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EU and Japan Tout Removal of Tariffs

Posted on Apr. 29, 2019

Trade talks between the EU and Japan have resulted in the implementation of two agreements, one of which scraps the majority of the tariffs placed on products from both parties.

During his speech at the 26th EU-Japan Summit, which took place in Brussels April 25, European Commission President Jean-Claude Juncker said that most of the €1 billion in tariffs paid by EU companies have been abolished. He predicted that once the EU-Japan economic partnership agreement (EPA) is in full swing, “99 percent of the duties on goods imported” will be no more, adding that this will increase trade by “nearly €36 billion.”

Both parties reaffirmed their support of the EU-Japan strategic partnership agreement and the EPA, according to a European Commission release. Both agreements entered into force February 1.

In a joint statementEuropean Council President Donald Tusk, Japanese Prime Minister Shinzo Abe, and Juncker referred to the EPA as one of their greatest achievements, saying that it will promote free and fair trade and investment.

The EPA will eliminate or lower tariffs on agriculture, food products, industrial products, fisheries, and forestry. Non-tariff barriers were also addressed, as it is often difficult for EU countries to access the Japanese market, which is highly regulated. The adoption of international standards on products such as motor vehicles, medical devices, textile labeling, and beer will make exportation easier. However, the EPA also includes a clause that allows the EU to reapply tariffs on motor vehicles if Japan reintroduces non-tariff barriers.

After the summit, Abe went to meet with U.S. President Trump in Washington as part of Abe's weeklong trip to Europe and North America in preparation for the June G-20 Osaka summit. A tweet from the prime minister's official account expressed Abe's hopes that during that meeting, there would be discussions concerning a wide range of bilateral and global issues, signaling the possibility of further action on the Japan-U.S. trade agreement.

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