Representatives of Japan and the European Union on 6 July 2017 reached an “agreement in principle” on the main elements of the Japan-EU economic partnership agreement.
Both sides have made a commitment to eliminate customs tariffs on industrial goods. Particularly, the agreement could have a significant effect on the apparel industry from a tariff reduction perspective. At present, Japanese tariffs on clothes are 10% (on average). The Japan-EU agreement would be expected to remove tariffs on textiles and textile articles completely once the agreement enters into force. Additionally, tariffs on leather and footwear would be phased out over a period of 10 or 15 years.
There are expectations that a Japan-EU economic partnership agreement would enter into force at the beginning of 2019.
For more information, contact a professional with KPMG’s Trade & Customs practice in Japan:
Masaharu Umetsuji | +81 3 6229 8070 | firstname.lastname@example.org
Kozu Takayuki | +81 3 6229 8205 | email@example.com
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.