Japan-ASEAN trade will have bright spots amid slowdown

Subject

The Japan-ASEAN trade relationship.

Significance

The Japan-ASEAN trade relationship is among the most important in the world. Japan is the only country that has concluded separate bilateral economic partnership agreements with all ten ASEAN member states and the two sides have also had a Comprehensive Economic Partnership agreement (AJCEP) since 2008. However, trade volumes have recently begun to fall as Japan and its South-east Asian counterparts face new challenges.

Impacts

• Expanding trade with Japan could help Myanmar reduce its economic dependence on China.
• Fears of difficulties over commerce with the United States will prompt Japan and ASEAN states to deepen their trade relationships.
• Exports to Japan from the less-developed ASEAN states will increase as manufacturing relocates there from China.