[ad_1]
Signing of the JEFTA agreement: In full trade dispute with US President Donald Trump, the EU and Japan want to set an example against protectionism.
05:30, 17 July 2018
The EU and Japan sign today a Tokyo's far-reaching Free Trade Agreement, which is expected to come into force next year. According to the EU, the so-called European Partnership Agreement is "the largest bilateral trade partnership ever negotiated by the European Union". It will be signed by the President of the European Commission Jean-Claude Juncker the President of the Council of the EU Donald Tusk and the Japanese Prime Minister Shinzo Abe . ? What are the key points? An Overview:
COMMERCIAL 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 amounted to about 28 billion euros
CUSTOMS TRANSFER
The full 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
The agreement aims to bring 85% of EU agricultural exports to Japan duty-free. This is immediately the case with processed pork, for example. In the case of livestock, the duty rate gradually increases from 38.5 to 9 per cent over 15 years. In the case of wine, the 15 per cent tariff is immediately eliminated and for hard cheeses such as cheddar, the surcharge is 29.8 per cent
Japan recognizes more than 200 denominations such as Parmesan. or "Irish Whiskey". The products are thus protected on the Japanese market and can be marketed more profitably.
SERVICES
Services are particularly open to the financial services, telecommunications and transportation markets. "No government is obliged to privatize or deregulate public services at national or local level," says the Commission.
EXPECTED GROWTH
Given the size of the Japanese market of 127 million people, the EU expects an increase in its exports of goods and services services by up to 24 percent. Exports of processed foods such as meat and dairy products to Japan could increase up to 180%. For chemicals, Brussels predicts a growth of 4 to 22%
CRITICISM
The Foodwatch consumer organization points out that the agreement, also known as JEFTA, provides for the following: harmonization of standards and standards. The environmental organization BUND feared for its part a relaxation of the 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 ACCEPTANCE OF NATIONAL PARLIAMENTS
Foodwatch also considers that national parliaments can not vote on this agreement because It is perceived as a mere commercial pact. The Commission is within the competence of the EU. The necessary agreement of the Member States has already taken place in early July, the European Parliament must approve the agreement after its signature.
However, there is an element of investment that should also be approved by parliaments at the national level.
JAPAN'S COMMERCIAL RELATIONS WITH AUSTRIA
In 2017, according to the Institute of International Economic Studies Vienna (wiiw), Austria exported goods to Japan valued at 1.38 billion euros. This places Japan 19th among Austrian export destinations with a share of 0.97% of total Austrian exports and 5th among domestic consumers outside the EU with a share of 3, 22%.
Japan's imports rise to 2.15 billion euros in 2017. Japan ranks 15th among all countries of origin for Austrian imports with a share of 1, 46 per cent and fifth for imports from third countries with a share of 5 per cent.
Source link
