Overview
2009 - 2010
A free trade agreement (FTA) is an arrangement, under which trade barriers such as import tariffs on trade between FTA members are eliminated. FTAs increased sharply in the early 1990s and the pace of the increase has accelerated since the establishment of the World Trade Organization in 1995. Slow progress in multilateral trade negotiation is a very important factor behind the rapid increase of FTAs. The objective of this research project is to discern the impacts of FTAs on the foreign trade of FTA members. The analysis process is two-fold. First, researchers examine the usage of FTAs by companies, and then they investigate the impacts of FTAs on foreign trade. The countries selected for this study are Japan, China, South Korea, Thailand, and Australia.
2007 - 2008
In recent years, there has been a rapid increase in the number of free trade agreements (FTAs) in which trade is liberalized between designated countries. While FTAs expand the level of trade between member countries, they are very likely to divert and suppress trade with non-members. FTAs affect the economies of member and non-member countries through these two effects. The purpose of this project is to examine the impact of FTAs on trade and domestic economic activities by undertaking pre- and post-FTA analysis. Pre-FTA analysis is based on data from the period prior to the establishment of an FTA and features the running of simulations using general equilibrium models. Post-FTA analysis is based on actually observed data and uses gravity models to examine the determinants of bilateral trade. This project covers the FTAs established by Japan and other FTAs established throughout the world. For Japan's FTAs, the project also analyzes the level of use of the FTA by firms. Drawing on the results of these analyses, this project aims to determine the impact of FTAs on trade and domestic economic activities, and to provide useful information for the design of FTA policies by the Japanese government.
July 26, 2007 - March 31, 2011
Major Research Results
Major Research Results
2010
RIETI Discussion Papers
11-E-020
"Impacts of the Japan-Mexico EPA on Bilateral Trade" (ANDO Mitsuyo and URATA Shujiro)
10-E-042
"Use of FTAs in Australia" (Richard POMFRET, Uwe KAUFMANN and Christopher FINDLAY)
10-E-039
"Exporters' Response to FTA Tariff Preferences: Evidence from Thailand" (Archanun KOHPAIBOON)
10-E-038
"Business Use of FTAs in Korea" (Inkyo CHEONG, Hansung KIM and Jungran CHO)
RIETI Policy Discussion Papers
2009
RIETI Discussion Papers
10-E-007
"Trade Creation and Diversion Effects of Regional Trade Agreements on Commodity Trade" (URATA Shujiro and OKABE Misa)
09-E-037
"Impacts of FTAs in East Asia: CGE Simulation Analysis" (ANDO Mitsuyo)
09-E-028
"On the Use of FTAs by Japanese Firms: Further evidence" (TAKAHASHI Katsuhide and URATA Shujiro)
Workshop
Mar. 26, 2010
"Workshop on the Use of FTAs in East Asia"
Publication
2007
RIETI Discussion Papers
08-E-002
"On the Use of FTAs by Japanese Firms" (TAKAHASHI Katsuhide and URATA Shujiro)
07-E-053
"Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach" (ABE Kazutomo)
07-E-052
"The Impacts of Free Trade Agreements on Trade Flows: An Application of the Gravity Model Approach" (URATA Shujiro and OKABE Misa)
07-E-041
"Impacts of Japanese FTAs/EPAs: Post Evaluation from the Initial Data" (ANDO Mitsuyo)