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Changing Commercial Policy in Japan During 1985–2010

  • Masahiro Kawai

    (Asian Development Bank Institute)

  • Shujiro Urata

In this paper we examine the changing nature of Japans commercial policy over the last 25 years while reviewing Japans changing structure of trade, FDI and economy that underlay policy changes. We argue that until the late 1990s Japan adopted a two-track approach of relying on multilateral liberalization under the GATT/WTO and open regionalism under Asia-Pacific Economic Cooperation (APEC) on the one hand and on the bilateral trade relationship with the US on the other. Although the Japan-US bilateralism sometimes resulted in managed trade and encountered negative perceptions of the US approach in Japan, overall, it had a positive impact on the Japanese economy in opening domestic markets through various reforms and deregulation measures. Japans more recent commercial policy focuses on bilateral and plurilateral economic partnership agreements particularly withbut not limited toEast Asian economies. We argue that agricultural sector liberalization is key to the further integration of Japan with the Asian and global economies.

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File URL: http://www.eaber.org/node/23056
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Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 23056.

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Date of creation: Jan 2010
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Handle: RePEc:eab:tradew:23056
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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  1. Mireya SOLÍS & Shujiro URATA, 2007. "Japan's New Foreign Economic Policy: A Shift Toward a Strategic and Activist Model?," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(2), pages 227-245.
  2. Kawai, Masahiro & Takagi, Shinji, 2009. "Why was Japan Hit So Hard by the Global Financial Crisis?," ADBI Working Papers 153, Asian Development Bank Institute.
  3. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
  4. Prema-chandra Athukorala, 2003. "Product Fragmentation and Trade Patterns in East Asia," Departmental Working Papers 2003-21, The Australian National University, Arndt-Corden Department of Economics.
  5. Kawai, Masahiro & Wignaraja, Ganeshan, 2011. "Asian FTAs: Trends, prospects and challenges," Journal of Asian Economics, Elsevier, vol. 22(1), pages 1-22, February.
  6. Gary R. Saxonhouse, 1993. "What Does Japanese Trade Structure Tell Us about Japanese Trade Policy?," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 21-43, Summer.
  7. repec:cup:cbooks:9780521583664 is not listed on IDEAS
  8. Robert Z. Lawrence, 1991. "Efficient or Exclusionist: The Import Behavior of Japanese Corporate Groups," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 311-341.
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