At the time of EUROPE going to press on Thursday 29 June, European commissioners Cecilia Malmström (Trade) and Phil Hogan (Agriculture) were travelling to Tokyo to try and finalise a political agreement with the Japanese government on sealing the EU-Japan free trade negotiations. These negotiations were launched in 2013.
"I reported on the progress we have made in the negotiations with Japan and with Canada. There are still a few sticking points. I have therefore sent the European agriculture commissioner and the trade commissioner to Japan so that these discussions can be concluded before the summit between the European Union and Japan on 6 July. The trade agreement with Japan, if it materialises, is important. And I am assuming that it will materialise. It will fully comply with all European rules, requirements and standards", European Commission President Jean-Claude Juncker said in Berlin on Thursday, where he was preparing for the G20 summit in Hamburg on 7-8 July.
"Will be leaving for Tokyo tonight with Phil Hogan to try to finalise our trade negotiations and achieve political agreement", Malmström confirmed before leaving.
Japan's head of diplomacy, Fumio Kishida, meanwhile also confirmed that the two European commissioners would be visiting on Friday and Saturday.
The European and Japanese negotiators have been engaged in "intense negotiations for three weeks in order to resolve their differences" and "we have made headway", Kishida assured, admitting that he expected "very difficult" discussions to iron out the last differences. The goal is to reach an agreement in principle on the sidelines of the G20 summit in Hamburg.
The two main points stumbling points in the talks are dairy products and automobiles.
With regard to dairy products, the EU is asking Japan to remove its taxes (of around 30%) that are applied to cheeses imported from European countries. However, under pressure from the liberal democrat party that dominates the Japanese parliament, the government of Japan's Prime Minister Shinzo Abe is balking at going further than the reductions agreed as part of the Transpacific Partnership (TPP) that was signed by Tokyo with 12 countries from the Asia-Pacific region (including the USA, which has just withdrawn from it).
Regarding automobiles, Japan is asking for European taxes to be removed on Japanese cars, but the EU wants a grace period of over ten years.
A compromise will be based on a delicate balance including the whole agricultural section, services, access to public procurement (especially access to the Japanese railway market), regulatory issues, intellectual property (including geographical indications), a chapter on sustainable development, and the issue of including the EU-promoted system of a special court to arbitrate in investment disputes in the future agreement. (Original version in French by Emmanuel Hagry)