Automobile industry calls for balanced outcome in EU-Japan FTA

As the EU and Japan get closer to entering into a comprehensive free trade agreement, though it seems that it is being presented as a finished project despite there being a lot of loose ends to tie up, ACEA has drawn attention to some particular aspects important to the motor industry, according to this press release. The removal of tariffs on imports into the EU from Japan (currently 10 per cent on cars, and up to 22 per cent on commercial vehicles) must be balanced by a reduction in non-tariff barriers in the opposite direction, says ACEA. While opening the Japanese market to EU dairy products promises benefits to European producers, in the automotive sector - the other area in which the free trade agreement will be important - the benefits are likely to flow the other way. By drawing attention to the fact that under a free trade agreement with South Korea that has been in operation for nearly six years there are still outstanding problems with non-tariff barriers, the organisation emphasises the importance of having procedures to deal with disputes as well as encouraging collaboration in regulatory matters.



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EU set to scrap tariffs on Japanese car parts

The European Union is ready to propose immediately scrapping import tariffs on most Japanese car parts in trade negotiations now under way, according to the Nikkei daily quoted by Reuters on 15 June. In return the EU will press Japan to reduce or abolish tariffs on agricultural products - a step which would face considerable opposition in Japan, demonstrating rather nicely the sort of thing that goes on in international trade negotiations. A tempting offer, with a difficult quid pro quo in return - there's going to be a lot of this going in as Brexit talks get under way, starting on Monday 19th.

The Nikkei goes on to say that Japanese and European negotiators are continuing talks, which began in 2013, in Tokyo to reach a broad deal on signing an economic partnership agreement in early July. Such a deal is one of the key goals of premier Shinzo Abe's "Abenomics" stimulus programs and growth strategy to revive the country's stagnant economy. The EU accounts for about a tenth of Japan's foreign trade, and at present the EU imposes a tariff around 3 to 4 per cent on parts and 10 per cent on cars imported from Japan.