The new age free trade agreement between Japan and Singapore is expected to have a significant impact on the global economy, as well as on the two countries involved. The agreement, which was signed in 2018 and came into effect in January 2019, aims to eliminate tariffs on over 90% of the goods traded between the two countries, as well as to improve investment flows, enhance intellectual property protection, and promote e-commerce.
One of the dynamic effects of this free trade agreement is likely to be an increase in trade between the two countries. According to the Singapore Ministry of Trade and Industry, the agreement is expected to lead to lower prices for consumers in both countries, as well as to increased trade and investment flows. This could be particularly beneficial for Japanese businesses, which have been facing challenges in recent years due to an aging population and declining domestic demand.
Another effect of the agreement could be an increase in foreign investment in both Japan and Singapore. By removing barriers to investment, the agreement is likely to encourage more businesses to set up operations in these countries, which could create new jobs and boost economic growth. This could also lead to increased competition in some sectors, which could ultimately benefit consumers.
The agreement may also have implications for the international trading system. By demonstrating the benefits of free trade, it could encourage other countries to pursue similar agreements, which could help to strengthen global trade and reduce barriers to economic growth. At the same time, it could also put pressure on other countries to lower their own trade barriers, in order to remain competitive in the global marketplace.
Overall, the new age free trade agreement between Japan and Singapore is likely to have a wide range of dynamic effects on the global economy. By promoting increased trade and investment between the two countries, it could help to boost economic growth and job creation, while also setting a positive example for other countries to follow. As such, the agreement is likely to be closely watched by policymakers around the world, as they seek to build a more open and dynamic global trading system.