Signal against Trump: EU and Japan sign free trade agreement

According to the EU, the so-called European Partnership Agreement is "the largest bilateral trading partnership ever negotiated by the European Union".

Trade Volume

In 2017, Japan was the sixth largest trading partner of the EU in terms of goods after the United States, China, Switzerland, Russia and Turkey. The volume of transactions amounted to 129.4 billion euros. The value of EU goods exports amounted to 60.4 billion euros. In contrast, goods for 68.8 billion euros were imported from Japan to the EU. According to the European Commission, the value of services provided by the EU in Japan rose to about 28 billion euros.

Tariff Elimination

The entry into force of the Agreement removes 99% of duties on goods exported to Japan. For the remaining rights, there are usually reductions. Overall, the EU estimates savings for EU exporters at around one billion euros a year.

Agricultural Products

Ultimately, 85% of EU agricultural exports should go to Japan duty-free. This is immediately the case with processed pork, for example. In the case of cattle, the duty rate falls gradually over 15 years from 38.5 to 9 per cent. With wine, prior customs duties of 15 percent fall immediately and, with hard cheese, the 29 percent import surcharge is removed.

Protection of Geographical Names

Japan recognizes more than 200 names of geographical products from Europe, such as "Parmesan" or "Irish Whiskey". The products are thus protected on the Japanese market and can be marketed more profitably.

Services

In particular, the markets for financial services, telecommunications and transport are open. "No government is obliged to privatize or deregulate public services at national or local level," says the Commission.

Expected Increases

Given the size of the Japanese market of 127 million people, the EU expects its exports of goods and services to increase by 24%. Exports of processed foods such as meat and dairy products to Japan could increase up to 180%. For chemicals, Brussels expects an increase of 4 to 22%.

Criticism

Consumer and environmental organizations point out that the agreement, also known as Jephta, provides for the harmonization of standards and norms. This would increase the risk that environmental and consumer protection standards are virtually frozen and can hardly be improved.

The BUND environmental organization fears a relaxation of the so-called precautionary principle in the EU. It also allows for product bans and product recalls, even though scientific data does not allow for a complete risk badessment. The European Commission, for its part, stresses that the precautionary principle is enshrined in European law and will be maintained

No approval by national parliaments

The Foodwatch consumer organization also considers that national parliaments can not vote on this agreement. from the point of view of the Commission in the competence of the EU. The then necessary agreement of the Member States had already been taken at the beginning of July, the European Parliament should approve the agreement after the signature.

However, some of the investment should also be approved by parliaments at the national level. This is initially decoupled and will be decided later.

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