Examine EU–Japan trade figures in recent years. In every year since 1958 (with the exception of 1961) the main European countries have experienced deficits on merchandise trade with Japan. Comment on...

Examine EU–Japan trade figures in recent years. In every year since 1958 (with the exception of 1961) the main European countries have experienced deficits on merchandise trade with Japan. Comment on the extent and structure of the trade imbalance. Compare this imbalance with EU trade balances with other countries and regions. IThere is no doubt that China’s decision to join the WTO is particularly momentous. Opening its markets to foreign trade and investment will make China more prosperous, and committing China to world trade rules will foster and consolidate market-based reforms. WTO members stand to gain by better access to an economy of 1.3 billion consumers, which was growing at 8% in 2000. (WTO Annual Report, 2001) Analyse the above statement carefully. Explain how WTO membership will make China more prosperous. What does it mean to say that it will foster market-based reforms? Through what mechanisms do other countries gain? (See Case study 17.1 for further information.)n the light of your empirical findings, should Europe’s merchandise trade deficit with Japan be a cause for concern? (For relevant data, see World Trade Organisation, International Trade: Trends and statistics, or Eurostat trade figures.)