The domestic economy can be boosted by 15 trillion yen thanks to FTA

TOKYO, Mar 21 (04:13 PM PKT)(XINHUA/APP): The Japanese government said on Friday that the domestic economy could be boosted by 15 trillion yen (140 billion U.S. dollars) thanks to a free trade deal (FTA) signed last year by 15 Asia-Pacific countries.

According to relevant Japanese ministries, based on the country’s real gross domestic product in fiscal 2019, the expected economic effect of the Regional Comprehensive Economic Partnership (RCEP), which will cover a third of global trade and population, could correspond to about a 2.7 percent GDP increase. In the country’s first publicized estimate on the impact of the trade deal, the government also expected some 570,000 jobs to be created.

The trade deal was signed last November and will see tariffs eliminated on 91 percent of goods, with standardized rules pertaining to investment, intellectual property and e-commerce. The RCEP groups the 10 members of the Association of Southeast Asian Nations (ASEAN), Japan, China, South Korea, Australia, and New Zealand. ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.