Chart of the day: Insular Japan needs to open up ahead of TPP
Despite a large and vibrant export-facing corporate sector, Japan remains "a remarkably insular economy" amid the need for economies in Asia to open up ahead of the newly crafted Trans Pacific Partnership, according to Standard Life Investments. It said a prime target for this would be the elimination of barriers in agricultural trade. Ending tariffs through TPP is expected to push down CPI by almost one percentage point, with much of this effect coming through food prices. This would boost real disposable incomes, helping to support consumption, Standard's Japan analyst Govinda Finn said. Early estimates put potential agricultural product import growth at close to US$3 trillion.