The EU achieves a principle of agreement that will open Japan to its main agricultural exports
On 6th July, the EU and Japan reached an agreement in principle on the fundamental elements of a future Economic Partnership Treaty, which will be the most important bilateral trade agreement ever concluded by the European Union. Among other issues, this agreement will open the Japanese market to key agricultural exports of the Union, increasing opportunities in various sectors.
Also, for the first time, a specific commitment will be included with respect to the Paris agreement on climate change.
For the EU and its Member States, the future Economic Partnership Agreement with Japan will eliminate the vast majority of the rights paid by EU companies (amounting to € 1 billion each year)
This agreement sets the highest standards on workers’ rights, safety and protection of the environment and consumers, fully protects public services and contains a specific chapter on sustainable development. It is also based on and reinforces the strict rules of personal data protection, which both the EU and Japan have recently enshrined in their data protection legislation.
European Commission President Jean-Claude Juncker, European Council President Donald Tusk and Japanese Prime Minister Shinzo Abe announced the conclusion of the principle of agreement during the EU-Japan summit.
In the words of President Juncker: “Today we have reached an agreement in principle on an Economic Partnership Agreement, whose effects go far beyond our borders. Through this agreement, the EU and Japan uphold their shared values and commit themselves to the highest standards in the areas of workers’ rights, safety and protection of the environment or consumers. Through the preparation of mutual adjustment decisions we also firmly commit ourselves to upholding the fundamental right of data protection. Together, we are sending a clear message to the world that we are in favor of open and fair trade. As far as we are concerned, there is no protection in protectionism. Only by working together can we set ambitious standards on a global scale”.
For her part, Commissioner Cecilia Malmström added: “This agreement has enormous economic importance, but it is also a way of getting closer. We are demonstrating that the EU and Japan, which are democratic partners and open worldwide, believe in free trade. We believe in the creation of bridges and not walls. As Japan is the fourth largest economy in the world, with a high demand for European products, it is an agreement that offers great potential for Europe. We expect a strong export boost in many sectors of the EU economy“.
In the words of Commissioner for Agriculture and Rural Development Phil Hogan: “This is a win-win situation, but a great victory for rural Europe.”
Phil Hogan: “The EU-Japan Economic Partnership Agreement is the most important and far-reaching agreement ever held in agricultura”
A new reference for agricultural trade
As Hogan points out, under that agreement, “tariffs on wine exports will disappear from the first day of entry into force. For wine producers this means a saving of 134 million euros per year. Similarly, the Austrian Tiroler Speck, the German Münchener Bier, the Belgian Ardennes ham, the Polish vodka (Polska Wódka) as well as more than 200 other EU geographical indications will now enjoy the same level of protection in Japan as they have in Europe”.
The Economic Partnership Agreement with Japan will increase EU exports and create new opportunities for European companies, both large and small, as well as for their employees and consumers. The value of EU exports could increase by up to € 20 billion, which means more possibilities and jobs in many sectors of the EU, such as agriculture and food products, leather, clothing and Footwear, pharmaceuticals, medical devices and others.
With regard to EU agricultural exports, the agreement:
• eliminates duties on many cheeses, such as Gouda and Cheddar (currently 29.8%), as well as wine exports (currently an average of 15%);
• allow the EU to substantially increase its beef exports to Japan and, in the case of pigmeat, there will be duty-free trade for processed and almost duty-free meat for fresh meat;
• ensures the protection in Japan of more than 200 high quality European agricultural products, which are known as geographical indications.
• allow the EU to substantially increase its beef exports to Japan and, in the case of pigmeat, there will be duty-free trade for processed and almost duty-free meat for fresh meat;
• ensures the protection in Japan of more than 200 high quality European agricultural products, which are known as geographical indications.
Also, the agreement:
• opens up services markets, in particular financial services, e-commerce, telecommunications and transport;
• guarantees EU companies access to the large public procurement markets of Japan in 48 major cities, and eliminates barriers to hiring in the rail sector, which is of major economic importance at national level;
• protects sensitive EU economic sectors, such as the automotive sector, with periods of transition before market opening.The agreement will also strengthen Europe’s leadership in shaping globalization and world trade rules in line with our core values and will protect the interests and sensitivities of the EU. In doing so, it contributes to addressing some of the challenges identified in the Commission’s discussion paper on channeling globalization as part of the White Paper process.Next stepsThe agreement reached on 6th July covers, in principle, most aspects of the Economic Partnership Agreement. In some chapters it is still necessary to resolve technical details; In addition, there are chapters that have fallen outside the scope of the principle of agreement. For example, in the field of investment protection. The EU has put its reformed Investment Court System on the table and will contact all its partners, including Japan, to work towards the creation of a Multilateral Investment Court. Other areas where further work is needed include regulatory cooperation and general and institutional chapters.
Negotiators from both sides will continue to work to resolve all outstanding technical issues and finalize a final text of the agreement before the end of the year
The Commission will then proceed to the legal verification and translation of the agreement to all the official languages of the EU and submit it for approval by the EU Member States and the European Parliament.
Source: European Commission
YOU MIGHT ALSO LIKE:
