Japan, EU Reach Broad Free Trade Deal
Japan and the European Union (EU) held summit talks in Brussels July 6, 2017, and concluded an economic partnership agreement (EPA). Trade rules such as facilitation of customs clearance procedures and protection of intellectual property rights also have been unified under the agreement. Japan will align with the Europeans side to make the agreement effective in 2019 and will promote the importance of free trade to the world.
Source: Nikkei Asian Review July 7, 2017: Read The Story
PSR Analysis: Unlike countries such as the United States and China that can develop power games with the huge market size of their country as the background, an environment where fair competition is based on rules is indispensable for Japan. Therefore, Japan's basic trade strategy is to demonstrate leadership in making rules. For Japan, which was forced to review the strategy of international trade following the withdrawal from the TPP by the United States, the framework agreement of this EPA is progress for Japan..
It is also of great significance that such an agreement could be achieved in the course of global protectionism. Although it will take time to eliminate tariffs on the automobile itself, most of the customs duties on automobile parts will be eliminated immediately after the agreement comes into force. This should be a great opportunity for parts suppliers to expand thier network. As the automobile industry is entering a major turning point worldwide with connected cars and electric vehicles, it is difficult to survive only by focusing on the domestic market. The EPA will be a good opportunity for automobile OEMs. PSR