fbpx

Japan Expands Free Trade Agreements to Bolster Security

Japan is intensifying its pursuit of new free trade agreements (FTAs) to bolster economic security and resilience amid a turbulent global trade environment. Already covering 80% of its trade through major agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Japan-EU Economic Partnership Agreement, and the Regional Comprehensive Economic Partnership (RCEP), Japan continues to seek additional FTAs.

In 2024, Japan relaunched FTA negotiations with the Cooperation Council for the Arab States of the Gulf, began talks with Bangladesh, and is consulting to start negotiations with South America’s Mercosur. Prime Minister Fumio Kishida also agreed to restart trilateral FTA talks with China and South Korea. Despite the modest economic gains expected from these new agreements, Japan aims to enhance geoeconomic benefits and secure supply chains, particularly for natural resources.

Japan Expands Free Trade Agreements to Bolster Economic Security

The COVID-19 pandemic and Russia’s invasion of Ukraine highlighted vulnerabilities in global supply chains, increasing Japan’s focus on securing essential inputs. Japan has made strides in this area with the 2024 Supply Chain Agreement under the Indo-Pacific Economic Framework and a Critical Minerals Agreement with the U.S. However, FTAs remain crucial for connecting with resource-rich regions like the Middle East and South America.

Japan’s FTA strategy also addresses global protectionism and economic coercion. With increasing protectionist tendencies in the U.S., Europe, and the Global South, Japan’s FTAs are vital for maintaining an open global trade regime. The resumption of China-Japan-South Korea trilateral FTA negotiations aims to integrate CPTPP rules on subsidies, state-owned enterprises, and digital commerce, countering China’s trade practices and promoting a rules-based order.

As Japan navigates a complex geopolitical landscape, its evolved FTA strategy is key to addressing supply chain issues and resisting economic coercion, underpinning its economic stability and growth.

For the analysis and updates, visit FXAN to stay informed on the latest news and insights. Also, follow us on Instagram.

Subscribe to Newsletter

Hot Categories

FXAN is a leading provider of sophisticated trading algorithms designed to enhance your trading experience. Through strategic partnerships with esteemed industry leaders, our algorithms are rigorously developed to meet the highest standards of excellence.

Discord Instagram Youtube Facebook

Product

Resources

Company

PARTNERS

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. 

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Live Trade Room Disclosure:  This presentation is for educational purposes only and the opinions expressed are those of the presenter only. All trades presented should be considered hypothetical and should not be expected to be replicated in a live trading account. 

Testimonial Disclosure:  Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.