The European Union (EU) and Japan reached a free trade agreement on the major elements of the future Economic Partnership, reported the press service of the European Commission (EC).
This is by far the most important free trade deal by the EU, as it is provided and a specific commitment to the implementation of the agreement on the climate of Paris.
Commercial transaction will result in removal of most of the duties paid by EU companies which perform import in Japan. The total amount is estimated at about 1 billion per year.
The agreement offers to drop tariffs on imports of some European cheeses in Japan, for example gouda and cheddar, for which currently EU exporters pay 29.8 percent, and the wine for which the average duty is 15%.
The deal will also allow a significant increase in the export of beef from the EU to Japan. Trade in pork will be almost tax-free. Dropped tariffs for most industrial products, for example in sectors where the EU is more competitive, as beauty products, chemical industry and others. Other duties will be significantly reduced, for example, imports of footwear, keto is projected to fall from 30% to 21% and gradually disappear over a period of 10 years. There will also be opening up of the services market in Japan, especially in financial services, e-commerce, telecommunications and transport.
The agreement protects sensitive economic sectors of the EU, such as automotive. In this case, it will introduce a transitional period before full opening of markets.
The Communication from the Commission noted that some heads will continue negotiations on the technical details. In other sections negotiations have not begun, for example, investment protection, and now they are outside the scope of the agreement in principle.
European Commission President Jean-Claude Juncker said that with today’s agreement in principle EU and Japan sent a strong message that the world must stick to open trade. “There is no protectionism as feared. Only by working together we can set our ambitious goals and global standards. This will be the message that the EU and Japan will head together to the G20 summit which begins tomorrow, “he said.
European Commissioner for Trade Affairs Cecilia Malmström added that the agreement is of great economic importance and unites both sides. “Japan is the fourth largest economy in the world and a big appetite for European goods, so the deal is with great potential for Europe. We expect a strong boost to exports in many sectors of the EU economy, “she said.
European Commissioner for Agricultural Affairs Phil Hogan estimated that only wine agreement will save about 134 mln euros annually from custom duties. Meanwhile wines with a protected geographical indication will benefit from the same level of protection in Japan.
