EU-Japan free trade agreement

In July 2017, an agreement in principle was reached on the EU-Japan Free Trade Agreement (JEFTA) and on Dec. 8, 2017, the negotiations were officially concluded. Jean-Claude Juncker, the then President of the European Commission, and Japanese Prime Minister Shinzo Abe reported in a joint communiqué that after four years of intensive negotiations, they have reached a free trade agreement. 'In addition to its considerable economic value, this agreement is also of strategic importance,' both leaders said in a communique. 'It sends a clear signal to the rest of the world that the European Union and Japan are committed to a global economy that functions on the basis of free, open and fair markets with clear and transparent rules.'

JEFTA is one of the largest trade agreements ever concluded by the European Union, covering a market of more than 600 million people. Customs tariffs cost European companies 1 billion euros annually. The agreement could increase European exports to Japan by 16 to 24 percent. During the negotiations, the European Commission focused on increasing agricultural access to Japan. Among other things, Europe removes import tariffs on Japanese cars. However, this will only happen after a seven-year transition period. Moreover, both parties will apply the same standards for safety and the environment. This avoids cars having to be tested and certified multiple times.

If you have questions about what this means for your flow of goods? Please contact:

Kees Neele
Phone : +31 88 9964080
E-Mail kees.neele@neelevat.com
Manager Customs & Fiscal Representation
Neele-Vat Logistics BV (Customs Department)