What does the JEFTA agreement mean?
The Japan-EU Free Trade Agreement,consideredthe world’s largest trade agreement, enters into force on Friday 1 February 2019.
The agreement, negotiated in 2013, creates the world’s largest free trade area. It covers nearly 635 million consumers and more than a third of global GDP.
Japan is the EU’s 6th largest economic partner, conversely, the EU is Japan’s third largest economic partner. Trade between the two parties accounts for 36.9 of international trade.
What are the advantages of JEFTA for Europeans and Japanese?
The European Union estimates that theremoval of tariff and non-tariff barriers will increase total exports to Japan by a quarter, and the removal of tariffs will save the EU EUR 1 billion. Thanks to this agreement, European companies benefit from enhanced international standards and the appellations of origin of certain European products will be protected. Tokyo is committed to recognizing 205 geographical indications such as Roquefort or Ardenneham.
The “made in France” enjoys an excellent reputation in Japan,this represents a real opportunity for French SMEs wishing to conquer the Japanese market with high quality products that correspond to the expectations of Consumers.
Prices for many products will thus fall due to the reduction in tariffs that may be around -35 for some products.
Japan expects its GDP to rise by 1 thanks to the disappearance of European tariffs. The country hopes for economic benefits for its automotive industry. The phasing out of tariffs on the import of automobiles and the immediate abolition of tariffs on spare parts will facilitate industrial cooperation in this sector.
This agreement also allows for greater reciprocity in access to public procurement, which will open up opportunities for many European companies,particularly in the rail sector.
It also includes commitments to respect multilateral agreements and ratify international labour organization conventions.
What impact does it have for expatriates in Japan and those who wish to live in Japan?
If you are thinking of expanding your business to Japan,this agreement is a real opportunity for you because it implies an increase in trade between the two continents and therefore the need to have japan European cultural skills and in Europe with Japanese skills. In your plans to emigrate to Japan, think about your visas to Japan of course and compare the international health insurance essentials abroad.