EU-Japan trade agreement into force

EU-Japan Economic Partnership Agreement (EPA) entered into force on 1 February 2019, creating an open trading area covering over 600 million people and almost one third of the world’s total GDP. European companies will now be able to export more easily to Japan.

Economic Partnership Agreement (EPA)

EPA is the biggest trade agreement concluded to date by the EU. 99% of the tariffs applied on EU exports to Japan, which currently amount to about €1 billion, will be removed.

Agreement will create new opportunities for EU agricultural exports, removing the existing Japanese tariffs on products such as cheeses or wines, while protecting EU intellectual property rights on Japanese markets. It will also open up services markets and significantly increase EU companies' access to Japan's procurement bids.

EPA is based on the highest standards of labour, safety, environment and consumer protection. It is also the first trade agreement to include a specific commitment to the Paris climate agreement.

Strategic Partnership Agreement (SPA)

The SPA is the first-ever framework agreement between the EU and Japan. It will strengthen cooperation and dialogue across a wide range of bilateral, regional and multilateral issues. It highlights the shared values and common principles that constitute the basis for close and lasting cooperation between the EU and Japan as strategic partners. These include democracy, the rule of law, human rights and fundamental freedoms.

Agreement will strengthen cooperation in fields such as international peace and security, cyber-crime, energy security, climate change mitigation, innovation and judicial and law enforcement cooperation.

RRA Reporter Georgiana Grosso: European Commission President Jean-Claude Juncker sees in the Economic Partnership Agreement a joint statement of EU and Japan in favor of free and fair trade - reference to protectionism promoted by US President Donald Trump. It is the biggest trade agreement concluded to date by the EU. Benefits are huge, considering that EPA eliminates € 1 billion in customs duties paid each year by European firms doing business with Japan. EPA is also extremely beneficial for European exports of agricultural products. For example, there are customs duties for Gouda or cheddar cheese, also for wines. Agreement allows EU to substantially increase exports of beef and veal, and provides protection in Japan for over 200 high-quality European agricultural products, the so-called geographically-friendly products.

Tariffs are also lifted for other products, such as cosmetics, chemicals, textiles and clothing, and e-commerce, international shipping and postal services will be liberalized. Agreement guarantees EU businesses access to public procurement in 54 large cities in Japan. As for the automotive industry, a transitional period of seven years is established before elimination of customs duties. This means that the 10% tariff currently imposed on all Japanese cars imported in EU will be canceled by 2027.

RRA Producer: According to Representation of the European Commission in Bucharest, 271 companies in Romania export to Japan, 66% of which are SMEs, and almost 22,000 jobs are supported by these exports in Japan.

Source:RRA, European Commission. Translated by Miruna Matei