With 13.8 million jobs, the automotive industry is a major employer in the EU. Due to its strong economic link with many other industrial sectors, it has a significant multiplier effect in the economy. The automobile. European Commission, The agreement BETWEEN the EU and Japan You can also visit the website of the European Commission`s helpdesk – DG Trade, which gives an overview of the specific provisions of the agreement. The following discussion is based on the results of Felbermayr et al. (2019), whose qualitative predictions are comparable to other studies. The advantage of Felbermayr et al. (2019) is that the work went through the peer review process of an international specialized journal. The study notes that Europe is experiencing the largest increases in the agri-food sector, while in Japan, different manufacturing sectors will benefit the most, followed by services. In absolute numbers, Japan and the EU have very similar welfare gains, but relative to the baseline, Japan`s profits are three times larger than Europe`s. The study also finds that the structure of Japan`s regional value chains is changing, as companies source more from Eastern Europe, but less from ASEAN countries.
This implies, in turn, that some ASEAN countries could lose as a result of the agreement. The Economic Partnership Agreement between the EU and Japan will have a considerable impact on bilateral relations and the international liberal economic order. The general message is therefore that the EU is advancing pioneering agreements such as the one with Japan, but that it itself is becoming more inward-looking and more protectionist. Therefore, while the EU-Japan EPA certainly contributes to reaffirming the EU as an active player in the world of international trade, capable of concluding important trade agreements, other measures continue to undermine the EU`s credibility as a defender of the liberal international economic order. Many services are very data intensive. This is the case in financial services, telecommunications and logistics, where trade flows between the EU and Japan are very important. In July 2018, the EU and Japan concluded talks to recognise that the rules on the protection of the other`s personal data are equivalent. This mutual adequacy decision is important to ensure that the new EU data protection rules under the General Data Protection Regulation (GDPR) do not disrupt the Union`s trade in services with Japan.
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