Survey on Corporate Attitudes toward TPP

A Hot Tip about Business Environment in Japan

Last updated: 27 Jan 2011

Teikoku Databank conducted a survey on corporate attitudes towards Japan’s participation in TPP (Trans-Pacific Partnership).

Survey on Corporate Attitudes toward TPP 65.0% of corporations th ink participation in TPP is ?necessary? for Japan ? Over 70% recognize nonparticipation wil l have ?adverse effects? on the economy ? Participation in TPP is ?necessary? ? for Japan said 65% of corporations With weak domestic demand, it has been increasingly important to circulate foreign demand and for the industry the company belongs to said nearly 40% back into the domestic economy. With this in the backdrop, the debate over the Trans-Pacific Partnership (TPP), which aims to strengthen economic alliances for free trade among the countries facing the Pacific Ocean, has become more heated. The Japanese government says it is going to decide whether or not Japan will officially participate in TPP by June 2011. Teikoku Databank conducted a survey on corporate attitudes towards Japan?s participation in TPP. Research Period: December16, 2010 to January 5, 2011 Research Subjects: 23,101 corporations across the nation Valid responses: 10,917 (response rate 47.3%) Primary points of survey results ?Participation in TPP is ?necessary? -- for Japan said 65% of corporations and for the industry the company belongs to, said nearly 40% 65.0% of the respondents, or two in three corporations, recognize participation in TTP is necessary for Japan. 38.3% think it is ?necessary? for the industry the company belongs to. ? 46.1% think it is ?possible? for Japan to participate in TPP even under the present circumstances 46.1%, or almost half of the companies, think Japan can participate in TPP. ?The top requirement for participation is ?to show a vision of the situation after participation,? answered by 35.8% of respondents Proposing comprehensive measures to the agricultural sector was supported by no more than 20%. What matters to corporations is not only participation in the TPP but also the picture of the Japanese economy after participation. ?Over 70% of the corporations recognize nonparticipation will ?have adverse effects? on the economy 72.4% of the corporations say that if Japan does not participate in TPP, there will be ?adverse effects? on the economy in the long run. Only 5.4% think there will be ?no adverse effects.? ?For the most desirable framework, Free Trade Agreements (FTA) were suggested by 23.1%, the Research & Summary for December 2010 largest share of the respondents, while TPP captured 18.5% 23.1% of the corporations answered that FTAs are the most desirable framework for the future development of the Japanese economy. TPP and EPA captured 18.5% and 9.7%, respectively. ©TEIKOKU DATABANK, LTD. 2011 TDB Economic Trends Research December 2010 1 46.1% think it is ?possible? for Japan to participate in TPP even under the Over 70% of corporations recognize nonparticipation will ?have adverse present circumstances effects? on the economy The top requirement for participation is ?to show a vision of the situation after participation,? answered by 35.8% of the respondents For the most desirable framework, Free Trade Agreements (FTA) were suggested by 23.1%, the largest number of the respondents, while TPP captured 18.5% What is Required the Most for Participation in TPP Composition ratio (%) No. of respondents (firms) Rank Most Desirable Framework of Economic Alliance and Trade To show a picture of the Japanese economy after participation in TPP 1 35.8 3,909 (vision) W Economicorld Trade Trans-Pacific Partnership To propose comprehensive measures to the agr Organizationicultural sector 2 18.9 2,061 Free Trade Partnership (TPP) Agreement (EPA) (WTO) Multilateral Agreements Don't (Other than TPP) To show political leadership 3 15.2 1,659 Agreements (FTA) Other know To structurally reform the domestic economy 4 9.1 989 To conduct preliminary research toward participation 5 4.0 439 Participation in the formation of framework in which the rules are 6 3.4 373 decided 23.1% 18.5% 17.1% 30.6% 9.7% To give compensation to the interested parties 7 2.2 241 (2,517 firms) (2,015 firms) (1,866 firms) (3,345 firms) (1,064 firms) Other 8 1.1 118 1.0% (110 D on't know 9 10.3 1,128 firms) Note: Population parameter: 10,917 firms that produced valid responses Note : Population parameter: 10,917 firms that produced valid responses. ©TEIKOKU DATABANK, LTD. 2011 TDB Economic Trends Research December 2010 2
Posted: 26 January 2011, last updated 27 January 2011

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