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Benz, S., &E. Yalcin (2015), “Productivity versus employment: quantifying the economic effects of an EU-Japan Free Trade Agreement,” The World Economy, No. 38, pp. 935-961. Indeed, political considerations have also been marked at EU level. Given that the mandate of the current Commission expires at the end of 2019, this also explains why the negotiations have progressed rapidly, an agreement has been reached and entry into force comes before the end of the Commission`s mandate. However, this short period for the ratification of an international agreement is not enough. As has already been said, the Commission was determined not to include in the agreement a provision on mixed competences that would require both the approval of the EU and the national parliaments and would therefore have taken longer. However, as always, there is room for further improvements. This is especially true in the areas of investment protection and data flows. There is no doubt that the agreement was reached under considerable political pressure due to the end of the TPP process by the US and the impasse between the EU and the US in TTIP. This agreement contains the main European principles of the right to regulation and high environmental and labour standards.

The Economic Partnership Agreement between the EU and Japan will enter into force on 1 February 2019, following the ratification of the agreement by the European Parliament and the Japanese Parliament. The following discussion is based on the results of Felbermayr et al. (2019), whose qualitative predictions are comparable to other studies. The advantage of Felbermayr et al. (2019) is that the work went through the peer review process of an international specialized journal. The study notes that Europe is experiencing the largest increases in the agri-food sector, while in Japan, different manufacturing sectors will benefit the most, followed by services. In absolute numbers, Japan and the EU have very similar welfare gains, but relative to the baseline, Japan`s profits are three times larger than Europe`s. The study also finds that the structure of Japan`s regional value chains is changing, as companies source more from Eastern Europe, but less from ASEAN countries. . . .