Free Trade Agreements as a Strategy of Growth Revival for Japan
Keywords:Japan largest trading partner worldwide and second with EU after China, Economic agreements by Japan, EU more competitive in in new tech, Aerospace agricultural as well as services sectors, Banking, Capital Flow, EPA and ASEAN
This study highlights the broad industrial areas that are supposed to benefit most from the gains arising from the Japan-Europe Free Trade Area (JEFTA) agreement which has been negotiated since March 2013, and which has recently been agreed in principle between Japan and the European Union. The JEFTA is organized around the core principle of “market access” covering areas such as non-tariff barriers, rules of origin, investment dispute resolution and corporate governance.
After a brief review of Japan’s opening strategy, appraised in an historical perspective, the article will delve into the Japan-EU economic relationship and it will highlight the expected objectives of the Japan-EU free trade area. A number of key manufacturing and services areas, such as motor vehicles, electronics and financial services are highlighted because of their relative industrial weight and of their significance in terms of tariff and/or non-tariff barriers (such as for example the high tariff - 10 per cent - imposed by the EU on Japanese exports of motor vehicle parts).
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