Kondo ppt parallel3 4

Japan’s Role in Pan-Asian Economic Integration: 

Japan’s Role in Pan-Asian Economic Integration 15 January 2007 International Christian University Masanori Kondo

Outline: 

Outline Japan-ASEAN economic relationship Japan-India economics relationship CEPEA (Comprehensive Economic Partnership in East Asia)

Japan-ASEAN Economic Relationship: 

Japan-ASEAN Economic Relationship

（1）　Trade: 

（1）　Trade Japan is the largest trade partner for ASEAN. Japan’s trade surplus with most ASEAN countries. Not only natural resources but also manufacturing commodities are exported from ASEAN to Japan. Recently China-ASEAN trade is increasing more rapidly than Japan-ASEAN trade.

（2）　Investment: 

（2）　Investment Japan’s massive FDI in manufacturing in Thailand, Malaysia, and Indonesia since mid-1980s. ASEAN as a global export base for many Japanese manufacturing firms. Enhanced intra-ASEAN trade. Recent increase in Japanese FDI into Vietnam.

（3）　Japan’s EPAs with ASEAN: 

（3）　Japan’s EPAs with ASEAN Japan-Singapore EPA entered into force in 2002. Japan-Malaysia EPA entered into force in 2005. Japan-Philippines and Japan-Thailand EPAs to enter into force soon. Indonesia and Vietnam will follow. Japan-ASEAN EPA (region-wide agreement) under negotiation.

Japan-IndiaEconomic Relationship: 

Japan-India Economic Relationship

（1）　Trade: 

（1）　Trade Until recently, bilateral trade between Japan and India did not expand. Jewelry, marine products, and iron ores are three major items that India exports to Japan. Unlike ASEAN or China, India is not an export base for Japanese manufacturing companies.

（2）　Investment: 

（2）　Investment Japanese investment in India is generally profitable. FDI is concentrated in the automobile sector. Many Japanese are cautious to invest in India. Numerous Japanese business delegations only to complain about India’s infrastructure. Koreans are more aggressive and successful.

（3）　India-Japan EPA (CEPA): 

（3）　India-Japan EPA (CEPA) Joint Study Group submitted a report. Indian Prime Minister visited Japan and negotiation has started. Japan expects India to lower the tariffs on manufacturing goods. India wants to send more professionals to Japan.

3. CEPEA(Comprehensive Economic Partnership in East Asia): 

3. CEPEA (Comprehensive Economic Partnership in East Asia)

（1）　Background: 

（1）　Background Japanese economy still accounts for over half of GDP in Asia. Japan’s concern about the increasing economic power of China. ASEAN is engaged in five separate FTAs. Unlike ASEAN, Japan does not have a good progress with China or Korea for EPAs. India, Australia, and New Zealand are keen to benefit from economic growth in East Asia. Japan and Australia stated a joint study for EPA.

（2）　What is CEPEA?: 

（2）　What is CEPEA? Comprehensive Economic Partnership in East Asia 16 countries - ASEAN10, Japan, China, Korea, India, Australia, and New Zealand Omnibus FTA for the region of 3 billion people Proposed by Japanese Minister Nikai in 2006. Japan will fund $100 million over a 10-year period.

（３）　Objectives: 

（３）　Objectives Combining the ASEAN’s five FTAs into single FTA to benefit Asian business communities. Not prescriptive but consultative in approach. ASEAN in the driving seat, while Japan provides theoretical underpinnings for the CEPEA proposal. Open to other economic regions in the world.

（4）　Why CEPEA is important?: 

（4）　Why CEPEA is important? Develop regional production network in Asia Establish free market economy with fair rules Make ASEAN to be a driving force for Asian economic integration Integrate another future superpower India into Asian economic integration

（5）　ERIA (Economic Research Institute for ASEAN and East Asia): 

（5）　ERIA (Economic Research Institute for ASEAN and East Asia) Japan’s initiative to set up an Asian equivalent of “OECD” Conduct research on regional economic integration Make intellectual input to ASEAN secretariat in Jakarta