Food manufacturers hope to open the Japanese market more widely

The country's leading dairy processors are waiting for export tariffs to drop in Japan as they will increase the competitiveness of their products. pixabay.com photo

After the entry into force of the European Union (EU) and Japan Free Trade Agreement signed this week, reduction of Lithuanian tariffs, milk processors and fish and winemakers hope to open the Japanese market more widely. For meat processors, this market is probably not as advanced, with the Japanese reacting sensitively to the scars of African swine fever in Lithuania. And new car buyers in Lithuania are expecting a drop in prices of Japanese cars.

European and Japanese leaders signed a free trade agreement on Tuesday. After ratification by both parties, it could come into force in 2019.

Expecting to move further

After the entry into force of the Free Trade Agreement, the Japan should abolish some 15%. customs for wine. It is current for the great French, Italian or Spanish winemakers. However, in Japanese stores and now you can find the manufacturer of alcohol "Anykščių vynas" fruit and wine berry "Voruta" and "Alita" sparkling wine. Every year, Anykščių Vynas exports about 5,000 to Japan. Liters of wine "Voruta" and 3-4 thousand. liter of sparkling wine "Alita". When tariffs are lifted, their price in Japan could fall by 10%.

One of the most important food production groups belonging to Visvaldas Matijosaitis, the "Vičiūnai Group", cooperates with one of the most important marubeni merchants of Japan. This year, more than a million dollars should be provided in Japan. EUR of these fish. It is expected that a free trade agreement will facilitate exports to Japan. The company wants to import mackerel, salmon and surimi products

The EU and Japan should abolish mutual tariffs for fishery products through free trade.

Dairy products will be different

The country's largest milk processors are waiting for lower export tariffs in Japan, as this will increase the competitiveness of their products. Rimas Varkulevičius, one of the largest milk processing companies in Lithuania, "Marijampolės pieno konservai", says that the company plans to transport more skimmed milk powder and condensed milk without sugar to Japan. The company sometimes exports these products, but these are not long-term deals.

Vilkyškių pieninė director Gintaras Bertašius thinks that he had previously tried to export cheese to Japan and that he intended to carry high concentration whey protein. The dairy talks about Japan's potential protein market when it invests in whey processing chains, and a free trade agreement should encourage exports of these products.

Dalius Trumpa, cheese producer Rokiškio sūris, plans to offer hard cheese and mozzarella. The company sent test cheeses earlier, but up to now the production was not competitive due to tariffs.

The EU-Japan Free Trade Agreement provides for the elimination of nearly 30% of European cheeses.

Obstacle – African swine fever

One of the main elements of the free trade agreements between the EU and Japan is the facilitation of trade in pork and beef, gradually reduce import duties. According to the European Commission (EC), pork is the main engine of export from the EU to Japan. However, Audrius Kantauskas, director of one of the largest meat processing companies in Lithuania, Biovela Group, said that export to Japan was hampered by the spread of African swine fever in Lithuania . According to him, it is currently difficult for processors of pork and beef to export to many Lithuanian markets because the state is very sensitive to import markets where African swine fever was detected

. in Japan, and no pork is traded.

Japanese cars can be cut short

The liberalization of import duties on cars and parts of Europe in Europe is particularly important for Japan in a free agreement -exchange. Vitoldas Milius, director of the Lithuanian Association of Independent Travelers Associations, believes that this could mean a drop in prices of Japanese cars in the EU, although a significant proportion of Japanese car models are products in Europe. According to him, Japanese cars will be more likely to compete with European cars because of these changes.

"The price for a Lithuanian buyer is an important criterion for the purchase of a car.I think Japanese cars will compete a little more easily with European cars," said Milius. However, he does not believe that, as a result of the reduction in duties, the changes in competition will be so great that European car manufacturers will also lower prices.