Entry into force on 1 February 2019
On 17 July 2018 the Japan-EU Free Trade Agreement, one of the most significant trade agreements ever concluded by the EU, has been signed.
Entered into force on 1 February 2019, it encompasses more than 630 million people and represents approximately one third of global GDP.
Practically, JEFTA provides for the total abolition of customs duties on 90% of exported products upon its entry into force, as for example on wine and cheese exports to Japan (which for the moment are respectively taxed at 15% and 30%). For other products, customs duties will be progressively removed to reach an overall of 97% less taxes on exported goods.
The agreement will also apply the elimination of import quotas, free access for European companies to participate in bids for procurement tenders in Japan, the recognition and protection of more than 200 European Geographical Indications (GIs) and also the harmonisation of European and Japanese standards.
The JEFTA is an Economic Partnership Agreement and, on the same basis as the other EPAs, the REX regulations will be applied to European exporters in order to let customers benefit from tariff preferences. Imports to the EU will benefit from tariff reductions based on the statement of origin issued by the Japanese exporter.
As the Authorized Economic Operator, Balguerie is your partner to accompany and advise you fully on your freight forwarding operations for this booming market.