Development Prospects for EU Trade in Agri-food Products with Japan and Vietnam
Purpose: This study aims to the development prospects for trade in agri-food products of EU countries under regional trade agreements with Japan and Vietnam. Design/Methodology/Approach: The empirical part of the research uses secondary materials from international, public databases, including UNCTAD, WITS. The ex-ante analysis of foreign trade in agri-food products of EU countries with Japan and Vietnam was performed using the SMART partial equilibrium model. Findings: Based on the conducted research, it can be concluded that the EU agri-food sector shows a stronger competitive position on the market Japan and Vietnam in case of products with a higher processing degree rather than agricultural raw materials. Implementation of selected preferential trade agreements can cause trade creation and trade diversion effects in bilateral relations between the EU and Japan and Vietnam of the agreements at the expense of limiting intra-EU trade. Practical Implications: The results can then be used as a basis for formulating conclusions on the possible transformation of the geographical distribution and product mix of the EU agri-food trade in the context of increasing regionalism. Originality/Value: The potential consequences of the implementation of the EU-Japan and EU-Vietnam trade agreements for agri-food products will be identified, assuming a reduction of tariff and non-tariff barriers.