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Impacts of the Japan-Mexico EPA on Bilateral Trade

Author

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  • ANDO Mitsuyo
  • URATA Shujiro

Abstract

This paper examines the impacts of the Japan-Mexico EPA on bilateral trade by using two different types of information, trade statistics and the EPA utilization rate. Using trade data, we found that Japan's exports of built-up cars, auto parts, base metals, electrical machinery, precision machinery, and ballpoint pens to Mexico increased sharply. We also found that Japan's imports of live animals and products, leather, and footwear with leather from Mexico increased significantly. These are some of the products that are protected by the respective governments. Using the results of a questionnaire survey of Japanese firms on their utilization of the Japan-Mexico EPA, the overall utilization rate was found to be rather low. However, the utilization rate for Japanese exports to Mexico was found to be high for iron and steel and transport machinery, which are the products most protected by the Mexican government. These findings indicate that the EPA has contributed to the opening up of Japan's and Mexico's protected markets. The questionnaire survey identified two problem areas for the EPA: one is the difficulty in getting information on the use of the EPA, and the other is the high cost of obtaining the certificate of origin for utilizing the EPA. These findings indicate the need for the government to provide information on the use of EPAs and to simplify the application procedures for obtaining the certificate of origin.

Suggested Citation

  • ANDO Mitsuyo & URATA Shujiro, 2011. "Impacts of the Japan-Mexico EPA on Bilateral Trade," Discussion papers 11020, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:11020
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    File URL: https://www.rieti.go.jp/jp/publications/dp/11e020.pdf
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    References listed on IDEAS

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    1. Takahashi, Katsuhide & Urata, Shujiro, 2010. "On the Use of FTAs by Japanese Firms: Further Evidence," Business and Politics, Cambridge University Press, vol. 12(1), pages 1-15, April.
    2. Christopher Findlay & Shujiro Urata (ed.), 2009. "Free Trade Agreements in the Asia Pacific," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 7253, January.
    3. TAKAHASHI Katsuhide & URATA Shujiro, 2008. "On the Use of FTAs by Japanese Firms," Discussion papers 08002, Research Institute of Economy, Trade and Industry (RIETI).
    4. Katsuhide Takahashi & Shujiro Urata, 2009. "On The Use Of Free Trade Agreements By Japanese Firms," World Scientific Book Chapters, in: Christopher Findlay & Shujiro Urata (ed.), Free Trade Agreements In The Asia Pacific, chapter 7, pages 241-257, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Okabe, Misa & Urata, Shujiro, 2014. "The impact of AFTA on intra-AFTA trade," Journal of Asian Economics, Elsevier, vol. 35(C), pages 12-31.

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