(2) Japan`s free trade agreement strategy – the specific points to be considered by Japan`s major trading partners are East Asia, North America and Europe, three regions accounting for 80% of Japan`s trade. Compared to free trade agreements with the countries of North America and Europe, all of which are industrialized countries, free trade agreements with East Asia will bring the greatest additional benefits through further liberalization. As can be seen from the simple averages of tariff rates (United States, 3.6%; European Union, 4.1%; China, 10%; Malaysia, 14.5%; Republic of Korea, 16.1%; Philippines 25.6%; and Indonesia, 37.5%, East Asia, the region where Japanese products accounted for the highest share of trade, has the highest tariffs. Trade liberalization with East Asia will help facilitate the activities of Japanese companies that face competition from ASEAN and China and, in many cases, have relocated their production sites to sites in East Asia. The United States and Japan have concluded a trade agreement on market access for certain agricultural and industrial products, with plans to continue negotiations for an expanded free trade agreement. On October 17, 2019, the United States and Japan agreed on market access for certain agricultural and industrial products. Japan`s legislature approved the agreement on December 5, 2019. President 9974`s proclamation was issued on December 26, 2019, with the effective date of January 1, 2020. On 30 December 2019, the Communication of the Federal Register (84 FR 72187) on the implementation of the agreement was published. If Japan promotes free trade agreements, we must ensure political and economic stability in the broader context of a regional system. Priority should be given to the conclusion of free trade agreements with countries and regions where, despite close economic relations, there are relatively high trade barriers that hinder the expansion of the Japanese economy. From this point of view, East Asia is the region with the most promising interlocutors and, given the feasibility criteria and the aforementioned political and diplomatic criteria, the Republic of Korea and ASEAN are the most likely negotiating partners.
Discover the current trade relationship between the EU and Japan In the past, European companies have faced trade barriers when exporting to Japan, which sometimes made them more competitive. While our ultimate goal is to strengthen an economic partnership with ASEAN as a whole, we should first make rapid efforts to establish bilateral economic partnerships individually on the basis of the Japan-Singapore Economic Partnership Agreement with key ASEAN member states (including Thailand, the Philippines, Malaysia and Indonesia) , who have shown positive interest in a bilateral free trade agreement with Japan.
