With the number of member countries now topping 150, trade negotiations under the World Trade Organization will take more time to conclude. This has triggered a rush by many countries to conclude regional or bilateral trade liberalization agreements.
Japan has long placed priority on using the multilateral approach, and the nondiscriminatory principles promulgated by the WTO and its predecessor, the General Agreement on Tariffs and Trade. As a result, it has been lagging behind other industrialized nations in pursuing bilateral or regional agreements. Japan now needs a strategy as it tries to catch up with the global trend.
Japan signed an economic partnership agreement with Mexico, its second such accord, on Sept. 17 following nearly two years of negotiations that started in October 2002. The pact, which takes effect on April 1, 2005, is of course expected to boost trade and investment between the two countries. But the agreement is significant for another reason: It will indirectly give Japan greater access to the regional blocs to which Mexico belongs, especially the North American Free Trade Agreement.