What is the trade agreement between the EU and Japan concerns

In Tokyo, Prime Minister Shinzo Abe signed on behalf of Japan and President Jean-Claude Juncker and the President of the EU Donald Tusk

. In fact, this would happen last week in Brussels, but because of the torrential rains that hit Japan last week, the moment was changing and the EU delegation was traveling to the land of the sun Levant.

Why is this agreement so important?

Every year, European companies export 86 billion euros worth of goods and services to Japan. The country is the largest sales market for European countries in Asia after China. Japan is also the third largest economy in the world with a population of 127 million

Trade is now hampered by rules that penalize foreign companies against Japanese companies.

The Free Trade Agreement applies the same rules to European and Japanese companies. In addition, the import and export are also easier in itself, since the customs procedures are simplified.

European Commissioner Cecilia Malmström with Japanese Foreign Minister Fumio Kishida at a meeting last year. (Photo: AFP)

After all, it is no longer necessary to check if the goods meet the quality requirements of a country because the same requirements apply in the country. other country. The trade agreement allows European companies to save 1 billion euros in import duties on an annual basis.

And because the trade becomes easier, more action will be taken, as well as thought. A spokeswoman for EU Trade Commissioner Malmström said the agreement is expected to generate 13.2% more trade, equivalent to 13.5 billion euros.

And the Netherlands, do we benefit too?

Trade with Japan is not very impressive. Last year, we exported for 3.6 billion euros, according to statistics from Statistics Netherlands. We imported more than double, nearly 7.8 billion euros. For comparison: for our most important trading partner, Germany, we "exported" last year for 107 billion euros.

According to the European Commission, nearly 3,000 Dutch companies export to Japan and more than 26,000 people work in these companies. The agreement is, among other things, good news for dairy farmers: the 29.8 percent import levy on cheese is being abandoned.

Everything is over?

No, this is not the case. There is still no agreement on an important part, which deals with how the quarrels between investors and governments are settled.

Investor protection was also a hot topic for the TTIP and CETA trade agreements, because the judges are dismissed when a company wants to sue a country. In the fall, negotiations continue on how this type of conflict will be resolved.

Also read: ISDS 50 years: Does this investor protection have 100?

The Continued

The European Parliament and its Japanese counterpart, Diet, will still vote on the part of the treaty that has already been agreed. According to a spokesman for the Commission, the Convention will come into force early next year if it gives its approval.