Strasbourg, 04/07/2013 (Agence Europe) - European and Japanese negotiators have rolled up their sleeves. Work began in Tokyo this week on all sectors covered by the future agreement.
The second round of talks for a free-trade agreement between the EU and Japan, which was held in Tokyo on 24 June-3 July, focused on the text of the future agreement in all the sectors covered. The negotiating sessions were spread across 14 different working groups that dealt with subjects such as trade in goods, services, investment, competition, public procurement and sustainable development. The negotiators will meet again on 21-25 October in Brussels, and then at the beginning of 2014 in Tokyo.
The objective is to conclude an overall agreement on goods, services and investment, aiming to remove tariff and non-tariff barriers, and covering other aspects linked to trade - especially public procurement, regulatory issues and sustainable development. Brussels and Tokyo held discussions on the roadmaps for lifting Japanese non-tariff barriers - which are the key to the negotiations. A strict parallel was established between the reduction of the EU's tariff barriers and the lifting of Japan's non-tariff barriers. The European negotiating mandate has a revision clause in 2014 in order to assess Tokyo's progress on non-tariff barriers, and the mandate also has a suspension clause if Tokyo's progress is insufficient.
Although the parties have red lines for sensitive products - on the Japanese side, these are traditionally rice, sugar, beef, pork and dairy products; and on the European side, they are cars - these products will not be excluded from the negotiations. Automobiles will be a key element in the negotiations - with Japan wanting a total dismantling of tariffs on the European side, and the EU wanting a drastic reduction (or indeed the removal) of Japanese regulatory and technical barriers in return. Public procurement is another important element - with the EU awaiting concessions from Tokyo (which is already involved in improving some of its tendering procedures, particularly in the railway sector).
Sizeable gains are expected as an agreement would bring a rise of 0.6%-0.8% in EU GDP. EU exports to Japan could increase by 32.7%, and those of Japan to the EU by 23.5%. In 2011, EU exports to Japan stood at €49 billion, and its imports from Japan stood at €69 billion. The EU has a recurrent trade deficit with its Asian partner. EU investment in Japan is weak in relation to other rich countries. (EH/transl.fl)