Japan’s Prime Minister Shinzo Abe with European Council President Donald Tusk (L) and EC President Jean-Claude Juncker.

EU and Japan sign free trade agreement

EUROPEAN UNION
Tuesday, July 17, 2018, 22:40 (GMT + 9)

The European Union and Japan have signed a trade agreement that reiterates both partners’ commitment to uphold the highest standards in areas such as labour, safety, environmental or consumer protection, opening fair and rules-based trade.

The deal, signed by Presidents of the European Commission Jean-Claude Juncker and of the European Council Donald Tusk, and Japanese Prime Minister Shinzo Abe at the EU-Japan summit in Tokyo, is the largest trade agreement negotiated so far by the EU and will create an open trade zone covering over 600 million people.

“What we are saying is that a trade agreement is not a zero sum game, but a win-win for the involved parties. This agreement will bring tangible benefits to both sides and at the same time safeguard each other's sensitivities," pointed out Juncker.

The Economic Partnership Agreement will strengthen cooperation between Europe and Japan in a range of areas, reaffirm their shared commitment to sustainable development, and include for the first time a specific commitment to the Paris climate agreement.

In this regard, Cecilia Malmström, Commissioner for Trade, said the document represents a strong signal to the world that two of its biggest economies still believe in open trade, opposing both unilateralism and protectionism.

In her view, by removing billions of euros of duties, simplifying customs procedures and tackling behind-the-border barriers to trade, it will offer opportunities for companies on both sides to boost their exports and expand their business.

The agreement will remove the vast majority of the EUR 1 billion of duties paid annually by EU companies exporting to Japan, and has led to the removal of a number of long-standing regulatory barriers, for example on cars.

It will also open up the Japanese market of 127 million consumers to key EU agricultural exports and will increase EU export opportunities in a range of other sectors.

As part of the deal, Japan will eliminate tariffs on 94 per cent of all imports from the EU on an item basis, including 82 per cent on farm and fishery products. At the same time, the EU will cut tariffs on 99 per cent of imports from Japan.

The agreement is now awaiting ratification by the European Parliament and the Japanese Diet following which it could enter into force in 2019.

At the same time, negotiations with Japan continue on investment protection standards and investment protection dispute resolution. The firm commitment on both sides is to reach convergence in the investment protection negotiations as soon as possible, in light of their shared commitment to a stable and secure investment environment in Europe and Japan.


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