Japan and the European Union (EU) announced on March 25 that the two economies had decided to launch formal trade talks. European Commission (EC) President Jose Manuel Barroso, European Council President Herman Van Rompuy and Japanese Prime Minister Shinzo Abe stated that they have "decided to launch negotiations for an agreement covering political, global and sectoral cooperation and an Economic Partnership Agreement (EPA)/Free Trade Agreement (FTA)." They also welcomed the start of the negotiations in April and expressed their commitment to the earliest possible conclusion of these two agreements.
The Japan Automobile Manufacturers Association (JAMA) welcomed the launch of the negotiations stating that "The Japanese automobile industry's longstanding presence in Europe reflects its significant investment in the region over many years." JAMA noted that a Japan-EU EPA/FTA will provide a crucial opportunity in further promoting trade, investment and industrial cooperation between the two partners, and leading consequently to the growth and expansion of the automobile industry in both Japan and Europe.
On the other hand, Ivan Hodac, general secretary of the European Automobile Manufacturers Association (ACEA), stated, "We are strongly in favour of FTAs that are balanced and that provide real opportunities for export." However, he added that the ACEA still has some reservations about an FTA with Japan and stresses the need for Japan to accelerate the harmonization of its vehicle standards with UN regulations, explaining that Japan currently retains unique national requirements which add to the cost of imports, without bringing benefits to the consumer.
"Our industry requests that an EU type-approved vehicle can be sold in Japan without the need for further certification or costly modification. This is not the case today," said Mr. Hodac.
The ACEA has suggested the EC should set challenging, but realistic, targets for the first year of the negotiations, noting that it will work constructively with the EC and other relevant stakeholders to ensure that Japan fulfils its commitments to eliminate non-tariff barriers in the automotive sector.