A study of one bilateral free trade agreement of country A and country Essay

A study of one bilateral free trade agreement of country A and country B 05091 - Essay Example Japan is an important country where the foreign direct investment takes place and also facilitates the Mexican exports. The investment that flows out of Japan to Mexico and the technology transfer that takes place within the economy is very important for the growth of the economy. It brings in competitiveness within the economy and also creates employment opportunities (Kawai, 2005). The trade relations within the two nations lead to a diversification of the export market. Strengthening of the economic relations within the nations will enhance the positions of Japan and Mexico in the international markets (Ravenhill, 2003). However, the potential economic relations between the nations have not been realized completely. The main purpose of the free trade partnership agreement was to promote liberalization of the trade as well as investments within the economy and also facilitate the movement of individuals between Japan and Mexico for trade purposes (Ravenhill, 2003). The agreement aims to set up a comprehensive economic partnership involving a competition policy, development of the business environment and bilateral cooperation in the field of vocational education and training and also provides support to the small and the medium enterprises within the economy (Yoshimatsu, 2005). It is expected that through this agreement, Japan will gain access to Mexican marke t which is growing at a fast pace. The agreement will also enable the entry of firms into the north South American markets through Mexico and the Japanese companies will gain equal treatment along with the companies of Canada, US and European Union in the fields of Customs duties, investment and Government procurement (Manger, 2005). According to the agreement, the custom duties will be eliminated or reduced on agricultural as well industrial products. Further, both the countries signing the agreement should cooperate in the field of anticompetitive activities. However, the agreement has left the