Shortly after reports emerged about the prospects for free trade across the North Atlantic, the European Union and Japan announced plans to explore possibilities for free trade between them at talks scheduled for April. The hope is to reignite economic growth on both sides.

We have an opinion from Professor Maxim Bratersky of Moscow’s High Economic School:

"Free trade across the North Atlantic should be in place by 2014 and involve the EU, the United States and Canada. Naturally, Japan, too, hopes it can put an end to its 20-year stagnation by getting involved in free trade arrangements. Now, Japan and the EU appear to have agreed that they should join forces in combating their economic woes."

Throughout the postwar period, Japan has been adhering to the ‘save, not spend’ and ‘export, not consume at home’ principles. Accordingly, the current administration of Shinzo Abe sees export expansion as its country’s main development vehicle.

Professor Valeri Kistanov of the Institute of the Far East of the Russian Academy of Sciences speaks about the role of European markets in Japan’s trade:

"The EU accounts for 10% of the Japanese export, which makes it Japan’s third biggest export customer after the US and China. The EU massively imports Japanese electronics, motor vehicles and vehicle parts. The industries turning out these products are Japan’s economic mainstays."

According to available estimates, abolishing European duties on these products could help Japan boost its export by 30% and create about 400,000 jobs.

Europe is not the only area where Japan is seeking free trade arrangements. Professor Kistanov again:

"Japan is also conducting free trade talks with China and South Korea, If successful, they will lead to the creation of the world’s most important free trade area. Indeed, China is the world’s second biggest economy, Japan, third, and South Korea, 15th. Lingering territorial disputes are unlikely to be an obstacle."


 

Voice of Russia