Brussels, 25/09/2013 (Agence Europe) - European Commissioner for Trade Karel De Gucht has agreed with Japan's Minister for the Economy Toshimitsu Motegi to proceed with exchanging offers on goods and services before the summit in November.
Meeting in Brussels on 24 November, De Gucht and Motegi shared their common desire to progress to a free trade agreement quickly. The negotiations for this began in April. “The EU-Japan trade agreement remains a key priority and we hope to be able to move fast with the third round of negotiations in October in Brussels and at the upcoming summit in November”, said De Gucht.
After the first round in April, the second round of talks in Tokyo at the end of June/beginning of July focused on the text of the future agreement in all the sectors covered. Fourteen different working groups dealt, in particular, with trade in goods, services, investments, competition, public procurement and sustainable development. The negotiators will meet again in Brussels on 21-25 October, then in Tokyo at the beginning of 2014. According to analysts, the negotiations might need almost five years.
In an effort to accelerate the process, De Gucht and Motegi agreed to exchange offers on goods and services “as soon as possible” so that they might be discussed at the EU-Japan summit, which will take place in Japan in November. “With a good dose of political resolve and a restricted timeline, highly technical issues could be overcome and strong domestic grievances addressed. We are working at a sustained pace and I hope the summit can put some impetus into the process”, De Gucht said, implying that it was important not to delay and that the sooner an agreement is concluded, the quicker the profits for the two ailing economies.
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.
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 a suspension clause if the progress is insufficient.
Although the parties have red lines for sensitive products, for which they will exchange lists - on the Japanese side, the sensitive products are traditionally rice, sugar, beef, pork and diary products, 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 in (or indeed the removal of) Japanese regulatory and technical barriers. 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). (EH/transl.fl)