This bilateral economic and commercial cooperation agreement is one of the greatest ever signed by the European Union (1st world economic power) and Japan (4th world economic power). Together, they both represent more than one third of world GDP and around 500 million consumers.
Elimination of customs duties
The elimination of duties continues to be the main objective of this agreement. Duties represent almost one billion euros per year and could be almost entirely eliminated. Japan’s interests are focused on the automobile industry, in which it hopes to eliminate customs duties for its exports to Europe within the next eight years. Meanwhile, Europe hopes to increase exports of its processed foods (by 180%) and of its chemical products (by 20%).
Thanks to the JEFTA, 85% of products pertaining to the EU agri-food sector such as wine and pork, should be able to enter Japan without being subject to customs duties. Taxes on other products, such as beef, will be gradually reduced. The Japanese market, which is expanding rapidly, represents a business opportunity for European farmers and livestock breeders.
Requirements of the Japanese market
One of our blog entries “Business in Japan
” addressed the issue of the characteristics of the Japanese culture in the field of business. The way to greet partners, punctuality, aesthetics, the greeting (or rather greetings), business cards, gifts, etc. This agreement, the negotiation stage of which was initiated in 2013, will come into force in 2019. Without a doubt, the elimination (or reduction) of customs duties will enable companies to become more competitive on the Japanese market, increasing their probabilities of success.