A Regional Free Trade Agreement Will Benefit The World Only When

(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. It is also important to note that a free trade agreement is a reciprocal agreement that is authorized by Article XXIV of the GATT. Autonomous trade agreements for developing and least developed countries are permitted by the 1979 decision by the signatories of the General Agreement on Tariffs and Trade (GATT) (“empowerment clause”) on differentiated and more favourable treatment, reciprocity and increased participation of developing countries. It forms the legal basis for the WTO`s Generalized Preference System (GSP). [13] Free trade agreements and preferential trade agreements (as mentioned by the WTO) are considered an exception to the MFN principle. [14] Given Chile`s customs structure, the volume of trade with Japan and its major exports to Japan, the conclusion of an economic partnership agreement or a free trade agreement with Chile could be seen as a medium- and long-term task rather than an urgent task of the utmost importance. (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. The market access card was developed by the International Trade Centre (ITC) to support companies, governments and market access researchers.