Tamura Akihiko says Japan is now an “extrovert” in trade policy:

So what is Japan’s proposal and what makes it so special? The goal of CEPEA [Comprehensive Economic Partnership in East Asia] is to create an efficient, mature market-economy area encompassing the 10 member states of Asean, plus Japan, China and South Korea, as well as India, Australia and New Zealand. Or, put another way, the agreement would mirror the current membership of the EAS.

According to Japan’s blueprint, the agreement would, as its name suggests, be a “comprehensive” one both in terms of the sectors covered (trade in manufactured goods, services, investment, etc.) and – perhaps more noteworthy – in terms of how Japan defines its potential FTA/EPA partners. Notably, the decision to include India marks a new departure for Japan into relatively uncharted territory, as Japan looks to include countries that – even though they may not currently constitute a close fit for economic integration – nonetheless display strong signs of evolving into important economic partners in the future…

To uncover the true significance of the plan, we need to compare and contrast the sentiments expressed in CEPEA with the traditional stance that Japan has taken with regard to global economic activities. CEPEA is premised on a different paradigm from previous economic arrangements in the region. Up to now, regionalism in East Asia was driven by nations’ responses to perceived threats from other trade blocs such as the European Union and the North American Free Trade Agreement. As such, trade agreements have tended to be both reactive and exclusive. But CEPEA is different in that its goal is not just to set up a regional trade bloc. Instead, it’s my view that CEPEA is outward-looking in nature and this inherent characteristic will result in spurring other countries – or even regions – to pursue proactively economic integration with East Asia…

I would like to take particular note of this spirit embedded in CEPEA – one which is not discernable in any other bilateral FTA/EPAs engaged by Japan to date – and call it “extrovert regionalism.” This “extrovert” trajectory per se is particularly crucial for Japan – much more than individual trade agreements – because it is this spirit that could tremendously affect the dynamism of the Japanese economy.

Do read the full piece.