Japanese Trade Policy: Has Japan Jumped on the Bandwagon of Bilateralism

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2015-05

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University of Hawaii at Manoa

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Since its reopening to the rest of the world in 1868, Japan’s economy and trade policy have continued to evolve an prosper. However, in less than 50 years following the conclusion of World War II, Japan has propelled itself to becoming the world’s 3rd largest economy. Japan’s trade policy like the state of its economy has changed as well. In 50 years following the end of World War II a significant amount of trade liberalization occurred under the auspices of the General Agreement on Tariffs and Trade (GATT), and it’s successor the World Trade Organization (WTO). The formation of free trade agreements (FTAs) is a relatively new phenomenon not only in Asia, but worldwide. However, since the early 1990s the number of free trade agreements (FTAs) has skyrocketed. Despite their popularity in other parts of the world, FTAs were almost nonexistent in Asia until the formation of the Japan-Singapore FTA (JSEPA) in 2002. Using a qualitative choice model this paper attempts to identify the economic and political factors that determine the formation of FTAs in the case of Japan.

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Japan, FTA, Trade, Policy

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41 pages

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