Japan’s EPA/FTA Policy
August, 2007
0
1. Overall Picture
1
1-1. Basic Principles of Promoting EPAs
Mutual Prosperity with Asia
Aiming to take in the growth and
dynamism of Asia etc.
Development of production network of
Asian companies
Quality, as well as speed, is
important for EPAs
Stable Supply of Natural
Resources & Energy
Strengthening relationship with
countries rich In natural resources &
energy
Maintaining stable supply through
stronger protection of rights &
interests on investment
Respecting the long term contracts,
in times of policy change
New Phase of EPA,
with large markets
New type of FTAs, FTAs with large
market, are developing in the world
In order to avoid the disadvantage,
strengthening relationship with larger
markets, including the U.S. and EU, is
necessary for Japan
Forming the model framework, in order
to cope with the global corporate
movements
2
1-2. Current Status of Japan’s EPA/FTA Negotiations
○EPA/FTA is the important key for Japan to activate her
ＥＰＡ等による
Through
EPA/FTA etc.
・関税コストの低減
-reduce customs cost
-optimize producing locations
○Mainly with East Asia, Japan has currently concluded EPA/FTA ・生産拠点の最適化
-expand market and investment etc.
・市場や投資先の拡大 等
with 7 countries, agreed in principle with
economy, and strengthen her international competitiveness
1 countries, under negotiations/preparing for negotiations with
5 countries and 2 regions, and under consideration for EPAs
etc. with 1 country and 2 region
India
Japan-China-Korea: negotiating for trilateral
investment treaty
（population; 1,029 million, GDP per capita: $700)
-Negotiating from Jan. ‘07
-Market with huge potential, one of the BRICs nations
Singapore
（population: 4 million, GDP per capita: $26,000)
-Took effect in Nov. ’02
-Review treaty signed in Mar. ‘07
Malaysia
（population: 260 million, GDP per capita: $5,000)
South Korea（population: 48 million, GDP per capita: $14,000)
-Negotiation stopped in Nov. ’04
Mexico（population: 105 million,
GDP per capita: $6,500)
Chile（population: 16 million, GDP
Viet Nam（population: 82 million, GDP per capita: $600)
Brunei（population: 350,000, GDP per capita: $17,000)
-Signed in Sep. ’06. Including the agreement on the
movement of natural persons
-Signed on 18 June, ‘07. Important as the supplier of oil and
natural gas.
Thailand （population: 62 million, GDP per capita: $2,700)
Indonesia（population: 217 million, GDP per capita: $1,200)
-Started negotiations in Sep. ’06
-Exporting market with size of more than one trillion yen.
Important in terms of security of natural resources.
Investment Treaty
-negotiating from Mar. ‘07
(c.f.) experts’ study on trilateral
FTA is also under progress
-Negotiating from Apr. ’05. In May ’07, agreed in principle
on modality for trade in goods.
-Aiming to build seamless business area, consistent with
developing industrial network between ASEAN and Japan.
Philippines （population: 83 million, GDP per capita: $1,200)
GCC: Saudi Arabia, Kuwait,
United Arab Emirates, Bahrain,
Qatar, Oman
Japan-China-Korea
-took effect in Apr. ‘05
-Negotiating from Jan. ’07.
-Investment from Japan is rapidly increasing.
ＧＣＣ（population: 35 million)
strengthen
strengthen
International
International
competitiveness
competitiveness
ASEAN （population: 550 million, GDP per capita: $1,200)
-Took effect in Jul. ’06 (eliminated tariffs on essentially all
industrial products)
-Signed in Apr. ‘07.
activate
activate economy
economy
-agreed in principle in Nov. ’06
Australia（population: 21 million, GDP per capita: $30,682)
-Negotiation started in Apr. ‘07
-Important in terms of securing natural resources supply,
economic integration in East Asia, etc.
per capita: $5,839)
-signed in Mar. ‘07.
-important in terms of
securing natural resource
supply
Switzerland（population: 7
million, GDP per capita: $33,678）
-Negotiating from May, ‘07
East Asia as a whole
-agreed to start Track-Two
study, at the East Asia Summit
in Jan. ’07
South Africa
-considering for ways to
strengthen economic
relationship
As of June 21st, ‘07
3
1-3. Current schedule of Japan’s EPA/FTA negotiations
2004
（As of 23 July, 2007）
2005
2006
2007
Amending protocol
signed in Mar.
Negotiations began in Jan.2001
Went into effect in Nov.2002
Singapore
（Negotiations began in Nov.2002 ）
Mexico
negotiations
negotiations
Jan.
Went into effect in Apr. 2005
Agreed in principle in May
Signed in Dec. Went into effect in Jul.
negotiations
negotiations
Feb.
Agreed in principle in Nov 2004.
Signed in Sep.
negotiations
negotiations
Jun.
Agreed in principle in Sep. Signed in Mar.
Agreed to begin Negotiations in Nov.
Joint
Feb.
negotiations
JointStudy
StudyGroup
Group
negotiations
Feb.
Agreed in principle in Sep.
Signed in Apr.
negotiations
negotiations
Jun. Agreed in principle in Dec. Signed
Feb.
Preparatory
negotiations
Preparatorymeetings
meetings
negotiations
in June
Agreed in principle in Nov.
Jul.
Jan.
Joint
JointStudy
StudyGroup
Group
negotiations
negotiations
（agreed to begin
May
Apr.
Feb.
negotiations in Nov.）
Agreed in principle
negotiations
AJCCEP
negotiations
AJCCEP
on modality for trade in goods
Agreed to begin Dec.
negotiations stopped in Nov.
negotiations in Oct.
negotiations
negotiations
2003
Sep.
May
preparatory
negotiations
preparatorymeetings
meetings
negotiations
agreed to
begin
negotiations
in Dec. 2003
Malaysia
Philippines
Chile
Thailand
Brunei
Indonesia
ASEAN
Korea
GCC
Vietnam
Feb.
India
Jul.
Joint
JointStudy
StudyGroup
Group
Nov.
Australia
Switzerland
Oct.
Japan-China-Korea investment
treaty
agreed to begin
consultations in Nov.
May
study
studygroups
groups
Joint
JointStudy
Study
Joint
JointStudy
Study
Consultations
Consultations
Jan.
negotiations
negotiations
Jan.
negotiations
negotiations
Apr.
negotiations
negotiations
May
negotiations
negotiations
Mar.
negotiations
negotiations
South Africa
East Asia
[East Asia Free Trade Area (EAFTA)]
Apr.
[Comprehensive Economic Partnership in East Asia (CEPEA)]
Study
Studyby
byJoint
JointExpert
ExpertGroup
Group
May
Phase
PhaseIIIIStudy
Study
Jun. Track
Track Two
TwoStudy
Study
4
1-4. From Bilateral EPAs to Region-wide Economic Integration
-the
-the deepening
deepening shift
shift from
from bilateral
bilateral economic
economic partnerships
partnerships to
to region-wide
region-wide economic
economic
integration
integration is
is taking
taking place
place in
in East
East Asia
Asia
-multi-layered
-multi-layered style
style of
of integration;
integration; ASEAN,
ASEAN, ASEAN+1,
ASEAN+1, ASEAN+3,
ASEAN+3, ASEAN+6,
ASEAN+6, APEC
APEC
ASEAN+1
ASEAN
ASEAN 10
-AFTA took effect in 1992
-Original member countries will
complete trade liberalization by
2010
(Thailand, Philippines, Malaysia,
Indonesia, Singapore, Brunei)
-New member countries will
complete trade liberalization by
2015 (Cambodia, Laos, Myanmar,
Vietnam)
Korea-ASEAN
Korea-ASEAN
China-ASEAN
China-ASEAN
trade
trade in
in goods
goods
takes
takes effect
effect in
in 2007
2007
trade
trade in
in goods
goods
took
effect
took effect in
in 2005
2005
Japan-ASEAN
Japan-ASEAN
India-ASEAN
India-ASEAN
aiming
aiming to
to reach
reach
Agreement
Agreement in
in 2007
2007
ASEAN+3
ASEAN+6
(ASEAN, Japan,
China, Korea)
(ASEAN, Japan, China,
Korea, India, Australia, NZ)
aiming
aiming to
to reach
reach
agreement
agreement in
in Nov.
Nov. 2007
2007
Australia,
Australia, NZ-ASEAN
NZ-ASEAN
aiming
aiming to
to reach
reach
agreement
agreement in
in 2007
2007
APEC
U.S.
Canada
Mexico
Peru
Chile
H.K.
Taiwan
Russia
-summer ‘06: feasibility study on EAFTA
finished. Commencement of
governmental study was recommended.
-Jan. ‘07: continuation of expert study
was decided at the summit meeting (the
phase II study has started in May ‘07)
Papua
New
Guinea
-Jan. ’07: commencement of Track
Two study on CEPEA was agreed
at the summit meeting
-Jun. ’07: the Track Two study on
CEPEA was commenced
Among the 10 countries of ASEAN, following
countries are not APEC member: Myanmar,
Cambodia, Laos
-Nov. ’06: studying for FTAAP as a
long term goal was agreed at the
summit meeting
5
1-5. Significance of AJCEP (ASEAN-Japan Comprehensive Economic Partnership )
Examples of trade in goods without AJCEP & under AJCEP
Without AJCEP
Japan
aE
PA
ys
i
ＣＥ
Ｐ
–
pa
n
ＡＪ
M
ala
ys
i
M
ala
–
pa
n
Ja
A
Ja
EP
(*)40% of the value added within the ASEAN region)
nd
The product doesn’t satisfy AFTA’s standard*
a
ail
② The component from Japan
gains added value of $30, and
final product worth $100 is
exported to Malaysia.
Th
A
EP
Thailand
Ｐ
ＣＥ
d
AFTA
ＡＪ
n
ila
ha
AFTA’s rules of origin cannot be inapplicable
Malaysia
① Export a component
($70) from Japan
npa
Ja
① Export a component
($70) from Japan
T
npa
Ja
aE
PA
Japan
Under AJCEP
applying AJCEP’s rules of origin
Malaysia
Thailand
AFTA
② The component from Japan
gains added value of $30, and
final product worth $100 is
exported to Malaysia.
The product doesn’t satisfy AFTA’s standard
HOWEVER
The product satisfies AJCEP’s standard*
(*)40% added value in the ASEAN-Japan region)
MFN tariff rate is applied to the product
exported to Malaysia
The product is exported untaxed to
Malaysia
6
1-6. “Basic Policies 2007”
(decided by the Cabinet on June 19, 2007)
[Provisional Translation]
Regarding to EPA, “Basic Policies 2007” is addressing the issues of (1) future work plan for EPAs with
countries constituting major markets and investment destinations, including U.S. and EU, (2) an EPA
covering ASEAN+6 countries, (3) realization of EPAs deep in quality and wide in coverage of economic
issues, (4)ideal forms of border measures, etc.
Ch.2
Ch.2 Enhancing
Enhancing Growth
Growth Potential
Potential
2.
2. Reforms
Reforms Addressing
Addressing Globalization
Globalization
(1)
(1) Strengthening
Strengthening Approaches
Approaches on
on WTO
WTO and
and EPA
EPA
2.
2. Strengthening
Strengthening Approaches
Approaches on
on EPA
EPA Negotiations
Negotiations
Following
Following the
the EPA
EPA timetable
timetable (attached),
(attached), work
work on
on EPA
EPA negotiations
negotiations with
with positive
positive attitudes.
attitudes. Consequentially,
Consequentially, by
by the
the beginning
beginning of
of
2009,
the
number
of
countries
Japan
has
concluded
EPAs
with
is
expected
to
increase
at
least
by
three
times
(12
countries).
2009, the number of countries Japan has concluded EPAs with is expected to increase at least by three times (12 countries).
EPA
EPA negotiations
negotiations are
are accelerating
accelerating in
in worldwide
worldwide scale,
scale, including
including the
the EPAs
EPAs with
with large
large economic
economic communities.
communities. Under
Under this
this worldwide
worldwide
circumstance,
circumstance, EPAs
EPAs with
with countries
countries constituting
constituting major
major markets
markets and
and investment
investment destinations,
destinations, including
including U.S.
U.S. and
and EU,
EU, are
are
to
be
considered
as
future
issues
for
Japan,
while
paying
attention
to
the
factors
such
as
the
movements
of
other
countries,
to be considered as future issues for Japan, while paying attention to the factors such as the movements of other countries,
status
status of
of economic
economic relationship
relationship between
between the
the potential
potential EPA
EPA partner
partner and
and Japan,
Japan, and
and size
size of
of the
the economy.
economy. Start
Start preparation
preparation for
for
EPAs
EPAs from
from possible
possible countries/regions.
countries/regions. Additionally,
Additionally, propel
propel study
study for
for region-wide
region-wide economic
economic partnership,
partnership, including
including the
the
proposal
proposal of
of economic
economic partnership
partnership covering
covering ASEAN+6
ASEAN+6 countries.
countries.
3.
3. Realization
Realization of
of High
High Quality
Quality EPAs
EPAs
Aim
Aim to
to conclude
conclude EPAs
EPAs with
with high
high quality,
quality, covering
covering trade
trade liberalization
liberalization and
and various
various other
other fields,
fields, such
such as
as trade
trade in
in service,
service,
investment,
investment, IPR
IPR etc.
etc.
4.
4. Border
Border Measures
Measures
Under
Under WTO
WTO and
and EPA
EPA negotiations,
negotiations, take
take initiatives
initiatives for
for narrowing
narrowing down
down the
the number
number of
of goods
goods protected
protected under
under border
border measures,
measures,
and
and lowering
lowering tariff.
tariff. Take
Take considerations
considerations on
on the
the ideal
ideal form
form of
of differential
differential tariff
tariff system.
system. Paying
Paying attention
attention to
to the
the progress
progress of
of
strengthening
the
nation’s
agriculture,
forestry,
and
fisheries
etc..
Take
systematic
measures,
restricted
on
the
measures
useful
strengthening the nation’s agriculture, forestry, and fisheries etc.. Take systematic measures, restricted on the measures useful
for
for structural
structural reform,
reform, for
for the
the effects
effects caused
caused by
by EPA.
EPA.
7
EPA timetable
country/region
Singapore
Mexico
(attachment to “Basic Policies 2007”)
[Provisional Translation]
Goals
current status
Taken effect. Aim to bring the amending protocol into effect
2002. Signed on the
Taken effect on Nov.
quickly.
amending protocol on Mar. 19th, 2007.
st
Taken effect on Apr. 1 , 2005. A protocol on the EPA
Taken effect.
has taken effect on Apr. 1st, 2007.
30th,
Took effect on Jul 13th, 2006.
Taken effect.
Approved by the National Diet on Dec. 6th, 2006.
Gain approval from the Upper House of the Philippines, and
bring the treaty in effect.
Signed on Apr. 3rd, 2007.
Aim to bring the treaty into effect as early as possible in 2007.
Chile
Signed on Mar. 27th, 2007.
Aim to bring the treaty into effect as early as possible in 2007.
Brunei
Signed on Jun. 18th, 2007.
Aim to bring the treaty into effect as early as possible in 2007.
Agreed in principle on Nov., 2006.
Aim to sign the treaty as early as possible in 2007.
Malaysia
Philippines
Thailand
Indonesia
ASEAN
Republic of Korea
Negotiation started in Apr. 2005.
Negotiation stopped since Nov. 2004.
With the cooperation from ASEAN, aim to conclude the
negotiation substantially as early as possible in 2007.
Continue to persevere in taking approaches to the Republic of
Korea for the resumption of negotiations.
Aim to reach agreement in principle on major points of the
negotiations as early as possible.
Aim to reach agreement in principle on major points of the
negotiations as early as possible.
Gulf Coast Countries
(GCC)
Negotiation started in Sep. 2006.
Vietnam
Negotiation started in Jan. 2007.
India
Negotiation started in Jan. 2007.
Aim to reach substantial agreement as early as possible, within
approximately two years from the commencement of negotiation.
Switzerland
Negotiation started in May 2007.
Aim to strengthen economic relationship, and formulate high
quality rules, covering not only trade in goods but also other wide
range of fields such as investment, trade in services, IPR etc.
Australia
Negotiation started in Apr. 2007.
Aim to gain the largest merit for Japan, under the policy of
“protect what has to be protected”, with thorough recognition of
the importance of agriculture, forestry, and fishery.
8
1-7. (reference) Ratio of Trading Value with EPA Partners
Trading status is as of July 24th, 2007
Trading values are based on Trade Statistics 2005 (MOF, Japan)
Trade Ratio with EPA Partners
Japan
Others,
14.0
Hong Kong,
3.4
With concluded & agreed countries: 14.0%
concluded,
agreed in
11.3
principle,
2.7
Taiwan, 5.5
negotiating
, 18.5
2.3
Mexico
0.9
Malaysia
2.4
Philippines
1.5
Chile
0.5
Thailand
3.4
Indonesia
2.7
Brunei
Korea
U.S.A., 17.8
6.4
Laos
0.002
Australia
Export Ratio with EPA Partners
Others,
15.4
Hong
Kong, 6.0
concluded,
11.9
agreed in
principle,
1.5
negotiating
, 13.2
Taiwan, 7.3
EU, 14.7
U.S.A., 22.5
China, 13.5
Import Ratio with EPA Partners
Others,
Hong Kong, 12.5
0.3
Taiwan, 3.5
EU, 11.4
0.22
Cambodia
0.02
With concluded, agreed & negotiating
countries/region: 32.4%
EU, 13.1
China, 17.0
Singapore
concluded,
10.6
3.3
Vietnam
0.7
GCC
8.0
Myanmar
0.03
India
0.6
Switzerland
Trading Ratio Between
U.S.A. and her FTA Partners
agreed in
principle,
4.0
concluded,
38.9
0.6
Trading Ratio Between
South Korea and her FTA Partners
concluded,
25.4
others, 14.3
negotiating,
24.5
China, 21.0
U.S.A., 12.4
With concluded & agreed countries:
13.4%
With concluded & agreed countries:
14.6%
With concluded, agreed & negotiating
countries/region: 26.6%
With concluded, agreed & negotiating
countries/region:
39.2%
considering,
26.6
others, 57.3
negotiating,
33.7
negotiating,
3.9
With concluded countries: 38.9%
With concluded countries: 25.4%
With concluded &
negotiating countries: 42.7%
With concluded & negotiating
countries: 59.1%
9
1-8. (reference 2) EPA/FTA Negotiations of Major Countries/RegionsAs of 24th July, ‘07
countries
/regions
situation
in effect /
concluded
19
U.S.
Mercosur
Chile, El Salvador, Honduras,
Nicaragua, Guatemala, NAFTA,
Morocco, Bahrain, Jordan, Israel,
Australia, Singapore, Peru,
Columbia, Oman, Costa Rica,
Dominican Republic, Korea,
Panama
under negotiations
7
Ecuador, FTAA, SACU, UAE,
Malaysia, Thailand
under consideration
2
ASEAN, FTAAP
in effect /
concluded
22
Mexico, Chile, Algeria, Tunisia,
South Africa, Morocco, Egypt,
overseas territories, Switzerland,
Andorra, Iceland, Norway,
Liechtenstein, Turkey, Faroe islands,
Macedonia, Croatia, Syria, Palestine,
Israel, Jordan, Lebanon
under negotiations
4
ACP, GCC, Mercosur, Korea
under consideration
5
ASEAN, India, Latin America region,
Andean Community, Mediterranean
Community
EU
Australia
countries
/regions
countries
/regions
in effect /
concluded
4
Thailand, U.S., NZ, Singapore
under negotiations
5
China, ASEAN, Malaysia, GCC,
Japan
under consideration
3
Korea, Chile, East Asia
in effect /
concluded
3
SACU, India, Andean Community
India
China
3
GCC, Israel, FTAA
under consideration
3
EU, Pakistan, Korea
countries/
regions
in effect /
concluded
5
Singapore, Mercosur, Sri
Lanka, Nepal, Bhutan
under negotiations
6
Japan, ASEAN, Thailand,
Egypt, Korea, GCC
under
consideration
7
East Asia, EU, South Africa,
China, BIMSTEN, SAARC,
FTAAP
in effect /
concluded
4
Chile, ASEAN, Hong Kong,
Macao
under negotiations
6
NZ, Australia, Pakistan,
GCC, SACU, Singapore
under
consideration
7
East Asia, Iceland, India,
Korea, Japan-China-Korea,
FTAAP, Switzerland
in effect /
concluded
5
Chile, Singapore, EFTA,
ASEAN, U.S.
under negotiations
5
India, Mexico, Canada,
Japan, EU
under
consideration
9
East Asia, FTAAP, China,
Mercosur, NZ, South Africa,
Japan-China-Korea,
Australia, GCC
in effect /
concluded
7
Singapore, Mexico,
Malaysia, Philippines, Chile,
Thailand, Brunei
under negotiations
8
Indonesia, India, Viet Nam,
Australia, Switzerland,
Korea, GCC, ASEAN
under
consideration
4
East Asia, FTAAP, JapanChina-Korea, South Africa
Korea
Japan
under negotiations
situation
Information based on various reports and governments’ press releases.
There could be information omitted in some fields.
10
2. “East Asia Initiative”
11
2-1. “East Asia Initiative”
Promote
Promote the
the economic
economic integration
integration of
of East
East Asia
Asia through;
through;
(1)
(1) trade/investment
trade/investment liberalization
liberalization and
and system
system facilitation
facilitation by
by CEPEA,
CEPEA,
(2)
(2) narrowing
narrowing economic
economic gap
gap in
in the
the region
region by
by ERIA
ERIA
ERIA
CEPEA
(Comprehensive Economic Partnership in East Asia)
(Economic Research Institute
for ASEAN and East Asia)
trade/investment liberalization,
system facilitation
cooperation,
narrowing economic gap
forming economic partnership by
ASEAN-plus-six* countries
making intellectual contribution, such
as policy recommendation, for the
sustainable development of East Asia
(*) Japan, China, Korea, India, Australia, NZ
strengthen industrial
competitiveness of the
region, by promoting the
formation of efficient
production network
the Japanese style
approach, which promote
both (1) liberalization and
system facilitation, and (2)
narrowing the economic gap
through cooperation
keeping the
complementary
relationship with APEC, by
placing this initiative under
the multi-layered cooperation
mechanisms in Asia
the prosperity brought by economic integration of
East Asia will connect Japan’s economy with Asia’s growth
12
2-2. What is Behind “East Asia Initiative” –Trade Structures of East Asia2-2-1. Closely Connected Economic Zone
Ratio
Ratio of
of intra-regional
intra-regional trade
trade in
in East
East Asia
Asia has
has been
been increasing:
increasing:
The
The ratio
ratio of
of East
East Asia
Asia is
is deeper
deeper than
than the
the ratio
ratio of
of North
North America
America (NAFTA),
(NAFTA), and
and
almost
almost equal
equal to
to that
that of
of EU
EU (15
(15 countries).
countries).
70
(%)
ratio of intraregional trade
65
EU regional market integration
process completed
EU (15 countries)
EURO started
60%
60
57%
ASEAN
CEPT started
55
54%
ASEAN+6
50
ASEAN+3
(ASEAN, Japan, China, Korea, India, Australia, NZ)
(ASEAN, Japan, China, Korea)
45
45%
40
38%
NAFTA came in effect
NAFTA
35
30
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
(c.f.) ASEAN+6: Hong Kong and Taiwan included
(reference) DOT (IMF)
Trade Statistics (Board of Foreign Trade, Taiwan, Chinese Taipei) (http://eweb.trade.gov.tw/default.asp/)
2002 (year)
13
2-2-2. East Asia’s Importance as Trade Partners for Japan
Japan’s trade structure, by region (2005)
Middle & other
South region
America 2.1%
3.7%
MexicoChile
0.9%
50.0% is covered by
the trade with East
Asia, including Australia,
North
America
19.4% U.S.
17.8%
New Zealand and India
East Asia: ASEAN, Korea, China,
Hong Kong, Taiwan,
Australia, India,
New Zealand
Europe, ＥＵ
Russia 13.2%
15.4%
0.5%
China, Hong Kong,
Macao, Taiwan
25.9%
Japan's Trade
Value
(import &
export)
ＧＣＣ Australia
8.0% 3.3%
East Asia
Korea 50.0%
6.4%
ASEAN
13.3%
India
Middle East Ｎ Ｚ
0.6%
9.4%
0.4%
reference: Trade Statistics
of Japan
(Ministry of Finance)
ASEAN: Thailand, Philippines, Singapore, Malaysia, Indonesia, Brunei, Vietnam,
Myanmar, Laos, Cambodia
GCC: Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain
EFTA: Switzerland, Iceland, Norway, Liechtenstein
Mercosur: Brazil, Argentine, Uruguay, Paraguay
SACU: South Africa, Lesotho, Botswana, Namibia
14
2-2-3. Deepening Relationships between East Asia and Other Regions
In
In addition
addition to
to rapidly
rapidly increasing
increasing Japan-East
Japan-East Asia
Asia trade,
trade, East
East Asia-U.S.
Asia-U.S. trade
trade
and
and East
East Asia-EU
Asia-EU trade
trade are
are also
also increasing
increasing sharply.
sharply.
The
The fact
fact of
of Japanese
Japanese companies
companies making
making production
production in
in East
East Asia
Asia contribute
contribute
aa lot
lot to
to this
this tendency.
tendency.
1994
unit: million dollar
Japan -> EU
67,602
Japan
unit: million dollar
Japan -> EU
85,875
Japan -> U.S.
119,149
U.S. -> Japan
62,848
EU -> Japan
53,407
2004
Import
&
Export
EU -> East Asia
129,300
EU
U.S.
East Asia -> Japan
90,875
96,146
East Asia -> EU
130,983
East Asia -> U.S.
146,737
East Asia*
Reference: White Paper on International Economy and Trade 2006
U.S. -> Japan
62,563
Japan -> East Asia
290,753
U.S.
East Asia -> Japan
196,348
EU -> East Asia
181,317
U.S. -> East Asia
Japan -> U.S.
129,805
EU -> Japan
77,022
Japan -> East Asia
168,761
EU
Japan
East Asia -> EU
293,589
U.S. -> East Asia
108,183
East Asia -> U.S
367,863
East Asia*
(*) in this page, “East Asia” stands for: ASEAN5 (Singapore, Indonesia, Philippines, Thailand, Malaysia),
China, H.K., Taiwan, Korea
15
2-3. Comprehensive Economic Partnership in East Asia (CEPEA)
-Aiming
-Aiming to
to form
form an
an EPA
EPA among
among ASEAN
ASEAN plus
plus six
six (ASEAN
(ASEAN and
and its
its FTA/EPA
FTA/EPA partners;
partners;
China,
China, Japan,
Japan, Korea,
Korea, India,
India, Australia,
Australia, and
and New
New Zealand).
Zealand). CEPEA
CEPEA will
will contribute
contribute to
to
achievement
achievement of
of further
further developing
developing regional
regional production
production network
network unique
unique to
to this
this region.
region.
-By
-By covering
covering wide
wide range
range of
of issues
issues (trade
(trade in
in goods,
goods, trade
trade in
in service,
service, investment,
investment,
intellectual
intellectual property,
property, etc.),
etc.), CEPEA
CEPEA will
will contribute
contribute to
to build
build free,
free, fair
fair and
and rule-based
rule-based
market
market economy.
economy.
India
under
negotiation
Japan
case of
electronics
manufacturers
under
negotiation
India
Australia,
NZ
CEPEA
China
nt
s
signed
ne
Korea
took effect
co
China
Example of regional production network
Korea
Korea
Japan
m
po
FTA/EPAs with ASEAN
under negotiation
Vietnam etc.
du
pro
l
a
fin
pon
com
ents
ct
Thailand etc.
Australia, NZ
ASEAN
Schedule
Jan. 2007
East Asia Summit
agreed to commence
track-two study
(by Japan’s proposal)
Jun. 2007
commencement of
track-two study
Nov. 2007
East Asia Summit
report from tracktwo study group
consider
further
plans
16
2-4. Plans for Regional Economic Integration in East Asia
2006
ASEAN disagreed of moving
to governmental study
ASEAN+6
Economic Partnership Covering
ASEAN, Japan, China, Korea,
India, Australia, New Zealand
(c.f.) OECD-like organization in East Asia
(summer
’06)
Welcomed at the ASEAN Plus
Three Summit
Phase I
Agreed at the East Asia Summit
(’05 – summer ’06)
NOW
Korea’s proposal
Economic
Partnership Covering
ASEAN, Japan,
China, Korea
feasibility
study by
expert group
Japan’s proposal
ASEAN+3
China’s proposal
2005
2007~
continuation of
study by expert
group
(’07-)
Phase II
study by expert
group
(’07-)
establishment of ERIA
(‘07)
17
2-5. Economic Research Institutes for ASEAN and East Asia (ERIA)
z For the sustainable economic growth in East Asia, we have to address not only Trade/Investment liberalization
through FTA/EPAs but also wide range of policy issues such as Human Resources, Infrastructure
Development, Economic Development Gaps, Energy Security/Environment Degradation, etc.
z ERIA will make intellectual contribution to the regional efforts driven by ASEAN through policy studies and
recommendations. ERIA will be developed step by step in cooperation with the countries in the region.
Economic Integration in East Asia
Intra ASEAN
ASEAN+1
ASEAN+3
Roadmap Plan
ASEAN+6
- January 2007
(ASEAN Summit / EAS)
Welcome the Proposal
Policy
recommendation
- August 2007
(AEM with Dialogue Partners)
Agree on Outline Structure, etc
A S E A N
Driving force
Strong partnership
with
existing institutions
Making policy recommendations
Providing research and analysis reports
- November 2007
(ASEAN Summit / EAS)
Welcome the Establishment
Advice on research and analysis
¾Conducting joint research
¾Dispatching researchers etc.
Such as；
• Australia: ANU
• Brunei: BDIPSS
• Cambodia: CICP
• China: CASS
• India: RIS
• Indonesia: CSIS
• Japan: IDE/JETRO
• Korea: KIEP
• Laos: NERI
• Malaysia: MIER
• Myanmar: YIE
• New Zealand: NZIER
• Philippine: PIDS
• Singapore: SIIA/ISEAS
• Thailand: TDRI
• Vietnam: CIEM
• Asian Development Bank
etc…
Economic Research Institute
for ASEAN and East Asia (ERIA)
¾ will be established in the ASEAN region
¾Contribution, etc
Japan
Research
Institute
Business
Government
¾(Contribution, etc)
Countries
mainly in East Asia
Research
Institute
Business
Government
For less
Developed
Countries
•Capacity Building
of Policy makers
and Researchers
etc…
Example of research themes
Not only Trade/Investment
But also
・Human Resources
・Supporting Industry
・Small and Medium Enterprises
・Distribution, Infrastructure
・ Energy /Environment
・Intellectual property
・Standards and Conformity
Assessment
・Capacity Building etc.
18
Recent and Upcoming Events on ERIA
Jan., 2007 : Second East Asia Summit
(Cebu, Philippines)
-PM Abe made proposal of establishing ERIA
-The proposal was welcomed by all the summit
members of East Asia region
Discussions with countries in the region,
further concrete the plan
Aug., 2007 : East Asia Economic Ministers Meeting
Nov., 2007 : Third East Asia Summit
(Singapore)
-official establishment of ERIA, and the headquarter
location will be decided (through ASEAN’s affirmation)
-mid-term report of the Track Two study on CEPEA
(Agreement on AJCEP is necessary for this)
19
2-6. The Architecture of the Asia-Pacific Region
-- “ASEAN+1”
“ASEAN+1” FTAs/EPAs,
FTAs/EPAs, with
with ASEAN
ASEAN as
as their
their hub,
hub, are
are being
being formulated
formulated in
in East
East Asia.
Asia. Generally,
Generally, the
the main
main
focus
focus of
of “ASEAN+1”
“ASEAN+1” FTAs/EPAs
FTAs/EPAs is
is on
on trade
trade in
in goods.
goods. Works
Works for
for FTAs/EPAs
FTAs/EPAs between
between ASEAN’s
ASEAN’s
neighboring
neighboring countries
countries are
are also
also beginning
beginning gradually.
gradually.
Under
Under such
such circumstance,
circumstance, Japan
Japan is
is working
working on
on comprehensive
comprehensive and
and high
high quality
quality EPAs,
EPAs, and
and also
also proposing
proposing
“CEPEA”,
“CEPEA”, an
an EPA
EPA covering
covering ASEAN+6
ASEAN+6 nations.
nations.
-U.S.
-U.S. also
also aspires
aspires to
to comprehensive
comprehensive and
and high
high quality
quality FTAs.
FTAs.
America’s
FTA
network
is
being
gradually
formulated
America’s FTA network is being gradually formulated in
in the
the region,
region, and
and U.S.
U.S. is
is also
also proposing
proposing “FTAAP”,
“FTAAP”,
an
free
trade
area
of
Asia-Pacific.
an free trade area of Asia-Pacific.
ASEAN
+3/+6
Canada
NAFTA
China ROK
ASEAN
+1
ASEAN
+1
ASEAN
+1
Thailand
Japan
ＡＳＥＡＮ
Malaysia
ASEAN+1
India
U.S.
Mexico
Singapore
ASEAN+1
Brunei
Listing major FTAs/EPAs
NZ
Australia
took on effect
P4
Chile
negotiating/preparing
for negotiations
has not taken effect
APEC
20