Japan’s Free Trade Agreement negotiation
with the EU was established in March of 2013 aimed at addressing a number of EU
concerns which included the non-tariff barriers which companies of the EU have met
in Japan along with providing opportunities for the Japanese public procurement
market.
A total of five negotiating meetings have taken place so far, in order to provide progress for this issue.
I will firstly examine Japan’s relations with the EU in order to identify the purpose and benefits that both parties will acquire. Secondly I will observe current talks taking place between the two parties and the progress that has eventuated. Finally I will stress on the fundamental aspects that liberalism has towards to beneficial traits of free trade.
Japan is obviously, the EU’s second biggest trading partner of the EU in Asia, after China. Mutually, the EU and Japan account for more than a third of the world’s GDP. Japan remains a major partner for the EU and also a major investor in the EU so therefore Europe is a crucial market for Japan.
So fundamental are their trade relations that on one hand, EU’s import from Japan includes a vast majority of machinery and transport equipment and chemicals products and on the other, Japan’s imports from Europe include machinery and transport equipment, chemical products and agricultural products.
Since Japan acquires a highly developed economy and is a key global trader and investor it therefore is a crucial partner of the EU.
When observing the EU and Japan’s trade relations, it is evident that it is exemplified by big trade surpluses in already in place. Even though there are challenges from the specific traits of the Japanese society and economy including the business and investment side of the spectrum, trade figures have been reasonable recently.
This is evident when we focus our attention towards a couple of bilateral dialogues, which include a cooperation framework aimed at promoting two-way investment via concrete actions which has been in place since 2004 and the EU-Japan Business Dialogue Round Table, which was established in 1999, that allows for a dialogue and exchange of views between EU and Japanese businesses. There have also been four fundamental agreements established until now between the two parties which include, the EU-Japan Mutual Recognition Agreement, Agreement on Co-Operation on Anti-competitive Activities, Science and Technology Agreement and finally the Agreement on Co-operation and Mutual Administrative Assistance.
A total of five negotiating meetings have taken place so far, in order to provide progress for this issue.
I will firstly examine Japan’s relations with the EU in order to identify the purpose and benefits that both parties will acquire. Secondly I will observe current talks taking place between the two parties and the progress that has eventuated. Finally I will stress on the fundamental aspects that liberalism has towards to beneficial traits of free trade.
Japan is obviously, the EU’s second biggest trading partner of the EU in Asia, after China. Mutually, the EU and Japan account for more than a third of the world’s GDP. Japan remains a major partner for the EU and also a major investor in the EU so therefore Europe is a crucial market for Japan.
So fundamental are their trade relations that on one hand, EU’s import from Japan includes a vast majority of machinery and transport equipment and chemicals products and on the other, Japan’s imports from Europe include machinery and transport equipment, chemical products and agricultural products.
Since Japan acquires a highly developed economy and is a key global trader and investor it therefore is a crucial partner of the EU.
When observing the EU and Japan’s trade relations, it is evident that it is exemplified by big trade surpluses in already in place. Even though there are challenges from the specific traits of the Japanese society and economy including the business and investment side of the spectrum, trade figures have been reasonable recently.
This is evident when we focus our attention towards a couple of bilateral dialogues, which include a cooperation framework aimed at promoting two-way investment via concrete actions which has been in place since 2004 and the EU-Japan Business Dialogue Round Table, which was established in 1999, that allows for a dialogue and exchange of views between EU and Japanese businesses. There have also been four fundamental agreements established until now between the two parties which include, the EU-Japan Mutual Recognition Agreement, Agreement on Co-Operation on Anti-competitive Activities, Science and Technology Agreement and finally the Agreement on Co-operation and Mutual Administrative Assistance.
Just recently further progress has been evident
as the European
Union and Japan are hoping to move swiftly towards a free trade agreement,
after Japanese Prime Minister Shinzo Abe held discussion with EU leaders in
Brussels.
According to Abe, Japan is well aware of the importance of an early conclusion to the agreement which it will elevate their hopes of increasing their automotive and television exports to the EU, which the EU have acknowledged and in return, aim to promote their cheese and wine exports. Therefore non-tariff barriers such as domestic rules on vehicle safety in Japan are to be lifted and the further progress to take place.
Also important is the estimations by the EU that a free trade agreement with Japan would boost the overall economy by 0.8% and lead to an increase in EU exports to Japan of more than 32%.
According to Abe, Japan is well aware of the importance of an early conclusion to the agreement which it will elevate their hopes of increasing their automotive and television exports to the EU, which the EU have acknowledged and in return, aim to promote their cheese and wine exports. Therefore non-tariff barriers such as domestic rules on vehicle safety in Japan are to be lifted and the further progress to take place.
Also important is the estimations by the EU that a free trade agreement with Japan would boost the overall economy by 0.8% and lead to an increase in EU exports to Japan of more than 32%.
It can therefore be acknowledged that the
theory of liberalism in regards to free market trade is crucial in
international relations and foreign policy and trade. As liberals would
believe, unregulated commercial exchanges promote relations across foreign
state borders and shifts loyalty away from the nation state. World leaders
would concede that benefits of free trade would overcome territorial conquest
and colonial expansion. Free trade has an impact that will eventuate in more
peaceful means of achieving national wealth since the theory of comparative advantage,
would eventually be beneficial than if it pursued nationalism and self
sufficiency. Morally, free trade would further develop the levels of
understanding between people of different states and promote international
friendship and understanding. By lifting the non-tariff barriers would not only
unite Japan and the Europe but also avoid conflicts or wars which would place a
dent to national harmony of interests commonly shared by the global community.
Therefore when examining the relationship between Japan and Europe, one can distinguish the high level professionalism and the support for liberalism taking place. Both the EU and Japan will benefit from free trade that eventually open up avenues and access not only to economy and trade but also foreign policy and international relations as a whole.
Therefore when examining the relationship between Japan and Europe, one can distinguish the high level professionalism and the support for liberalism taking place. Both the EU and Japan will benefit from free trade that eventually open up avenues and access not only to economy and trade but also foreign policy and international relations as a whole.
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