Countries like China, South Korea and Japan may boast of low tariffs but they have erected huge non-tariff barriers (NTBs), most of which are tailored to mask the ferocity of trade protectionism, in a bid to control the imports they deem undesirable.
Tokyo wants to abolish tariffs on cars, which account for the largest amount of its exports to the UK.
Under the deal, Japan reduced tariffs on US agricultural products. Japan has much to fear if Trump seeks broader trade pact.
For New Delhi, though, RCEP is first and foremost an economic deal that could hurt its more vulnerable industries and lead to near-term pain.
Top trade officials from South Korea, China and Japan agreed to accelerate their trilateral free trade talks and ramp up efforts to conclude a mega Asia-Pacific trade deal.
Whereas Japan took the lead to establish the TPP without the United States, Tokyo does not desire a RCEP without India because it would create a China-led trading bloc.
A news report on the current cooperation of China, Japan and the ROK in tackling the issue of unbalanced regional development.
Among the FTAs which have affected Indian domestic industry adversely, the India-Korea CEPA, signed in 2009, has been significant.
Despite India’s decision to walk out of the ASEAN-led 15-nation RCEP Free Trade Agreement last month, officials from India’s Indo-Pacific partners Australia and Japan are still discussing the issue in the hope that the government will rethink the decision.
The Japanese government will also be worried about a sluggish economy and there will be no appetite for liberalization measures that impose pain on Japanese businesses.
The United States and Japan will begin consultations early 2020 in order to enter into negotiations on a broader trade agreement.
The Japan-US trade agreement designed to reduce or eliminate a broad range of import tariffs was approved by majority vote of the ruling Liberal Democratic Party and others in the upper house of the Diet.
Japan may refrain from signing an India-less Regional Comprehensive Economic Partnership (RCEP).
Abe seeks to bolster India ties to balance China’s clout.
India and Japan did not make any tangible progress on some of the sticky issues facing both sides, mainly on a breakthrough in the civil nuclear deal, acquisition of Amphibious aircraft or progress in the bullet train project.
Keen to have India back in the Regional Comprehensive Economic Partnership (RCEP), Japan has reached out to New Delhi to help address its concerns including those on trade deficit.
The two Asian powerhouses have recently been locked in a trade dispute but tensions “have de-escalated compared to what the situation was in summer,”
Weeks after India decided not to join RCEP, the government on Wednesday said that it had sought a review of its existing trade agreements with the ASEAN and Japan.
China, South Korea and Japan will hold a new round of negotiations on the trilateral free trade agreement (FTA) this week in Seoul.
Turkey and Japan aim to finalize negotiations on an economic partnership deal by the end of 2019.