Analyses on Japan’s FTA Strategy

　　Abstract: From the end of World War II, Japan was understood to have relied heavily on foreign trade to rebuild its nationindeed, some termed this approach as “nation building by trade” (maoyi liguo). This policy, founded on a framework of multilateral trading system, has brought Japan enormous economic benefits. However, in the late 1990s, Japan gradually shifted its gears to focus more on FTAs and EPAs. Japan’s changing approach toward foreign trade has since adopted a systematic shape; a new, coherent strategy revolving around building a network of FTAs was born. The new approach has been a result of Japan’s political and economic environments, internal as much as external. However, all things considered, Japan’s new FTA strategy is but a mere extension of its previous “nationbuilding by state” strategy set in the new era. As in all strategies, this new approach has its shortcomings. To ensure greater success, Japan still has to overcome three major obstacles:to thread a fine balance in its openingup policy versus its protectionist tendency; to resolve its bureaucratic redtapes and infighting that beset trade treaty negotiations; the growing importance of China as a trading partner warrants greater attention to settling the JapanChina FTA.