The Economic Partnership Agreement between the European Union and Japan is a free trade agreement that was implemented on February 1, 2019. The main goal of this agreement is to increase trade and investment between Japan and the EU. However, this agreement also has implications for other countries, including the United Kingdom.

The theory of Economic Partnership Agreements (EPAs) explains that countries that are trading partners may enter into free trade agreements to create a mutually beneficial economic relationship. In the case of the EU-Japan EPA, both parties identified key sectors for liberalization, such as agricultural products, automobiles, and medical devices. The agreement is designed to remove tariffs and other barriers to trade in these sectors, which can lead to increased economic activity and job creation.

The United Kingdom, which is currently in the process of leaving the EU, is looking for a free trade agreement with the EU in order to maintain access to its markets. The UK is the EU`s second-largest economy, and its departure will have significant implications for both parties. A free trade agreement would help to mitigate some of these effects.

However, negotiations for a UK-EU free trade agreement have been complicated by several factors. One of these is the issue of regulatory alignment, which refers to the extent to which the UK would be required to adhere to EU regulations in order to maintain access to its markets. The UK government has expressed a desire for regulatory independence, while the EU is pushing for alignment in key areas such as environmental protection and workers` rights.

Another complicating factor is the issue of Northern Ireland, which shares a land border with the Republic of Ireland. The EU has insisted on a “backstop” arrangement to prevent the reintroduction of a physical border between the two countries, but this has been a sticking point in negotiations.

Despite these challenges, the theory of EPAs suggests that a free trade agreement between the UK and the EU would be mutually beneficial. Both parties have much to gain from increased trade and investment, and a successful agreement could help to mitigate the negative effects of the UK`s departure from the EU. However, the details of such an agreement will be complex and require careful negotiation. Ultimately, the success of any free trade agreement will depend on the willingness of both parties to compromise and find mutually beneficial solutions.