EU – Japan agreement: European businesses push for ratification
All Europe’s business organizations have written to the European parliament for them to proceed with the approval of JEFTA, the free trade agreement concluded between Japan and the EU, so that it may be ratified as soon as possible.
Japan is the world’s third economy after the United States and China with more than 127 million inhabitants and is the EU’s second major commercial partner in Asia after China. In the agri-food sector, it is the fourth European market outside the EU after the USA, China and Switzerland. Roughly 10% of Japanese trade is with the EU that is in second place amongst its commercial partners.
This market, therefore, represents enormous potential for our businesses; already today (with elevated duties and different commercial procedures and commercial laws from international ones and other non-tariff barriers), based upon data published by the EU, European businesses annually export products for 58 billion euros and services for 28 billion euros.
The European commission has put at one billion euros per year the value of the tariffs paid by exporting businesses that with the new agreement law would be almost totally saved, and in particular with regard to the agri-food sector it foresees an increase in exports from the EU to Japan from between 170% to 180% with a growth of 10 billion euros with the application of the agreement.