Japan’s Diet on 13 June 2018 passed a bill for ratification of a “comprehensive progressive agreement” for the Trans-Pacific Partnership trade agreement.
To complete ratification of the TPP agreement, Japan also needs to enact certain legislation that includes measures to support the domestic agricultural sector and to reinforce the protection of intellectual property rights. The TPP comprehensive progressive agreement legislation will enter into force 60 days after the date on which at least six of the signatory countries of the TPP agreement complete their ratification processes. To date, Mexico has already completed its ratification of the TPP comprehensive progressive agreement, with approval by other TPP signatories under way.
As one of the largest multilateral economic partnership agreements to be ratified, the TPP comprehensive progressive agreement will afford business in Japan the opportunity to re-evaluate their supply chains, as well as their sourcing and manufacturing processes, for increased market access and reduced customs duties. Japanese businesses could also benefit from the participation of Canada and New Zealand in the TPP (with respect to which there is currently no economic partnership agreement).
The agreement also would provide an integrated set of “rules of origin” that will apply to goods traded between the 11 member countries. Goods wholly obtained or produced in the 11 member countries thus could potentially qualify for preferential tariff treatment. This could offer businesses a range of possibilities for determining where to source and manufacture products.
The TPP also allows for self-certification by either an exporter, importer or manufacturer—thus reducing time, cost, administrative burdens, and missed opportunities compared to other agreements that require government authority certification.
For more information, contact a professional with KPMG’s Trade & Customs practice in Japan:
Masaharu Umetsuji | +81 3 6229 8070 | firstname.lastname@example.org
Kozu Takayuki | +81 3 6229 8205 | email@example.com
© 2020 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.