February 17, 2015
The Abe government will submit bills to reform agricultural cooperatives during the current session of the Diet. This move has prompted questions and criticisms why the reform is needed and who needs it.
The prime minister’s advisory council in May 2014 proposed that agricultural co-operative associations be transformed into joint stock corporations and that financial service functions of the associations be separated, which would practically lead to a dismantling of the agricultural cooperatives. The working group is siding with Japanese business circles which have long sought to weaken or dismantle the cooperatives.
The American Chamber of Commerce in Japan approximately at the same time also demanded that a “level playing field” be established between Japanese agricultural cooperatives’ financial operations and other financial institutions operating in Japan.
When Japan decided to join negotiations for the Trans-Pacific Partnership free trade pact, the U.S. banking and insurance sectors which regard Japan’s agricultural cooperatives’ financial services with hostility made various requests for a reform.
It is obvious that the Abe administration’s agricultural reform scheme originated from its slogan, “Making Japan the best nation in the world to engage in corporate activities”.
The prime minister’s advisory council in May 2014 proposed that agricultural co-operative associations be transformed into joint stock corporations and that financial service functions of the associations be separated, which would practically lead to a dismantling of the agricultural cooperatives. The working group is siding with Japanese business circles which have long sought to weaken or dismantle the cooperatives.
The American Chamber of Commerce in Japan approximately at the same time also demanded that a “level playing field” be established between Japanese agricultural cooperatives’ financial operations and other financial institutions operating in Japan.
When Japan decided to join negotiations for the Trans-Pacific Partnership free trade pact, the U.S. banking and insurance sectors which regard Japan’s agricultural cooperatives’ financial services with hostility made various requests for a reform.
It is obvious that the Abe administration’s agricultural reform scheme originated from its slogan, “Making Japan the best nation in the world to engage in corporate activities”.
