The historic Economic Partnership Agreement (EPA) with Japan is expected to establish a free trade area that is nearly one-third of the world's gross domestic product (GDP) and a market of 635 million people.
According to the European Commission, the agreement should generate a 34% increase in exports for the EU and 29% for Japan once the agreement is fully implemented, and remove the vast majority of the €1 billion in customs duties paid each year by European companies exporting to the archipelago.
But for Jean-Claude Juncker, President of the European Commission, "more than anything, this agreement [...] also embodies values and principles, guided by equity. It makes sure that our principles in areas such as labour, safety, climate and consumer protection” are respected, he said in a statement.
A major winner of this treaty, the European agri-food sector will benefit, over a period of 15 years, from the abolition of Japanese customs duties on dairy products and European wine as well as the protection of 200 European geographical indications.
On the Japanese side, the automotive industry is the main winner: at the end of the seven-year transition period, Japanese cars will enter duty-free.
The agreement opens up service markets, guarantees EU companies access to public procurement in 54 major Japanese cities and removes barriers to public procurement in the rail sector.
Finally, the agreement also includes an "ambitious" chapter on sustainable development, covering high common standards in labour, safety, environment and consumer protection and a specific commitment to the international climate agreement concluded in Paris in 2015. It may also be revised and strengthened in the future: some MEPs considered the guarantees on the environment and public services (see EUROPE 12158) insufficient. (Original version in French by Hermine Donceel)