Why Is The Eu Interested In Forming A Free Trade Agreement With Japan

Shinzo Abe, Japanese Prime Minister “Japan s. Japan s. 19.090” of The Japan Times Nihon Keizai Shimbun, “Behind the Scenes of the JeepA Broad Agreement,” July 9, 2017. 11. Investments – The agreement aims to encourage investment between the EU and Japan. At the same time, the text explicitly reaffirms the right of each party to regulate in order to pursue legitimate political objectives, which are highlighted in a non-exhaustive list. The agreement does not address the protection of investments currently being negotiated between the two parties for a possible investment protection agreement. The EU has also presented Japan with its reformed proposal on the investment justice system. For the EU, it is clear that there can be no return to the old system of state dispute settlement (ISDR). Japan`s main interest in a trade agreement with Europe was to increase its exports from the automotive industry.

The EU currently applies a 10% tariff on Japanese cars. As part of the agreement, this reduction will be reduced to zero for another year. Although cars and automotive components account for about one-fifth of Japan`s exports to Europe, The share of Japanese automakers in the European market is only about 10%, which is significantly lower than that of the United States or Asia. The snapback clause will allow the EU to reintroduce import duties if Japan does not meet non-tariff requirements. Japan has a special category of Kei cars, the smallest engine with engine up to 660 cc. European car manufacturers have claimed that the Kei-Car category is a non-tariff barrier (Suzuki 2017, 884). This agreement, like other agreements recently concluded by the EU, goes only beyond trade issues. This is an important strengthening of our partnership with Japan, as reflected in the agreement. Read also: Trump`s Tariffs: When Does a Trade Dispute Become a Trade War? The agreement will not affect EU or Japanese legislation: it drastically reduces tariffs between the EU and Japan and paves the way for simpler and faster trade between the two, and thus an increase in volumes. The Strategic Partnership is committed to security cooperation on issues such as nuclear proliferation, regional security, international terrorism and organized crime, cybersecurity and energy and climate security. In the core negotiating economy, the EU has insisted that non-tariff barriers be removed, better access to agriculture and services markets and better access to Japanese government procurement. Although part of the treaty is not yet final, the parties on which the two sides have already agreed indicate a significant liberalisation of trade between the EU and Japan.

The agreement will liberalise 91% of EU exports to Japan on the day of ratification. After several staging periods, 99% of EU imports from Japan will be liberalised. Both sides agreed to eliminate tariffs on chemicals, plastics, cosmetics, textiles and clothing altogether. Similarly, they will eliminate tariffs on cars in the next seven years. Dreyer, I (2017) Japan`s TPP negotiator proposes the European Union`s Permanent Investment Tribunal. Borderlex, May 31 Available on www.borderlex.eu/japans-tpp-negotiator-slams-eu-style-permanent-investment-court/ access on 19 January 2018 This could become important in the near future, given that the EU is currently negotiating bilateral agreements with ten Asian countries (see Chart 3).21 Three of these countries, namely Singapore, Malaysia and Vietnam (as well as Japan), are also part of the initial TPP initiative. In addition, a trade agreement with ASEAN as a whole is negotiated as part of an agreement between the regions, but these negotiations have been halted.22 If the EU-Japan agreement had been delayed, which would very likely have been if the United States had not withdrawn from the TPP, the rules and standards of the trade pact would have played a much greater role in negotiating new treaties.

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