IMPACTS OF JAPANESE FTAs/EPAs: PRELIMINARY POST EVALUATION

This paper attempts to provide post evaluation of Japanese EPAs and draw policy implications for future FTAs/EPAs. Our gravity model estimation as well as detailed analysis on trade and actual tariff reduction by EPAs demonstrates that the Japan-Singapore EPA has almost no direct impact on trade since actual reduction of tariffs by the EPA is quite limited. On the other hand, our empirical investigation confirms a certain degree of positive impact of the Japan-Mexico EPA on trade, particularly on the export side, and investment. Several important outcomes of the EPA beyond tariff removal are also revealed.