JPY: Japanese economy on cloud nine if TPP comes in force – Nomura

By FXStreet FXStreet (Delhi) – Research Team at Nomura, suggest that negotiations over the Trans-Pacific Partnership resulted in a historic agreement on 5 October and successful negotiations for the TPP, which aims to open markets in a range of areas and unify rules for member countries that represent some 40% of the global economy, are likely to be viewed as a key outcome for the strong commitment to growth strategies by the administration of Prime Minister Shinzo Abe. The opening up of domestic and foreign markets and unification of rules will likely have a major bearing on Japan’s economy.

Key Quotes

“The agreement includes items that should encourage exports and overseas activity by Japanese companies and items that will lead to the opening up of markets in Japan, on which basis we think they will lead to stronger growth potential for the Japanese economy over the medium term.”

“In terms of stimulating exports and overseas activities by Japanese companies, items that will likely have a key role to play include the phased abolition of tariffs on exports of industrial products, improved access for exports of agricultural, forestry, and fishery products, liberalization of trade in services and of financial services, the opening up of government procurement …read more

Source:: FX Street