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Measuring the Potential Economic Impact of a Japan–US Free Trade Agreement: Can It Enable the US to Eliminate Its Trade Deficit in Goods with Japan?


 
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1. Title Title of document Measuring the Potential Economic Impact of a Japan–US Free Trade Agreement: Can It Enable the US to Eliminate Its Trade Deficit in Goods with Japan?
 
2. Creator Author's name, affiliation, country Shun Hasegawa; Hokkaido University; Japan
 
2. Creator Author's name, affiliation, country Hirokazu Akahori; Akita Prefectural University; Japan
 
2. Creator Author's name, affiliation, country Daisuke Sawauchi; Hokkaido University; Japan
 
2. Creator Author's name, affiliation, country Yasutaka Yamamoto; Hokkaido University; Japan
 
3. Subject Discipline(s) Agricultural economics
 
3. Subject Keyword(s) Free Trade Agreement, Trade Deficit in Goods, GTAP Model
 
4. Description Abstract Japan and the US are two major global trading partners that have at times been at odds regarding each other’s international trade policies. In particular, the ongoing US trade deficit in goods with Japan has been one of the primary disputes between Japan and the US. However, the recent withdrawal of the US from the Trans-Pacific Partnership (TPP) sent a clear signal that the US would take a new approach to international trade issues and has potentially paved the way for a bilateral free trade agreement (FTA) with the remaining TPP countries, including Japan. This paper contributes to the debate on the potential economic impact of a Japan–US FTA (JUFTA) by evaluating whether it could enable the US to eliminate its trade deficit in goods with Japan. To do this, we measure the potential impact of a JUFTA using a dynamic Global Trade Analysis Project (GTAP) model. We find that a JUFTA is unlikely to enable the US to eliminate its trade deficit in goods with Japan, although the deficit will certainly decrease as a result.
 
5. Publisher Organizing agency, location
 
6. Contributor Sponsor(s) Japan Society for the Promotion of Science
 
7. Date (YYYY-MM-DD) 05-06-2022
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type CGE
 
9. Format File format PDF
 
10. Identifier Uniform Resource Identifier https://www.jital.org/index.php/jital/article/view/261
 
11. Source Title; vol., no. (year) Journal of International Trade, Logistics and Law; Volume 8, Issue 1 (2022): June
 
12. Language English=en en
 
13. Relation Supp. Files Copyright Transfer Form (1MB)
Cover Letter (28KB)
Authors Bibliography (194KB)
Certificate of Proofreading (147KB)
 
14. Coverage Geo-spatial location, chronological period, research sample (gender, age, etc.)
 
15. Rights Copyright and permissions Copyright (c) 2022 Journal of International Trade, Logistics and Law