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Japan-EU Economic Partnership Agreement (EPA) Under Negotiation

News Releases

12/04/2015
Fourteenth Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)
11/09/2015
Thirteenth Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)
09/18/2015
Twelfth Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)
07/10/2015
Eleventh Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)
05/30/2015
The 23rd Japan-EU Summit Meeting
04/28/2015
Tenth Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)
02/27/2015
Ninth Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)
12/12/2014
Eighth Round of Negotiations on the Japan EU Economic Partnership Agreement (EPA)

Basic Concept of Japan-EU・EPA

Promote Trade and Investment of Japan-EU

The EU is an important trade partner which accounts for 10% of our total import and export value (the third largest value behind China and the US). Japan's investment in the EU is the second-largest investment destination behind the US, and investments from the EU rank first in Japan.
Japan and the EU have established a close partnership regarding trade and investment. Conclusion of the Japan-EU EPA will improve the business environment for companies from both regions and further expand trade and investment.

Contribute to Boosting Economic Growth of the Region・World Economy

In the global economy, Japan and the EU represent an important economic partnership which accounts for approximately 10% of the world's population, approximately 30%(20% except for within the EU's ) of global trade and investment and 30% of global GDP. Geographically, Japan is the hub of the Asia-Pacific economic bloc, while the EU is the hub of the Atlantic economic bloc.
The Japan-EU EPA is one of the “MEGA FTAs”. With the economic growth resulting from this EPA, the Japan-EU EPA will contribute to the economic growth of both economic blocs and consequently, the global economy.

Herald of Global Rulemaking

Japan and the EU, which share fundamental values and highly-sophisticated economies and societies aim to achieve rule-making befitting 21st century “Mega FTA”. In addition to negotiations related to Market Access, Japan and the EU aim to become heralds of global rule-making in inclusive spheres such as, Regulatory Harmonization, Non-tariff Measures, Intellectual Property, Government Procurement, Environmental and Labor, etc.

Japan's Interest

  • 1)Tariff elimination of EU Industrial goods (i.e.: Auto 10%, electronic device 14%)
  • 2)Movement of persons and other barriers
  • 3)transparency and improvement of the operation of regulations

EU's Interest

  • 1)Japan's NTM/NTBs on Autos, Drugs, Medical devices and food additives etc.
  • 2)Public procurement (especially market access to railways, electricity and gas in Japan)
  • 3)Geographical Indication (GI)

EU's Interest

EU's Interest

Background of Japan-EU・EPA

METI Minister Motegi Visited Europe (Joint press conference with Commissioner De Gucht)(September 2013)

Talks between METI Minister Motegi and Commissioner De Gucht (November 18th, 2013)

Talks between METI Minister Motegi and Commissioner De Gucht (November 18th, 2013)

Statement of METI Minister Motegi (November 19th post cabinet meeting news conference):

We have come to agreement on 3 critical issues:.
The first is that Japan-EU negotiations are highly important. We must endeavor to reach a high level conclusion to the negotiations at an early date.
The second is that we have come to agreement over the political calendar in the context of future negotiations.
The third is that we have understood mutual concerns of the negotiations, it is important to exchange initial offer at the earliest possible date.

Talks between METI Minister Motegi and Commissioner De Gucht (May 7th, 2014)

Minister Motegi exchanged views with Commissioner De Gucht on the Japan-EU EPA, taking into consideration the EU-Japan Summit Meeting, which was held immediately before the bilateral meeting, and they reaffirmed the significance of early conclusion of the negotiations.

Talks between METI Minister Motegi and Commissioner De Gucht(July 19th,2014)

Both sides exchanged opinions on the Japan-EU EPA, and they shared the goal of reaching an agreement in principle during 2015. They recognized that the negotiations have passed the half-way mark. In order to facilitate the negotiations, they agreed to direct their negotiators for the next meeting to share their intended goals and approaches to achieving those goals in the finalized agreement.

Talks between METI Minister Miyazawa and Commissioner Malmström (January 24th,2015)

Minister Miyazawa exchanged views with Commissioner for Trade Malmström for the first time since taking office. In particular, he pointed out the need for Japan and EU to negotiate the Japan-EU EPA based on the mutual interests and sensitivity perspectives so as to seek a conclusion of the negotiations. Both sides agreed to closely collaborate at the ministerial level to accelerate negotiations toward reaching an agreement in principal of the Japan-EU EPA negotiations during 2015, which was affirmed at the Japan-EU summit meeting in 2014.

The 21st Japan-EU Summit (November 19th, 2013)

Japan - EU Summit Meeting ・Joint Press Statement (November 19th, 2013)(abstract)

(para. 3)Summit leaders underlined the importance of continued progress in the ongoing negotiations for a Strategic Partnership Agreement (SPA) on a comprehensive basis and an ambitious Economic Partnership Agreement (EPA) / Free Trade Agreement (FTA) since the start of the negotiations in April. With a shared perception of the great importance of these two agreements as long-standing foundations for their future partnership, Summit leaders reiterated their commitment to the earliest possible conclusion of these two agreements and instructed the Ministers/Commissioners to press forward the negotiations further. They will, therefore, present without delay ambitious market access offers on trade in goods, trade in services and procurement, and address the issues of non-tariff measures and railways.

(para. 39)Summit leaders recognized the important contribution of the Japan-EU Business Round Table (BRT) to the development of bilateral economic relationships, and reaffirmed their determination to continue cooperation with the business communities on both sides, notably through the BRT, in order to strengthen relations further. They welcomed the recommendations adopted by - 11 -the BRT in April that stated that a deep and comprehensive Japan-EU EPA/FTA should be completed as early as possible, recognizing that the BRT "reiterates its call that the resulting EU-Japan FTA / EPA should be ambitious, balanced, mutually-beneficial, comprehensive, and tackle major outstanding issues", which include tariffs, non-tariff measures, procurement, investment, services, competition, IPR, regulatory cooperation including harmonisation and the mutual recognition of regulations and standards to boost Japan-EU trade and investment and promote job creation and economic growth in both economies.

Joint Press Release

The 22nd Japan-EU Summit (May 7th, 2014)

Japan - EU Summit Meeting ・Joint Press Statement (May 7th, 2014)(abstract)

(para. 3)We reaffirm the importance of strengthening the trade and economic relationship between the EU and Japan, and of the early conclusion of a highly comprehensive and ambitious Free Trade Agreement (FTA)/ Economic Partnership Agreement (EPA) which would play a vital role in this regard, notably by addressing issues related to market access for goods, services and investment, procurement, including railways, and non-tariff measures.We welcome the fact that market access offers have been exchanged on trade in goods, and that steady progress has been made in other areas as well. We reiterated our commitment to a rapid exchange of ambitious market access offers on procurement and on trade in services and investment.

(para. 5)We recognise the active and continued contribution of the EU-Japan Business Round Table (BRT) to further development of bilateral economic relationship, and reaffirm our determination to promote cooperation with the business communities on both sides, notably through the BRT, in order to strengthen relations further with the intention of addressing a wide variety of global challenges. We welcome the recommendations adopted by the BRT in April that “reiterate its calls that the EU and Japanese Authorities should step up their efforts to tackle and resolve the substance of the outstanding issues”, which should include tariffs, non-tariff measures, procurement, investment, services, competition, intellectual property rights, geographical indications and regulatory cooperation, “and that a comprehensive, ambitious, high-level and mutually beneficial FTA/EPA should be concluded as soon as possible”. We are also strongly encouraged by the BRT’s commitment to make every effort to support the early realisation of an EU-Japan FTA/EPA.

Joint Press Release

Reference:Japan-EU Trade Structure

Japan Trade Partner(2012)

EU Trade Partner (2012)

Imports from EU 6.6 trillion yen(64.4 billion euro)

Exports to the EU 6.5 trillion yen(63.4 billion euro)

Reference: Principal EU’s FTA/EPA

・EU-Korea FTA (In force: July, 2011)

○Tariff lines which became duty free on day one: EU:94 % (industrial products 97.3 % 、agricultural products 85.3 % )、Korea: 81.7% (industrial products 90.7 %, agriculture products 40.1%)
In the end, .6% of tariff lines of both sides scheduled to become duty free (industrial products 100 %) * Elimination rate within 10 years: EU 99.6 %,Korea 98.1 %

Tariff of industrial products in EU(MFN tariff) and Examples of tariff concession of EU-Korea FTA

  Product Name MFN Tax Rate
(Japan)
Tariff Concession on EU-Korea FTA * figure in parentheses is tariff elimination date
Automotive Passenger Cars 10% Compact cars (under 1,500cc): Duty free in 5 years (July 1st, 2016)
mid-size / family cars (over 1,500cc): Duty free in 3 years(July 1st, 2014)
Trucks 10-22% Diesel Passenger Cars (under 5t gross weight or over 20t gross weight): Duty free in 5 years (2016)
Other: Duty free in 3 years (2014)
Auto Parts 3-4.5% Duty free on day one
general
machinery
Bearings 7.7-8% Duty free in 3 years (2014)
Outboard Motors 4.2-6.2% Duty free on day one
electric
machine
Color TVs 14% Duty free in 5 years (2016)
Video Recorders 8-14% Type of electromagnetic tape: Duty free on day one, Other: Duty free in 5 years (2016)
Chemical
goods
Ink 6.5% Duty free on day one
Photographic
Chemical
backup stock
6% Duty free on day one

Source: tax rate data:WTO-IDB (2012)

<Sectoral NTM> 4 sectoral groups (automotive, communication devices ・electric goods, chemical goods, medical goods ・ medical devices) are stipulated on Annex.

  • ・EU-Singapore FTA (Agreement: Sept. 2013)
  • ・EU-Canada FTA (CETA)(Agreement: Oct. 2013)

Link

Division in Charge

Economic Partnership Division, Trade Policy Bureau

 
Ministry of Economy, Trade and Industry
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