Brussels, 15/04/2013 (Agence Europe) - European and Japanese negotiators are meeting this week in Brussels for the first round of negotiations for a free-trade agreement.
On Monday 15 April, the EU and Japan formally began talks on free trade. This first session is expected to continue until 19 April. The two partners are also expected to discuss specific areas to be covered, as well as the methods for negotiating an agreement covering the liberalisation of tariffs, the lifting of non-tariff barriers and regulatory convergence, services, investment and public procurement.
Despite the postponement of the Tokyo summit on 25 March, European and Japanese leaders have given formal approval for the launch of negotiations. Commissioner Karel De Gucht travelled to Tokyo at the end of March and pointed out that Japan had to make substantial efforts if goals are to be achieved. He informed Japanese employers that “there are still too many barriers (to access to the Japanese market). We are confronting regulatory discrimination, different standards and restrictions on public procurement”. He also said that European exports to Japan had fallen over recent years and that the country, which was the EU's third biggest export market ten years ago, was now only the seventh biggest market for the EU.
The lifting of Japanese non-tariff barriers is key to the negotiations. The European negotiating brief contains a revision clause for 2014, which will examine Japan's progress in this area, as well as a suspensive clause if progress is deemed insufficient. In an effort to convince member states harbouring misgivings, Japan has already made a number of concessions on sensitive issues, including the opening up of its market to European beef.
In 2011, the EU accounted for 11% of Japan's trade and the country was the EU's third biggest trading partner. Japan is the EU's seventh biggest export market. In the same year, EU exports to Japan were worth €49 billion and its imports from the country were worth €69 billion. EU foreign direct investment in Japan is still low compared to other industrialised countries. The future agreement will create an increase in EU GDP of between 0.6% and 0.8%. EU exports to Japan could increase by 32.7% and those from Japan to the EU by 23.5%. (EH/transl.fl)