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Europe Daily Bulletin No. 10378
Contents Publication in full By article 24 / 38
GENERAL NEWS / (eu) eu/trade

EU/Japan agreement - substance rather than timetable

Brussels, 13/05/2011 (Agence Europe) - Despite the expectations of Japan, which is still smarting from the earthquake and tsunami that devastated its coast on 11 March, the EU will not be launching talks for a free trade agreement with the 3rd global economy during the next bilateral summit on 28 May. Meeting in Brussels on 13 May, European trade ministers agreed it was necessary to have a clearer idea of the ambit of the future agreement before any decision could be taken on officially triggering talks. On Friday, the 27 nation bloc backed the idea floated by Trade Commissioner Karel De Gucht that a “scoping” exercise for marking the limits of the agreement should be carried out, launched by the president of the European Council, Herman Van Rompuy, and Japan's Prime Minister Naoto Kan during the summit. It is naturally hoped on the European side that Japan will undertake to include non-tariff barriers in the scope of the agreement. Speaking after the Council, De Gucht said they believe it is important that the conditions for launching negotiation should be put in place. He also asserted that they have a great desire to open talks as soon as possible, and that the Japanese, for their part, must demonstrate their real determination to move forward.

Addressing the European Parliament on 9 May, the trade commissioner pointed out that the conditions for a trade pact with Japan must be examined on the basis of Japan's proving its ability to tackle non-tariff barriers and public procurement restrictions. At this stage, Japanese authorities have proposed solutions for only 3 of the 27 tariff barriers denounced by the EU, namely for the automotive sector, liqueurs and food additives. De Gucht also set out the following expectations regarding the level of ambition of a free trade agreement which, in his view, should include: - access to the free market for duties and quotas for 100% of goods; - credible roadmaps to eliminate a “critical mass” of non-tariff barriers; - an open investment regime to achieve levels of foreign direct investment (FDI) in Japan that are comparable to those of other OECD countries; - and the opening of public markets in Japan to a degree of openness comparable to that found in the EU. De Gucht also recommended the option of a complete bilateral framework that adequately reflects the EU-Japan strategic partnership, including trade and investment as well as political and cooperation aspects.

On 11 May, Chancellor Angela Merkel spoke of Germany's official support for a trade pact with Japan, thus coming into line with Prime Minister David Cameron for the United Kingdom and José Luis Zapatero for Spain. (E.H./transl.jl)

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