Analysis of the economic effects of China-
Japan
tariff concessions on Mechanical and electrical products under RCEP framework Based on the SMART model
TON DUC THANG University
Analysis of the economic effects of China-
Japan
tariff concessions on Mechanical and electrical products under RCEP framework Based on the SMART model
Author:
Sun, Yanlin
;
Zhang, Jiajia
Subjects:
china-
japan
;
economic effects
;
mechanical and electrical products
;
rcep
;
samrt model
;
tariff concessions
;
Tariffs
Is Part Of:
SHS Web of Conferences, 2023, Vol.169, p.01014
Description:
Based on the partial equilibrium model, this paper uses the SMART model to simulate the economic effects of different tariff concessions between China and
Japan
on both Chinese and Japanese Mechanical and electrical products under the RCEP framework. The results of the study show that China obtains larger trade effects relative to
Japan
after the RCEP comes into effect, because 91.3% of the Mechanical and electrical products exported from
Japan
to China have been liberalized before the RCEP comes into effect, and the Mechanical and electrical products exported from
Japan
to China are fully liberalized after the RCEP comes into effect, while China sets a transition period for tariff concessions and maintains a benchmark tariff for Mechanical and electrical products exported from
Japan
. China has not fully liberalized its exports of E&E products to China even after the transition period of tariff concessions. Therefore, if China fully liberalizes its E&E products to
Japan
based on reciprocal tariffs, China will gain more trade creation effect than trade diversion effect. Although a trade agreement would lower the tariff revenue of both countries, the economic welfare effect would be further enhanced. Finally, this paper proposes relevant policies and recommendations.
Publisher:
Les Ulis: EDP Sciences
Language:
English
Identifier:
ISSN: 2416-5182
EISSN: 2261-2424
DOI: 10.1051/shsconf/202316901014
Source:
EDP Open
ROAD: Directory of Open Access Scholarly Resources
ProQuest Central
DOAJ Directory of Open Access Journals