Japan, EU conclude EPA talks

December 9, 2017

Tokyo- Japan and the European Union said Friday that they have concluded talks on an economic partnership agreement, a deal that will create a huge free trade zone covering some 30 pct of global gross domestic product.

The two sides agreed to exclude investment protection standards and investment protection dispute resolution, the most challenging issue in the negotiations, from the EPA in a bid to put the pact into force in 2019.

Japanese Prime Minister Shinzo Abe and European Commission President Jean-Claude Juncker confirmed the conclusion of the EPA talks in a telephone conversation.

"Japan and the EU will join hands to create an economic zone based on free and fair rules," Abe told reporters after the phone talks with Juncker.

The EPA is designed not only to spur economic growth by promoting trade and investment, but also to stem the spread of trade protectionism.

Japan and the EU announced the conclusion of the EPA talks after their chief negotiators met in Brussels this week. The two sides reached a broad agreement in July after launching the talks in April 2013.

Japan and the EU plan to sign the EPA as early as summer next year. The two sides aim to conclude a separate pact on investment.

Under the EPA, Japan will introduce low-tariff import quotas for certain EU products, such as Camembert cheese, and fully abolish the tariffs in the 16th year. EU tariffs on Japanese vehicles will be scrapped over seven years.

Japan is expected to abolish tariffs eventually on around 95 pct of overall trade items under the EPA, the similar liberalization rate under the Trans-Pacific Partnership multilateral free trade deal. Jiji Press