### 3. Revision of General Principles of Comprehensive TPP-related Policies

The conclusion of Japan-EU EPA negotiations has put Japan’s agriculture, forestry and fisheries into a new international environment.

The government revised the General Principles of Comprehensive TPP-related Policies in November 2017 to prepare for the effectuation of the Trans-Pacific Partnership free trade agreement and the Japan-EU EPA. The government made revisions to TPP measures in the General Principles based on the verification of trade results, included into the General Principles new measures required under the Japan-EU EPA, including the enhancement of competitiveness for domestic cheese and structural laminated wood and systematically organized policies for the TPP agreement.

The government will responsively secure financial resources for agriculture, forestry and fisheries measures through annual budget formulation without affecting the existing agriculture, forestry and fisheries budget.

For competitiveness enhancement measures based on the revised General Principles, the government earmarked 317 billion yen in a supplementary budget for FY2017. Earlier, 312.2 billion yen was set aside for such measures in a supplementary budget for FY2015 and 345.3 billion yen in such budget for FY2016.

The Ministry of Agriculture, Forestry and Fisheries published estimated effects of the TPP agreement on agriculture, forestry and fisheries production in December 2017.

MAFF estimated agriculture, forestry and fisheries production to decline by about 60 billion to 110 billion yen, expecting that while the production value would fall due to price drops accompanying tariff cuts, domestic measures would be taken to secure production and farm household income, with production volume being maintained.

MAFF also reflected the estimates in the food self-sufficiency ratio and found that the ratio remained unchanged despite the reflection.

## Outline of General Principles of Comprehensive TPP-related Policies (Related to agriculture, forestry and fisheries)

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1 Building strong agriculture, forestry and fisheries (competitiveness enhancement measures)

Since the General Principles were set out, various competitiveness enhancement measures have been implemented. Such measures will continuously be implemented as necessary.

○ Nurturing business farmers who have excellent business sense and who will be responsible for the next generation

○ Promoting the innovation of internationally competitive production sites

○ Promoting comprehensive projects to enhance the profitability of livestock and dairy farming

– Enhancing the competitiveness of domestic cheese, etc.

☐ Exploring demand frontiers including the export of high-quality agricultural, forestry and fisheries products

○ Enhancing the international competitiveness of wood products including plywood, lumber and structural laminated wood

○ Switching to sustainable, highly profitable business arrangements

○ Enhancing cooperation with consumers, reforming regulations and the tax system

## 2 Preparations for stable business and supply (related to five major products)

To secure business stability after the effectuation of the TPP or Japan-EU EPA agreement, the government will expand business stabilization measures upon the effectuation.

☐ Rice (revising the management of public rice reserves)

☐ Wheat/barley (implementing business income stabilization measures steadily)

☐ Beef/pork, dairy products (enhancing livestock and dairy farming stability)

☐ Sweetening resource crops (subjecting sweetened preparations to adjustment money)

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○ Enhancing training arrangements for monitoring imported food, diffusing and publicizing the country-of-origin labeling system for raw materials of processed food products

Source: Prepared by MAFF based on documents from the Cabinet Secretariat's Government Headquarters for TPP Measures

## Effects on agriculture, forestry and fisheries production value (estimated)

While the production value would fall due to price drops accompanying tariff cuts, domestic measures would be taken to secure production and farm household income, with production volume being maintained.

Agriculture, forestry and fisheries production value drop About 60-110 billion yen

Effects on food self-sufficiency ratio (FY2016)

Calorie basis 38% → Reflecting estimates: 38%

Production value basis 68%

→ Reflecting estimates: 68%