(2) Japan`s free trade agreement strategy – the specific points to be considered by Japan`s major trading partners are East Asia, North America and Europe, three regions accounting for 80% of Japan`s trade. Compared to free trade agreements with the countries of North America and Europe, all of which are industrialized countries, free trade agreements with East Asia will bring the greatest additional benefits through further liberalization. As can be seen from the simple averages of tariff rates (United States, 3.6%; European Union, 4.1%; China, 10%; Malaysia, 14.5%; Republic of Korea, 16.1%; Philippines 25.6%; and Indonesia, 37.5%, East Asia, the region where Japanese products accounted for the highest share of trade, has the highest tariffs. Trade liberalization with East Asia will help facilitate the activities of Japanese companies that face competition from ASEAN and China and, in many cases, have relocated their production sites to sites in East Asia. Other objectives include other objectives that are slipping into Japan`s bilateral trade agenda: in early 2005, Japan began exploring possible discussions with Switzerland and negotiations began in 2007. In 2006, spurred on by concerns about access to energy resources, Japan pledged to restart discussions for a free trade agreement with Kuwait and other oil and Gas countries of the Gulf Cooperation Council (GCC). Japanese companies are also increasingly concerned about international trade disadvantages, leading to free trade agreements with Brazil, South Africa, New Zealand and even some pious rhetoric about a U.S.-Japan deal. At the end of 2011, Japan expressed interest in negotiating a free trade agreement with Burma. In March 2012, signs of the free trade agreement with Mongolia and Canada were announced. (1) Fullness, Flexibility, Selectivity At present, it would be possible to base future agreements on our economic partnership agreement with Singapore, but we should retain flexibility and consider the possibility of a «Singapore plus» or «Singapore less» approach. It may be possible to plan in advance for certain areas (such as investments and services) or to conclude an economic partnership agreement limited to these areas.

(1) Free trade agreements with economic benefits have the effect of increasing import and export markets, moving to more efficient industrial structures and improving the competitive environment. In addition, free trade agreements help reduce the likelihood that economic frictions will become political problems and help expand and harmonize existing trade-related rules and systems. (2) The political and diplomatic benefits of trade agreements strengthen Japan`s negotiating power in WTO negotiations and the outcome of free trade negotiations could influence and accelerate WTO negotiations. Deepening economic interdependence leads to a sense of political trust between the countries that are parties to these agreements and expands Japan`s global diplomatic influence and interests. (2) The European Union and the United States are pursuing a policy focused on both WTO negotiations and the creation of large-scale regional trade frameworks. The current round of WTO negotiations could be the last multilateral trade negotiation before the creation of these broad integrated regional frameworks. It is necessary for Japan to also look not only at the WTO negotiations, but also at the trends of the free trade agreement in strengthening its economic relations with other countries. Discover the current trade relationship between the EU and Japan Under the leadership of President Trump, the Us and Japan have agreed on early results of market access negotiations for certain agricultural and industrial products and digital trade.