The EU has repeated its desire to conclude negotiations with Japan in 2017 on a free trade agreement. The two parties are reportedly close to an agreement on services (see EUROPE 11728).
“I see no reason, at the current stage of the negotiations, not to conclude this year”, a European source stated on Monday 20 February, admitting, however, that they did not know if the negotiations would be successful “in March, June or September”. The conclusion of an agreement would particularly depend, at this stage, on the political decisions at the level of the EU and Japan.
Agriculture, a sensitive section. As the EU and Japan are large exporters of agri-food products, the free trade negotiations promise to be delicate on the agricultural section. The ‘sensitive’ sectors in Japan are well-known (beef, pork, dairy products, rice). The EU is ready to recognise the sensitive nature of these products, but hopes for as big a liberalisation as possible, a European source stated. The EU wants to obtain increased access to the Japanese market for its exports of dairy products, beef, pork meat and wine. Japan is in the process of reforming certain sectors, and the European party hopes that this domestic discussion will not be part of the talks for the EU-Japan free trade agreement.
As regards the automobile sector, the EU notes a “strategic convergence” with Japan on standards. Japan is calling for the total liberalisation of the EU market. “This can be done if the agreement is solid enough” on non-tariff measures, the European party confirmed (see EUROPE 11692).
As part of the negotiations with Japan, the EU has proposed the same Investment Court system as provided for in the free trade agreements between the EU and Vietnam, and the EU and Canada (CETA). The EU is still waiting for Japan’s response to its proposal. After the 17th round of free trade talks in September 2016, the technical level discussions have continued without interruption, enabling substantial progress (see EUROPE 11694). (Original version in French by Lionel Changeur)