The EU-Japan Economic Partnership Agreement

London (ots/PRNewswire) -

New LSE report on how the new deal addresses the need to diversify
Europe's overseas investments

A new white paper published by the London School of Economics
looks at how trade agreements improve return on investments. Focusing
on the new EU-Japan Economic Partnership Agreement (EPA), the white
paper shows how cuts in trade costs increase profit margins for
European investors in Japan and can be used to conquer larger market
shares.

The EU-Japan EPA, signed today, is on track for ratification and
expected to swiftly enter into force. Covering nearly one-third of
global GDP, it is one of the largest trade agreements ever completed.

In contrast to other Asian economies, Japan is already open for
foreign investors; however, the LSE white paper looks at how the
EU-Japan EPA cuts nearly all tariffs and creates a Euro-Pacific
marketplace with transparent rules and common technical standards.

The EU agreement with Japan is well-timed. In a time of global
market uncertainties, structural reform under Abenomics delivered the
longest stretch of growth in nearly three decades and record profits
in the corporate sector. The size of private demand in Japan is USD
4.5 trillion (EUR 3.6 trillion), making it the largest consumer
market in Asia.

According to EU statistics, the return on investment in Japan is
already twice what European businesses receive from overseas
investments on average. Japanese research and development (R&D) also
has major commercial synergies with the EU: in artificial
intelligence, 5G and software where Japan and its "society 5.0"
strategy is ahead of its Asian neighbours and in life sciences, where
the market potential of Japan's ageing society and M&A is
outperforming the rest of Asia combined.

The author of the report, Hosuk Lee-Makiyama says: "If done right,
trade agreements could even turn unprofitable markets into profit."

The white paper also notes the lack of diversification in Europe's
engagement in Asia; this disproportionately exposes European
investors to the macro-political and regulatory risks affecting the
rest of Asia. Currently, European firms underinvest in Japan compared
to their US competitors.

Lee-Makiyama says: "To compete globally, European and British
businesses must also steer their investments towards high-end markets
- and not just emerging markets where they compete on price and
yesteryear technology."

For the full report, please visit LSE Consulting reports page here
(http://www.lse.ac.uk/business-and-consultancy/consulting/consulting-
reports/at-the-nexus-of-trade-and-investment).

Notes to Editors

Credit:

Publisher of the report: LSE Consulting

This report was funded by the Government of Japan. The content of
the report, including the opinions and conclusions, is independent of
the Government of Japan and is that of the author alone.

About LSE Consulting:

This research was commissioned via LSE Consulting, which was set
up by the London School of Economics and Political Science to enable
and facilitate the application of its academic expertise and
intellectual resources.

This report was funded by the Government of Japan. The content of
the report, including the opinions and conclusions, is independent of
the Government of Japan and is that of the author alone.

LSE has an outstanding reputation in academia and research. The
knowledge, skills and experience of the academic specialists have
proved to be a valuable resource for clients all over the world,
including governments, corporations and individuals. LSE Consulting
adopts a collaborative approach and makes sure to match the needs of
clients with the appropriate academic specialists. The access to
LSE's unique range of intellectual resources ensures research and
support that is based on robust methodology and expert insight.

About Hosuk Lee-Makiyama:

Hosuk Lee-Makiyama is a leading author on trade diplomacy and
EU-Asia relations. He is regularly consulted by governments and
international organisations on a range of issues, from trade
negotiations to economic reforms, as was one of the lead authors of
the Trade Sustainability Impact Assessment of the Free Trade
Agreement between the European Union and Japan Final Report,
commissioned by the European Commission in 2016.

He appears regularly in European, Chinese and US media, and is
noted for his involvement in WTO and major free trade agreements.

ots Originaltext: LSE Consulting
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