EU: Economic partnership agreement with Japan | KPMG | GLOBAL
close
Share with your friends

EU: Economic partnership agreement negotiations with Japan finalized

EU: Economic partnership agreement with Japan

Officials with the EU and Japan on 8 December 2017 announced the successful conclusion of negotiations regarding an economic partnership agreement—one of the largest bilateral trade agreement negotiated by the EU.

1000

Related content

Elimination of customs duties

Upon the agreement’s entry into force, tariffs on more than 90% of exports from the EU to Japan will be eliminated. After full implementation, customs duties on 97% of imported goods from the EU will be eliminated. In total, the elimination and reduction of tariffs will save EU exporters approximately €1 billion in customs duties each year.

The goods for which the customs duties have been eliminated or reduced include major export products such as pork, beef, wine, and cheeses. In addition to measures addressing customs duties, the agreement also provides for protection on the Japanese market of more than 200 “geographical indications” of EU products.

Non-tariff barriers

For many EU companies, the non-tariff measures under the agreement will allow for simplified access to a highly regulated Japanese market. The EU and Japan have committed to aligning themselves to the same or similar international standards on product safety and quality regarding products including motor vehicles, medical devices, pharmaceuticals, and cosmetics. The agreement also addresses sanitary and phytosanitary measures for products exported to Japan. The EU and Japan have agreed to simplify processes so that exporters do not have to deal with unnecessarily complex approval and clearance processes, but without lowering safety standards.

What’s next?

The conclusion of the negotiations is an important step, but not the final stage of the process. The EU and Japan will now start the process for legal verification of the text (known as “legal scrubbing”). After the legal scrubbing, the text will be translated into the 23 official languages of the EU, as well as into Japanese. The European Commission will then submit the agreement for the approval of the European Parliament and EU Member States, with an aim for the agreement’s entry into force in early 2019.

 

Read a December 2017 report prepared by the KPMG member firm in the Netherlands

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.

Connect with us

 

Request for proposal

 

Submit