Brussels, 08/05/2014 (Agence Europe) - Whilst keeping up the pressure on Japan, Commissioner Karel De Gucht suggested on Thursday 8 May that the country was on the right track in its efforts to remove non-tariff barriers as requested by the EU in the bilateral free-trade negotiations.
After the European trade ministers meeting on Thursday 8 May in Brussels, De Gucht stated: “Allow me not to be too specific about the progress, but what I see is that the offer they have introduced on goods is not stunning, but at the level you would expect after a first exchange of offers”. In reference to the agreement reached with Japan on a “vast majority” of UN-ECE regulations in the automobile sector, the commissioner explained that, “on non-tariff barriers, there have been delivery, it is of good omen”
On Thursday, the Commission informed the Council of the main elements in a progress report on Japan's implementation of its commitments on removing non-tariff barriers in the ongoing free-trade negotiations launched in April 2013. Commissioner De Gucht said that he hoped that the report would be finalised “by the end of June” so that it could be then examined under the Greek Presidency by the trade policy Council committee experts.
Strict reciprocity has been established in these negotiations between the EU's efforts to promote tariff liberalisation (particularly on Japanese car imports) and the lifting of 31 non-tariff barriers in Japan, which can be strict safety and certification standards protecting a number of its markets (cars, railways, medicines and food). Built into the EU's negotiating mandate, the assessment, after one year, of Japan's efforts on non-tariff barriers could lead to negotiations being suspended if the EU believes progress has been insufficient.
On Thursday, De Gucht appeared rather optimistic but also demonstrated that he would not let up on the pressure exerted on his Japanese partners, saying that “the EU-Japan summit on 7 May recalled the need for a high level of ambition, and the need of this ambition to be matched with real actions by the Japanese counterpart. I can only agree with that”. Following the summit on Wednesday, the president of the Commission, José Manuel Barroso, called for “the speed of negotiations to be accelerated” but also underlining that “a high level of ambition is needed in all areas, particularly access to the market for goods and farm products, non-tariff measures, public procurement and geographic indications”.
European and Japanese negotiators exchanged offers on market access for goods during the fifth round of negotiations at the beginning of April in Tokyo (see EUROPE 11054).
The benefits expected from the future agreement are significant as it could generate an increase in EU GDP of between 0.6% and 0.8%. EU exports to Japan could increase by more than 30% and those from Japan to the EU by more than 20%, according to the Commission. In 2012, the EU had a deficit of €13.5 billion in goods with Japan but enjoyed a surplus of almost €10 billion in services. The investment balance sheet was clearly in deficit for the EU in 2011 when it registered negative foreign direct investment stocks of € 58.4 billion. (EH)