Regional Trade Agreements and Member Countries Japan: An Overview
Regional trade agreements (RTAs) have become a popular tool in international trade over the past few decades. These agreements are signed between two or more countries to reduce trade barriers and promote trade among member countries. Japan is one of the major players in the global trading system and is a member of several RTAs. In this article, we will take a look at the regional trade agreements that Japan is a member of and how they impact international trade.
Japan`s RTAs
Japan is a member of several RTAs, including the Asia-Pacific Economic Cooperation (APEC), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Japan-European Union Economic Partnership Agreement (JEEPA).
APEC is a regional economic forum that promotes economic cooperation and free trade among its 21 member economies in the Asia-Pacific region. Japan has been a member of APEC since its inception in 1989 and has actively participated in the forum`s initiatives to promote regional cooperation.
The CPTPP is a free trade agreement between 11 countries, including Japan, Canada, Mexico, Australia, and New Zealand, among others. The agreement aims to eliminate tariffs on goods and services, promote investment, and establish a framework for intellectual property protection. The CPTPP is seen as a successor to the Trans-Pacific Partnership (TPP), which included the United States, but was abandoned in 2017.
The JEEPA is a bilateral free trade agreement between Japan and the European Union (EU). The agreement aims to eliminate tariffs on goods and services, promote investment, and establish a framework for intellectual property protection. The JEEPA is one of the largest trade agreements ever signed and is expected to boost trade between Japan and the EU.
Impact of RTAs on International Trade
RTAs have a significant impact on international trade. By reducing trade barriers, such as tariffs and quotas, RTAs can increase trade among member countries. This, in turn, can lead to increased economic growth and job creation.
However, RTAs can also have some negative effects on international trade. RTAs can create trade diversion, where member countries trade more with each other and less with non-member countries. This can lead to a loss of economic welfare for non-member countries.
Conclusion
Regional trade agreements have become a popular tool in international trade. Japan is a member of several RTAs, including APEC, the CPTPP, and the JEEPA. These agreements aim to reduce trade barriers and promote trade among member countries. While RTAs have the potential to increase economic growth and job creation, they can also create trade diversion, which can have negative effects on non-member countries.
