Dynamic Effects of the “New-Age” Free Trade Agreement between Japan and Singapore

doi:10.1017/CBO9781139059923.009

9 - Dynamic Effects of the “New-Age” Free Trade Agreement between Japan and Singapore

Published online by Cambridge University Press: 05 June 2012

Thomas W. Hertel ,

Terrie L. Walmsley and

Ken Itakura

Edited by

Elena Ianchovichina and

Terrie L. Walmsley

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Thomas W. Hertel: Affiliation:
Purdue University, USA
Terrie L. Walmsley: Affiliation:
Purdue University, USA, and University of Melbourne, Australia, Australia
Ken Itakura: Affiliation:
Purdue University, USA
Elena Ianchovichina: Affiliation:
The World Bank, Washington, DC
Terrie L. Walmsley: Affiliation:
Purdue University, Indiana

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Summary

Introduction

In the 1990s, there was a flood of regional trade agreements. By 2001, more than 130 such agreements were in place (WTO2000). The European Union, the North America Free Trade Agreement (NAFTA), and MERCOSUR have been particularly effective at promoting intraregional trade. This success has led other countries to explore options for such regional agreements, and in December 1999, Japan and Singapore established a Joint Study Group to examine the feasibility and desirability of establishing an FTA. After a favorable report from the Study Group, negotiations commenced in early 2001 (Joint Study Group 2000a), and the Japan-Singapore FTA came into effect in November 2002.

The main elements of the Japan-Singapore FTA involve bilateral liberalization and facilitation of trade through reduction of tariff and nontariff barriers, as well as the mutual recognition of national standards, streamlining of customs procedures, facilitation of increased services trade, and the establishment of an exemplary framework for foreign investment. This “new-age” FTA also envisioned increased collaboration on intellectual property, education and training, media and broadcasting, and tourism. This trade agreement is particularly significant, because it is viewed by many as providing a possible template for future FTAs in the region, for example the FTA between Japan and Korea (KIEP 2000).

Type: Chapter
Information: Dynamic Modeling and Applications for Global Economic Analysis , pp. 235 - 268

DOI: https://doi.org/10.1017/CBO9781139059923.009 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2012

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