European Parliament Committee on International Trade supports a Free Trade Agreement with Japan as long as EU's strategic interests are respected

The Committee on International Trade of the European Parliament (INTA) has given its green light to the opening of negotiations for a Free Trade Agreement with Japan. However, MEPs stressed that these negotiations will be subject to the removal of Japan's existing barriers to trade in some crucial sectors for the European industry.

Being aware of its significant potential for trade growth, the Parliament's Committee on International Trade has recommended the opening of negotiations for a Free Trade Agreement with Japan. When in July 2012, the European Commission asked the Council to open negotiations with Japan, special attention was drawn to the fact that such treaty could lead to an increase in the EU's gross domestic product (GDP) of about 1% and to an increase in exports to Japan by one third of its current volume.

The non-binding resolution issued by the International Trade Committee of the European Parliament backs the opening of negotiations with Japan. However, the resolution also states that in order to these negotiations to succeed Japan would need to work on teh removal of trade barriers in sectors such as car manufacturing. MEPs warn that in the event that these barriers are not removed, negotiations should be suspended.

While acknowledging that certain trade barriers and legislation which benefits local firms towards exporters are more complex to eliminate than tariff barriers, these this type of obstacles are precisely those which discourage European companies to exploit business opportunities with Japan. Such issues have been addressed in areas such as public procurement in which European companies have greater difficulty in accessing procurement in Japan.

Restrictions on access to the Japanese market in sectors such as electronics, postal services and public procurement in the rail sector, as well as restrictions in the automotive sector which remain one of the most relevant difficulty, are the main issues identified by the Parliamentary Comittee for the Treaty to be successful. Committee's resolution will be debated by the House In October, after which the Council will decide on the opening of negotiations.