003 : Japan's Role in East Asia Regional Economic Integration Through Free Trade Agreements



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Unlike the European Union (EU), the form of regionalism in the East Asia region is still not visible and formed, where regionalism itself refers to the shared values, norms, identities, and aspirations of each country to create formal cooperation between regional governments to manage various problems between nations on a geographically limited basis. This is because the East Asia region comprises countries with different levels of economic development, cultural values, and political systems. This makes it difficult for these countries to come together and form a cohesive regional government.


There is also a lack of trust between countries in the region, making it difficult to reach agreements. A successful and recognized form of regionalism in East Asia is the Association of Southeast Asian Nations (ASEAN), which supports and encourages regionalization among countries in East Asia, such as ASEAN+3 and the East Asian Summit. Even so, integration among East Asian countries is still absent. This is due to differences in interests in geopolitics and geoeconomics, as well as unfavorable historical backgrounds between the three main countries in East Asia, namely China, Japan, and South Korea.

Source: Unsplash

As a result of the lack of an institutional framework that unites the East Asia region, regionalism is expressed as ‘open regionalism’. This is done by utilizing Southeast Asia and the Asia Pacific to form regional regionalism. The form of regionalism in the East Asia region, which is still in the form of a regional or multilateral agreement and still involves other countries outside the region, requires encouragement and initiation from key countries in East Asia, such as Japan, to develop and form a regional regionalism of its own.

In forming regional economic integration, Japan can be called the main actor who initiated the trend of trade agreements in the East Asia region. This was done through its efforts to form various FTAs with other post-AFC countries or economic communities. Starting from the idea and Japan’s participation in PAFTAD, APEC, and ARF, at that time, it was established with the assumption that the creation of FTAs as a basis for regional cooperation would promote investment and trade in the Asia Pacific. Japan’s efforts to create regional economic integration have been pivotal, laying the foundation for numerous free trade agreements in the East Asia region. This proactive approach has been widely praised, with Japan’s participation in PAFTAD, APEC, and ARF seen as a catalyst for greater investment and trade opportunities in the Asia Pacific. Until the Economic Partnership Agreement (EPA) bilaterally (ASEAN+1 FTAs) with various countries in Southeast Asia, such as Singapore (JSEPA), Malaysia (JMEPA), Thailand (JTEPA), Indonesia (JIEPA), and countries outside the region such as Switzerland and the US, as well as economic communities such as ASEAN and EU. This initiative inspired Korea to also participate in establishing FTAs with other international actors and communities to strengthen its economic foundations, with the exception of China because at that time it was still protectionist and closed to other countries.

Japan’s efforts to support regional integration did not stop at multilateral and bilateral FTAs, but expanded on a larger scale, starting with ASEAN+3 and RCEP. After Japan formed a working group to create a Comprehensive Economic Partnership (CEP), China opened up and agreed to the formation of the ASEAN-China Comprehensive Economic Cooperation in July 2003 which became one of the first openings for China to other countries’ economies. ASEAN+3 itself is considered the forerunner of the CJK (China, Japan, South Korea) as a regional representative of East Asia. This can accommodate regional cooperation in Southeast Asia and East Asia regions. This agreement provides a big boost not only in the form of a spillover effect for ASEAN which represents the Southeast Asian region. It also strengthens relations between CJK because this agreement is considered the forerunner of trilateral trade agreements. This can accelerate economic growth in East Asia. However, CJK in ASEAN+3 is the biggest obstacle to common goals. This is because the solidarity of the three countries in international trade has always declined even faster after the AFC hit. RCEP is also one of the major agreements for East Asia countries, except for China. This agreement is East Asia centered and formed through the EAFTA and CEPEA proposals initiated by Japan.

Not only through multilateral agreements, Japan has also initiated FTAs with East Asia countries bilaterally. This is in support of its mission of economic integration in the region. With Korea itself, Japan initiated a Joint Study Group filled with academics, government actors, and business people from the two countries to form the Japan-Republic of Korea (ROK) Economic Partnership Agreement (JKFTA) in 2002. Through this discussion, it was concluded that JKFTA would bring substantial benefits to both countries. It would also become a benchmark for peace and prosperity in East Asia. This agreement must be built on the principles of comprehensive, substantial liberalization, and mutual benefit, and in line with WTO regulations (MOFA, 2003). The JKFTA was terminated in 2004 and reopened in 2006 because it was considered politically to improve Japan-Korea relations which are very important for East Asian integration, as well as to encourage rapid and substantial economic integration through lower trade barriers (Elliott, 2016). This will have a positive effect on both countries’ economies in terms of efficiency, industrial expansion, streamlining, and resource allocation. In addition, it will increase exports to both countries.

To conclude, we can see that Japan has undertaken a cooperation process aimed at the integration of the East Asian region. This is done through its participation in various efforts to create FTAs. Japan’s efforts are part of a larger trend among East Asian countries to foster regional economic integration, with the ultimate goal of creating a more cohesive regional economic bloc. Japan’s involvement in these efforts demonstrates its commitment to this process and its desire to be a leader in the region. However, in the 2017–2021 period, there have been no newly formed FTAs in the East Asia region that Japan has offered. However, Japan through its participation in various FTA discussion meetings within this timeframe has shown Japan’s seriousness in continuing efforts to integrate the region’s economy.