Abstract
We examine the influence of political economy reforms on the Trans-Pacific Partnership (TPP) negotiations using a two-level game analysis. Our main findings are summarized as follows. First, the political reforms implemented to strengthen executive policy making decrease the tariff rates in Japan and raise the possibility of the TPPãs conclusion. However, the influence on the political approval rating of the government depends on the content of such reforms. Second, agricultural policy reforms—from tariff protection to direct payments—decrease the tariff rates in Japan and raise the possibility of the TPP’s conclusion. However, these reforms would decrease the political approval rating of the government. Third, a reduction in protectionist political pressure and an increase in direct payments would decrease the political approval rating of the government, because the ideal point of the agricultural ministry is proximate to that of the government representative (prime minister).
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