Japan - Pacific States of America Comprehensive Economic Cooperation Agreement (JP - PSA CECA)

Origins of the Agreement.

• The concept of a CECA came when the governments of Japan and California (Now officially the Pacific States of America or PSA for short) explored the benefits of closer economic ties between both nations with a view towards an official comprehensive economic agreement to promote commerce and trading between the two nations.
• A Japan-PSA joint study group was established to research the extent and structure of the agreement with a focus towards liberalisation of trades, services and investment, as well as international trade for nations not included in the agreement.
• Government officials from both nations said that the agreement would further enhance bilateral ties between the two nations by improving upon the already growing flows of goods, investments, ideas and people

The Agreement.

• The announcement of the CECA states that both sides would do away with tariffs - taxes on imports from either nations, with 75% of tariffs and taxes on Japanese goods to the PSA and vice versa eliminated or substantially reduced.
• It is believed that the CECA would benefit many sectors of both economies, including but not limited to:

       - Automotives

       - Electricals and Electronics

       - Pharmaceuticals

       - Plastics 

• It is believed that the elimination or reduction of tariffs would help the consumers of both countries save money on imports from both sides, this also means that there are lower barriers of entry for Japanese or American companies looking to enter new markets through exports.

Immigration and foreign talent.

• Alongside enhanced trade relations and economic ties, the CECA also grants Japanese and American citizens and permanent residents guaranteed visa-free entry to and stay in each other's countries as:

      - Business visitors: Self-explanatory

      - Short-term service providers: People who are sent to either country to provide a service to the people over a short period of time. (180 days)

      - Professionals: People who are hired directly by a company from either nation.

      - Intra-corporate transferees (ICTs): Current employees of a multi-national corporation who are transferred from America to Japan and vice-versa. 

• The Pacific States of America is Japan's largest trading partner on the American continent as well as having the most overseas workforce in Japan, with the number still growing by 1% - 3% every year.

Criticism.

• Citizens of both nations have come out to protest the signing of the CECA, who believe that an influx of foreigners will take away their jobs and crowd out their societies, as well as perceived racism from foreign employees receiving preferential treatment from their workplace. The government of both nations are working to resolve these issues as well as implement fair employment practices and requirements in order to quell the troubles.