What led to the Japan/EU free trade deal?
- Japan is a huge market for EU exports, the second biggest trading partner in Asia after China.
- Each year the EU sells 58 billion Euros worth of goods and 28 billion Euros of services to Japan.
- With a wealthy population of 127 million, Japan, which is the world’s fourth largest economy, holds huge potential for EU firms looking to export.
- Although Japan is the world’s third largest consumer market, it is only Europe’s seventh biggest export market revealing the unexploited potential.
- About 10% of Japan’s trade is with the EU, making it the country’s third most important trading partner.
- High import duties were one of the key barriers to trade, which have now been lifted under the free trade agreement.
- Japan currently imposes high tariffs on European food products, including 15% on wine, 24% on pasta,30% on chocolate and 40% on cheese.
- An independent Impact Assesment of a potential trade deal with Japan suggests it could increase EU output by up to 0.76%.
- Exports to Japan from the EU could soar by a third under a free trade deal according to a study by the London School of Economics
- Japan had been one of the signatories to the planned Trans-Pacific Partnership that Donald Trump ditched on his first day in office.
Source: EU