Second-Tier Great Power in Power Transition: Japan’s Trade Policy in East Asia

26 September 2024, Version 1
This content is an early or alternative research output and has not been peer-reviewed at the time of posting.

Abstract

Since the mid-2000s, Japan has tried to draw a regionwide trade agreement in East Asia. However, from the initial proposal of the CEPEA in 2006, to the twist of the TPP in 2017, and further to the less-than-satisfied conclusion of the RCEP in 2019, Japan’s regional trade policy was far from consistent. I argue that power transition in trade has complicated the environment of Japan’s policymaking. As a second-tier great power, Japan faced the structural uncertainties arising from the rise of China, the decline of its own influences, and the US’s increasingly protectionist trade policy. To cope with these uncertainties, Japan has adopted a status quo-oriented strategy to preserve economic interests, maintain its privileged international status, and uphold the open trade order. These conflicting policy goals not only explain the changing priorities of Japan’s regional trade policy, but shed light on its surprising rapprochement with China under the Abe government.

Keywords

Japan
Free Trade Agreement
Power Transition
China
US
Second-Tier Powers
East Asia

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