Mission Accomplished -The EU-Japan EPA Agreement
A time to celebrate
AUTHOR
Danny Risberg
Chairman, European Business Council in Japan
Chairman, Philips Electronics Japan, Ltd.
It is a great honour for me to comment on the EU-Japan Economic Partnership Agreement (EPA) on behalf of the European Business Council in Japan (EBC).
The EBC is the trade policy arm of 17 European National Chambers of Commerce and Business Associations in Japan. We carry out a range of activities aimed at promoting the interests of European businesses in Japan through trade policy-related initiatives. My own company, which chairs and runs the EBC Medical Equipment Committee, is just one of many members of the 24 EBC business sector committees. These committees identify shortcomings in the current business and investment environment in Japan and put forth recommendations for improvement, which they then address to the relevant authorities.
The EBC has been an enthusiastic promoter of the EU- Japan EPA since 2007. At that time, we realised that the traditional EU-Japan regulatory dialogue would not deliver substantial reform, let alone the true potential of the trade relationship.
The EU is arguably the world’s best model of integrated economies, making it an ideal EPA partner for Japan. Studies show that the successful conclusion of an ambitious trade agreement between the EU and Japan could deliver a potential 32.7% increase in EU exports to Japan. Japanese exports to the EU could rise by as much as 23.5%. So we were delighted when finally, in 2013, a decision was taken to launch the negotiations towards an Agreement. We worked hard from that time to support the EU negotiators with the views and technical input from European industry experts based in Japan and were extremely pleased when, in December 2017, the negotiations reached a successful conclusion.
We in the EBC were convinced that all issues on the table must be resolved to the satisfaction of both sides for a final agreement to deliver sustainable benefits. With that in mind, I would like to take this opportunity to recall our priorities and highlight the elements that the EBC believes have been achieved with this agreement.
The EPA negotiations cover many crucial aspects of the EU-Japan trade relationship, including tariffs, non-tariff barriers, services, investment, procurement, sanitary and phyto-sanitary measures, rules of origin, intellectual property and competition.
From an EU business perspective, we are therefore confident that the agreement will deliver the following:
Removal or lowering of tariffs. While Japan has, in general, low industrial tariffs, food and drink, and other agricultural products still face high tariffs. This sector will benefit greatly from the elimination and/or reduction of tariffs. I should also mention that the metal and chemical industry will also benefit.
Mutual recognition of standards, product certifications and marketing authorisations, and adoption of international standards - for example in terms of automobiles, household products, medical diagnostics and telecommunications equipment among many other areas.
Removal of barriers, such as unnecessary costs and burdensome administrative procedures, that prevent or delay products from reaching the Japanese market – for example, better recognition of test reports and conformity assessments, excessive regulation and Japan-only product labelling requirements.
Fair competition and equal treatment of all companies in the Japanese market, domestic and foreign - for example, in the shipping sector, express delivery and insurance sectors. Japan should welcome greater competition in the market.
Fair and open tenders for public contracts – for example, in Japan’s railway and construction sectors.
Adequate protection of geographical indications was regarded as important to complement the reduction in tariffs and is part of a strong overall chapter on intellectual property rights (IPR). We are therefore happy to see the vast number of GIs that will be protected when the agreement enters into force without having to go through the Japanese application process.
Published 2018