Delegation of the European Union to Japan:eeas.europa.eu/delegations/japan/56981/eu-japon-economic-partnership-agreement-epa_en Without giving further details, the Joint Committee announced in January that Brussels and Tokyo would "intensify work on connectivity, security and digitalisation". Add "effective multilateralism", "climate and environment" and "security" and there will be a full list of the aforementioned priority areas on which Brussels and Japan (hopefully) will focus. Promoting the connectivity approach is clearly the priority of EU-Japan cooperation initiatives on the ground. In September 2019, Brussels and Tokyo adopted the EU-Japan Partnership on Connectivity and Sustainable Quality Infrastructure. The eu-Japan infrastructure deal will be secured by a €60 billion EU guarantee fund to attract more investment from development banks and private investors in Brussels. This paper provides a quantitative analysis of the new EU-Japan Economic Partnership Agreement (EPA), the largest bilateral agreement concluded to date between the EU and Japan. It uses a generalized variant of the Eaton Kortum (2002) model, which includes several sectors, input-output connections, trade in services, and non-tariff barriers (NTBs). It uses the results of an ex-post economic analysis of an existing related free trade agreement, the one between the EU and Korea, to approximate the expected cost reductions of NTBs. This approach has long-term welfare effects for Japan of around €18 billion. USD per year (0.31% of GDP) and around USD 15 billion (0.10%) for the EU.
On average, the agreement does not seem to harm third countries. 14% of the EPA`s welfare gains come from tariffs, the remaining 86% comes from NTB reform and the services sector accounts for more than half. Value added in the AGRI-food sector increases the most in the EU, while in Japan, manufacturing and services increase. On July 17, 2018, the European Union and Japan signed an Economic Partnership Agreement (EPA), the largest trade agreement ever negotiated by the EU and which will create an open trade zone for more than 600 million people. . . .