At the 20th EU-Japan Summit held in Brussels on May 28, a decision was reached to start the process for negotiations on a free trade/economic partnership agreement between Japan and the European Union. While the Japan Automobile Manufacturers Association (JAMA) has welcomed the decision, the European Automobile Manufacturers Association (ACEA) has stated that the EU has not given an unconditional green light for a free trade agreement (FTA) with Japan, as the merits, conditions and consequences of such an agreement have not been sufficiently established and assessed at present.
As regards the ‘scoping exercise' that was ordered by the EU-Japan Summit in Brussels, ACEA indicated that this task should include the full identification of non-tariff barriers to trade as well as of the firm commitment to eliminate them and take any other relevant measures to achieve the opening of the Japanese market. Non-tariff barriers have led foreign car manufacturers to have a market share of less than five percent in Japan, the world's third largest economy. ACEA also stated that the scoping exercise must also involve a complete assessment of the impact of a trade agreement on manufacturing and employment in the EU.
"ACEA supports trade liberalization first and foremost within the multilateral framework of the World Trade Organization (WTO), particularly with regard to the elimination of tariffs," said Ivan Hodac, secretary general of ACEA. "To facilitate market access around the globe, it is, furthermore, essential to speed up the further harmonization of vehicle standards and certification. ACEA welcomes the Japanese initiative to launch a discussion in Geneva of a system for International Whole Vehicle Type Approval."
For its part, JAMA anticipates that a Japan-EU economic partnership agreement will enhance trade and investment between Japan and the EU and thereby promote further development of the auto industry on both sides.