0. Japan-EU EPA and TPP EU Institute in Japan, Kansai
Project Funded by the European Union
Japan-EU EPA and TPP
EU Institute in Japan, Kansai
Graduate School of Economics, Kobe University
Dr. Prof. YOSHII Masahiko

2. Japan-EU EPA
The Japan-EU EPA will promote trade and investment of both sides through eliminating tariffs and improving trade and investment rules. It will contribute to boosting economic growth, creating employment and strengthening business competitiveness both in Japan and the EU. It will also promote inroads into the European market by Japanese companies.
(MOFA, Japan)

3. What are negotiated? Japan’s main areas of interest
Elimination of high tariffs on industrial products (e.g. passenger cars:10%, electronic devices :14% at the highest)
Regulatory issues facing Japanese companies in Europe should also be proactively addressed in the negotiations.

4. The EU’s main areas of interest
Non-Tariff Measures (NTMs) on automobiles, chemicals, electronic devices, food safety, processed food, medical devices, and pharmaceuticals, among others.
Government procurement (e.g. railways).
Elimination of tariffs on the main export products to Japan.
(MOFA, Japan)

5. Impact of Japan-EU EPA
(MOFA, Japan)

6. Impact of Japan-EU EPA
European Commission, Commission Staff Working Document: Impact Assessment Report on EU-Japan
Trade Relations, 2012, p.37.

7. ibid., p.40.

8. The preferred scenario of the EU is that of an ambitious FTA.
The EU preference for a comprehensive FTA is heavily dependent on Japan’s willingness to tackle the negotiation.
the key areas of concern to the EU = non-tariff measures, government procurement, services and investment and tariffs
Japan’s primary objectives can be fulfilled to a much greater extent via tariff reductions
ibid., p.56.

9. Can TPP be a baseline for EPA?

11. Cases of Beef and Pork
Japan will reduce customs duties for beef to 9 per cent in 16 years, and for pork in 10 years.
Japan may apply a safeguard measure.
Ministry of Agriculture, Forestry and Fishery, The Results of TPP Negotiation for Five Important Items
and Otｈers (in Japanese)

12. Cases of Milk and Cheese
Japan will not reduce customs duties for skim milk and butter, and settle a TPP quota.
Japan will maintain customs duties for mozzarella, camembert and process cheese.
Japan will reduce cheddar, gouda, and cream cheese in 16 years.

13. Case of Motor Vehicle (vs. USA)
The parties shall cooperate bilaterally to harmonise standards for motor vehicle environmental performance and safety (3-1).
Each Party shall ensure that technical regulations related to motor vehicles are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade.
Neither Party shall prevent or unduly delay the placing on its market of a motor vehicle product on the ground that the product incorporates a new technology or a new feature which has not yet been regulated.
To the extent that a party maintains and applies any laws or regulations at the central level of government with respect to zoning applicable to the establishment of distribution or repair facilities for motor vehicles, it shall ensure such laws or regulations are applied in a transparent and non-discriminatory manner.

14. Case of Pharmaceuticals
The Parties shall seek to collaborate through relevant international initiatives, such as those aimed at harmonisation to improve the alignment of their respective regulations and regulatory activities for pharmaceutical products.
Each Party shall provide an applicant that requests marketing authorisation for a pharmaceutical product with its determination within a reasonable period of time.

15. Government Procurement
3 Japan Railway Companies have been eliminated from the government procurement lists as of 28 October, 2014.
Thresholds for construction are settled at:
4.5 mil. SDR for construction services at central government entities.
15 mil. SDR for construction services at sub-central and other government entities, incl. expressway companies and Japan Railway Construction, Transport and Technology Agency.

16. Conclusions
TPP cannot be a baseline for the EU-Japan EPA, as the agreement level of TPP , in general, does not correspond to the level the EU has requested.
It might be very difficult for Japan to concede to the requests from the EU, especially, in the agricultural sector.

17. The Japan-EU EPA can create better conditions for the both sides to develop their economies in the harder environment.
Japan needs tougher efforts to persuade the internal pressures, especially from the agricultural sector.
The EU also needs to persuade the internal pressures, especially from the manufacturing (automobile) sector.

18. Thank you for your attention!