Japan Trade Agreement Vs Tpp

Japan Trade Agreement vs TPP: What’s the Difference?

Japan has long been a major player in international trade. As the world’s third-largest economy, Japan has a lot to offer in terms of exports and imports. In recent years, Japan has been involved in two major trade agreements: the Japan Trade Agreement and the Trans-Pacific Partnership (TPP).

So, what exactly are these trade agreements, and what is the difference between them?

Japan Trade Agreement

The Japan Trade Agreement, also known as the Japan-Australia Economic Partnership Agreement (JAEPA), is a bilateral trade agreement between Japan and Australia. It came into effect on January 15, 2015, and is the first bilateral free trade agreement that Japan has ever signed.

Under the Japan Trade Agreement, both Japan and Australia agreed to remove tariffs on a wide range of goods and services, including beef, wine, and dairy products. In addition, the agreement contains provisions to promote investment and protect intellectual property rights.

The Japan Trade Agreement was seen as a major win for both countries, as it would allow Australian exporters to have better access to the Japanese market, while also providing Japanese companies with access to lower-priced Australian goods.

Trans-Pacific Partnership (TPP)

The TPP is a multilateral trade agreement between 12 countries, including Japan, Australia, Canada, Mexico, and the United States. The agreement was negotiated between 2010 and 2015, and was signed in February 2016, but was not ratified by all member countries and did not come into force.

The TPP aimed to create a comprehensive free trade area in the Asia-Pacific region by removing tariffs and other barriers to trade. In addition, the agreement contained provisions on labor rights, environmental protection, and intellectual property rights.

The TPP was seen as a potential game-changer for international trade, as it would have created a huge trading bloc that represented 40% of the world’s GDP. However, the agreement faced significant opposition in the United States and ultimately did not come into force.

Key Differences

While both the Japan Trade Agreement and the TPP are free trade agreements aimed at promoting international trade, there are some key differences between them.

First, the Japan Trade Agreement is a bilateral agreement between Japan and Australia, while the TPP is a multilateral agreement between 12 countries. This means that the Japan Trade Agreement is more limited in scope than the TPP, as it only covers two countries.

Second, the Japan Trade Agreement is already in force, while the TPP is not. The TPP has faced significant opposition in some of its member countries, particularly the United States, which ultimately withdrew from the agreement in 2017.

Finally, the TPP contained more provisions on labor rights, environmental protection, and intellectual property rights than the Japan Trade Agreement. This reflects the fact that the TPP was a more comprehensive agreement that aimed to create a more integrated and sustainable trading system.

Conclusion

In conclusion, while both the Japan Trade Agreement and the TPP are aimed at promoting international trade, they are significantly different from one another. The Japan Trade Agreement is a bilateral agreement between two countries that is already in force, while the TPP is a multilateral agreement that has yet to come into force and faces significant opposition in some of its member countries. Despite these differences, both agreements are important steps towards creating a more open and integrated global trading system.