Diffusion of Japanese preferential trade agreements: Why is no evaluation underway?

Abstract

In the last two decades, the worldwide diffusion of bilateral free trade agreements (FTAs) has altered the international trade regime. East Asian governments are eager to conclude FTAs. Japan is an especially interesting case in East Asia because it initially did not consider FTAs as a policy option, but subsequently changed its position drastically, and is now one of the main FTA-hubs in the region. After mainly signing bilateral agreements, Japan entered a second stage of FTA diffusion when it joined the ongoing Trans-Pacific Partnership (TPP) negotiations and started talks with the EU in 2013. Discussions on a trilateral FTA among Japan, China, and Korea are also underway. However, Japan has not undertaken any measures to evaluate its present FTAs in order to secure the best possible political and economic outcome in future negotiations. This article will examine the challenges of trade policy evaluation in Japan.

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