultaneous-Buy-Sell million people live on these farms. Despite having some of the highest levels of agricultural support in the world, 5.6 million farmers rely more on non farm economic activities than farming. Only about 30% of Japanese farmers are full-time farmers.

    The main threat to Japan's traditional agricultural sector now is a shortage of successors in younger generations. About 2.0 million of the 8 million farmers are considered "core farmers" because they are actively involved in the management of the farm. Almost 1.4 million core farmers are over the age of 65 and almost 300,000 are between 60 and 64. Within the next 10 to 15 years, most of these individuals will leave farming due to their age or health reasons. There are roughly 700,000 "core" farmers under the age of 60, with around 400,000 that derive the majority of their income from farming activities.

    Given the age distribution, it is likely that major adjustments are imminent that will involve rationalization and consolidation into larger farm sizes. The average farm size is likely to gradually grow from 1.5 hectares currently to as much as 8 or 13 Simultaneous-Buy-Sell hectares as this process of inter generational transfer takes place. The speed of adjustment will depend on the decisions of elderly, part-time farmers and hobby farmers to exit the industry.

    All farming subsidies should end, or at least in Japan, only farmers working full time should receive them.

    I have never been a supporter of farm subsidies because developing nations can't compete in the international market.

  • 1

    mr_jgb

    Based on OECD figures, Japan has the highest farm subsidies relative to its population. Farm subsidies total $49bln, while that of US is $47bln which has a population of 300mln. Japan has the highest % level of farm subsidies amounting to 60% of adjusted value of produce.

  • -1

    2020hindsights

    Agricultural subsidies contribute to keeping the already tiny number of farmers in the rich countries employed, but, as French economist Patrick Messerlin estimated, the average cost incurred by the European taxpayer for every job "saved" through protectionism was approximately $200,000 per year during the 1990s. Shockingly, over the same period, each sugar industry job "saved" through protectionism cost the U.S. taxpayer $800,000.

    Yes, I agree that level of subsidies in the EU and US is too high.

    Given the age distribution, it is likely that major adjustments are imminent that will involve rationalization and consolidation into larger farm sizes. The average farm size is likely to gradually grow from 1.5 hectares currently to as much as 8 or 13 Simultaneous-Buy-Sell hectares as this process of inter generational transfer takes place. The speed of adjustment will depend on the decisions of elderly, part-time farmers and hobby farmers to exit the industry.

    This should be a government priority, for everyone's benefit.

    I have never been a supporter of farm subsidies because developing nations can't compete in the international market.

    Neither have I. The US subsidizing cotton farmers to the detriment of developing countries is a good example. However, it's interesting to note that countries like New Zealand and Australia, which have almost no farm subsidies can send their produce to Europe (already a major cost because of the distance) and still compete with the subsidized Europeans.

  • 1

    zichi

    If Japan decided to join the TPP, and was accepted it would have 10 years to remove import tariffs. I guess it would start with the easy ones first. Whatever happens, I think farming in his country will change during the next 10 years just because it will have to change regardless of the TPP.

  • -3

    edojin

    Globalwatcher said above: "When Japan joins TPP, mega US banks, mega US insurance companies and mega investment bankers would dominate financial and insurance industries in Japan. Then, I am afraid they may demand Japanese government (public sector) how to change laws to satisfy their needs to make a profit just like they are trying to do in US."

    This scares me, too. Japan has a nice insurance system right now ... and those U.S. companies would only try to worm their way in and destroy it.

    Moreover, the TPP thing sounds a lot like Obama's bizarre health plan ... there's a lot in there that's questionable, very questionable.

    Japan should say "no" ... not at this time. Gotta study the facts more, and much more thoroughly ...

  • 3

    Terry Tibbs

    If Japan decided to join the TPP, and was accepted it would have 10 years to remove import tariffs. I guess it would start with the easy ones first. Whatever happens, I think farming in his country will change during the next 10 years just because it will have to change regardless of the TPP.

    Spot on. The industry along with others will be forced to change and would have no choice but to improve and become competitive which is good news for the average consumer. Sit back and think about the word change. Times change along with industry and products. Take apple for example, I was one of the first around with the new iPhone 4 last year and my Japanese colleagues and family were reluctant to buy one. They didn't want a part of it simply because it was foreign. Now every man and his dog has one and it has left the rival companies scrambling to produce something that will appeal over the iPhone. Same apllies to the farming sector, instead of remaining stagnant and producing below average product, it will be forced to compete in price and quality. Its time for people to have a drink a glass of cement, harden up their resolve around the TTP and produce agriculture that is worthy and competitive.

  • 2

    Tyler Vandenberg

    But in any case, the fact is that the number of Japanese farmers has decreased by 25 per cent over the past decade. Reform that produces a competitive agricultural sector is therefore imperative regardless whether or not Japan joins the TPP. Japanese firms cannot survive global competition by targeting a domestic market with an aged population. It is thus imperative to produce a seamless business environment in which both Japanese and other Asian firms can do free and stable business internationally. Everything Globalwatcher has said has just been xenophobia in nature.

    What about Japan's 20+ year deflationary period and recession? What about Japan's 16% Poverty rate?

    You can't pretend that there isn't a problem and everything will just carry on if you don't join the TPP.

  • -7

    Kentaro75

    Saying "YES" to TPP means to flood Japan with cheap and bad quality and dangerous produce. I don't want my children eating cheap GM rice from USA! And taste is probably too awful! NO To TPP! YES to protecting Japan farmers and jobs for japanese ! Let's keep the lowest unemployment rate and best and safest products in world!

  • -2

    nigelboy

    However Japans FTAs are dwarfed by South Koreas recent agreements with EU and the US which gives the SK companies a distinctive price advantage over their J counterparts in these huge markets.

    Marcelito,

    After only four months of implementing the FTA between Korea/EU, Korea exports fell 5.5% while her imports grew 22%. And this is occuring despite the fact that Korean currency was hovering near the low levels after the Lehman shock. Also, let's not undermine what is going to transpire in the EU in the near future.

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