Japan and the EU have been two of the more beleaguered economies of the past decades, but a new FTA in negotiation could change that. Talks between the two economic powers heated up in 2013, and should conclude by 2018, according to analysts.
Japan is also at the center of the Trans Pacific Partnership (TPP) negotiations, which continues as separate trade talks. Japan announced it was joining the TPP talks in March 2013, putting pressure on other APAC countries not to be left out.
Peter A. Petri, a visiting fellow at the Peterson Institute for International Economics, estimates the TPP would allow Japan to jump-start its stagnant manufacturing sector and increase exports by 14 percent. It would also bring billions in growth to other TPP countries (including the U.S.) that do not have FTAs with Japan.