Effects of Trans-Pacific Partnership on the United States, Japan, and South Korea

Effects of Trans-Pacific Partnership on the United States, Japan, and South Korea

The input-output analysis of the United States (U.S.) and Japan by the international trade association revealed an accumulation of a total amount of $ 11.3334 trillion. Specifically, the trade between the two countries resulted in a total consumption cost of $ 5.437 trillion, ripple effect added value of $ 5.8 trillion, and international intermediate revenue margin of $ 39.1 billion. It is evident that the U.S. and Japan mutually benefit from the U.S.-Japan trade. Among the international trades between all the other countries, the trade between the U.S. and Japan is the largest. The following are the industries that were most affected by the participation of South Korea in the TPP: renting of machinery and equipment and other business activities, agriculture, forestry, fishing, and hunting, electrical and optical equipment, chemicals and chemical products, and financial intermediation. If the U.S., Japan, and South Korea join the TPP, the economic effect would be the annual increase of the gross domestic product in the three countries by about 1.7 % ~ 2.1 %.