In the past, European companies have faced trade barriers by exporting to Japan, which sometimes made them more difficult to compete with. According to customs data, Japan exported more than 1.5 trillion yen ($14.1 billion) to the UK and imported 887 billion yen from the UK in 2019. The new trade pact is particularly good for Japan because it will avoid raising tariffs. The EU and Japan meet regularly to discuss issues and best practices in implementing the agreement. TOKYO — Japan and Britain will sign a free trade pact, possibly until September, the Nikkei has learned. Tamotsu Nakamura and Maria Senius attended a meeting of the Von Bruegel conference on international trade and the EU-Japan agreement. Six important agreements have been concluded between the EU and Japan to date. Preferential tariffs under the Japan-EU EPA apply to trade between Japan and the UK until December. Higher tariffs will come into effect from next year in the absence of a new trade agreement between Japan and the UNITED Kingdom, which would hurt Japanese exporters. This will be the UK`s first trade agreement with a major country since leaving the EU and will serve as a model for negotiations with other countries. It also includes obligations to comply with multilateral agreements and to ratify international labour organization (ILO) conventions.

Between 2009 and 2019, the EU`s trade deficit with Japan increased from 18 billion euros in 2009 to 2 billion euros in 2019. This agreement opens up important economic opportunities and creates an area of nearly 600 million people representing nearly 30% of the world`s GDP. The EU has negotiated an economic partnership agreement with Japan. In the services sector with Japan, the EU recorded a surplus of 13 billion euros in 2018. Doing business and investing in Japan can be difficult for European companies[14] and there have been some trade disputes between the two parties. However, the slowdown in the Japanese economy has encouraged them to become more open to business and investment in the EU. [2] In the work of reducing trade barriers, the emphasis is on opening up investment flows. [1] The trade nature of this agreement is at odds with the many challenges that the global multilateral system has posed recently and which are better represented by the tariffs and counter-rights imposed on each other by the United States and China. A number of informal bilateral dialogues and other specific initiatives have been put in place to support EU-Japan trade relations: total trade in services between the EU and Japan accounts for about 35% of total EU-Japan merchandise trade.

At the same time, EU services exports to Japan account for about 50% of EU merchandise exports to Japan. In Japan, it can be difficult for European companies to do business or invest because of the specifics of Japanese society and the Japanese economy. Between 2009 and 2011, trade in trade in commercial services between the two partners increased, with the EU maintaining a stable surplus and Japan`s share of total EU imports also remained stable at just over 3%. [10] Eu-Japan relations are anchored in two documents: the 1991 Joint Declaration and the 2001 EU-Japan Action Plan.