TPP Deal for Decline: The deal is being done between the U.S. and Japan for an exchange of concessions in the Trans-Pacific Partnership (TPP) trade negotiations, an exchange of areas where reform will not be complete. Japan will maintain protection of rice and perhaps other ag commodities in exchange for the U.S. keeping tariffs on cars and pickup trucks. This placates two respective and powerful constituencies: Japanese farmers and the U.S. auto workers union. But it is protection both should publicly regret. Japanese rice production has fallen because the government has used supply controls to boost price, but this has caused a shortage of the higher yielding, lower-priced rice that the market demands. Meanwhile, imported trucks and aut...

TAGS – Softs, Asia, North America