The Japan-EU Free Trade Agreement (FTA) is a comprehensive trade agreement between Japan and the European Union. It was signed in July 2018 after four years of negotiations and went into effect in February 2019.
The Japan-EU FTA is a landmark agreement as it creates one of the largest free trade areas in the world, covering nearly 30% of global GDP. The agreement eliminates tariffs on a wide range of products and services, including agriculture, fisheries, and industrial products. It also includes provisions on intellectual property protection, e-commerce, and government procurement.
One of the key benefits of the Japan-EU FTA is increased market access for businesses on both sides. For Japanese businesses, the agreement provides access to the EU`s large consumer market, while EU businesses gain easier access to Japan`s highly developed and technologically advanced economy.
The agreement also helps strengthen economic ties between Japan and the EU, which have historically been strong partners in trade and investment. In 2018, Japan and the EU had a bilateral trade relationship worth €129 billion in goods and €38 billion in services.
In terms of specific industries impacted by the Japan-EU FTA, the removal of tariffs on Japanese automobiles is expected to benefit Japanese car manufacturers such as Toyota, Honda, and Nissan. Meanwhile, EU companies exporting agricultural products such as wine, cheese, and pork will benefit from the elimination of Japanese tariffs.
The Japan-EU FTA also has significant implications for global trade as it signals a commitment to free trade and globalization. In an era where protectionism and trade tensions are on the rise, the agreement demonstrates that countries are still willing to collaborate on trade and investment.
Overall, the Japan-EU FTA serves as an important example of the benefits of free trade and international cooperation. By eliminating trade barriers and increasing market access, the agreement has the potential to benefit businesses and consumers in both Japan and the EU.