WT/REG396/M/1  
 
15 November 2019 
(19-7808) Page: 1/6 
Committee on Regional Trade Agreements  
Ninety -fifth Session    
 
 
ECONOMIC PARTNERSHIP  AGREEMENT BETWEEN THE EUROPEAN UNION  AND JAPAN  
(GOODS AND SERVICES ) 
NOTE ON THE MEETING OF 8 NOVEMBER  2019 
Chairm an: Ambassador Carlos Mario Foradori  (Argentina)  
1.1.  The 9 5th Session of the Committee on Regional Trade Agreements (hereinafter  'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/ 20/Rev.1  dated 21 October 2019.  
1.2.  Under Agenda Item F.II of the Session, the CRTA considered the  Economic Partnership 
agreement  between the European Union  and Japan (Goods and Services ). (hereinafter  "the 
Agreement").  
1.3.  The Chairman  noted that t he Agreement had entered into force on 1 February 2019. It had 
been notified to the WTO by the Parties on 14 January 2019  under Article  XXIV:7(a) of the 
GATT  1994 and the Understanding on the Interpretation of Article  XXIV of GATT 1994 as an 
Agreement establishing a free trade area (document  WT/REG 396/N/1)  and under 
GATS  Article V:7(a) as an Agreement providing for the liberalization of trade in services within the 
meaning of Article V of the GATS (document S/C/N/ 921). The text of the Agreement was available, 
together with its Annexes, on the Parties' official websites.  The Factual Presentation on the goods  
and services  aspects (document  WT/REG3 96/1 dated 12 August 2019 and questions and replies 
(document WT/REG3 96/2 dated 14 October 2019)  had been distributed.  
1.4.  The representative of the European Union  thanked the Chair and welcomed the consideration 
of the Agreement in the CRTA . He thank ed the Members for their interest in the consideration of the 
Agreement. The European Union had received many questions to which it had responded in writing.  
1.5.  Before ent ering into the substance of the Agreement's commitments and disciplines he made  
a few introductory remarks recalling the broader economic and political context within which to 
situate the Agreement . The Agreement was one of the most important and comprehen sive trade 
agreements ever concluded  by the European Union  and Japan . It create d an economic area covering 
600 million people and approximately 30% of world GDP. It open ed enormous opportunities for trade 
and investment thus contributing to the strengtheni ng of their economies and societies. The 
Agreement  also reinforce d the economic cooperation between the Parties and the competitiveness 
of two mature but innovative economies.  
1.6.  Japan was the European Union's  second -biggest trading partner in Asia after Chin a, and the 
European Union was Japan's  third biggest trad ing partner. In 2018, according to EU statistics, the 
value of trade in goods between the E uropean Union and Japan was EUR 135 billion and trade in 
services amounted to EUR 53.5 billion. Since the entry into force of the Agreement on 1 February 
2019, overall trade between the two economies was on a positive trend. The E uropean Union 
expect ed that the effects of the Agreement would be better evaluated once the full data for 2019 
was available.  
1.7.  At a moment of crisis in international trade, when more than ever it was essential to defend 
the integrity of a rule s-based trading system, the Agreement was a symbol of the importance of 
cooperation, common rules and predictability for the development of economic relations. The 
Agreement was fully in line with Article XXIV of GATT, which provide d an exception from the most -
favoured nation treatment for free trade agreements that liberali zed substantially all trade.  WT/REG396/M/1  
 
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  1.8.  The European Union and Japan share d some basic principles governing their respective 
regulatory approaches. For example, they had decided to liberalise their services while fully 
safeguarding their public services. They had agreed to liberalise most of trade in agricultural products 
while ensuring the highest levels of consumer protection. They had also agree d on the importance 
of promot ing a sustainable approach in trade by defending labour rights and protecting the 
environment,  as well as fighting against climate change.  
1.9.  Thus, beyond its considerable economic value, the Agreement was also of strategic importance.  
It demonstrate d that the E uropean Union and Japan were committed to keeping the world economy 
working based on open, fair and well -regulated markets, escaping both uncontrolled liberal ization  
and the temptation of protectionism, old or new, and promoting their shared values and principles 
globally.  
1.10.   The representative of Japan  thank ed the Committee for  the opportuni ty to present the 
important elements of the Agreement under  review and  consideration  by WTO Members . He also 
thanked the Secretariat for its preparation  of the factual presentation . 
1.11.   For Japan, the Agreement was an important pillar of Abenomics ' growth stra tegy. With regard 
to the Japanese economy, the Agreement was estimated to increase real GDP by approximately 1% 
(approximately JPY 5 trillion) and employment by approximately 0.5% (approximately 290,000 
jobs). Th e Agreement represent ed a model of economic order in the 21st century based on free and 
fair rules and  had create d one of the largest free and advanced economic zones in the world with 
approximately 30% of world GDP and 40% of world trade.  
1.12.   The Agreement me t the expectations of businesses both in Jap an and the European Union . 
By concluding the Agreement, the Parties had  demonstrate d to the world their firm political will to 
keep the flag of free and fair trade waving high and to advance free trade.  
1.13.   The representative of the European Union  said that the Agreement had been signed on 17 
July 2018 and it had entered into force on 1 February 2019. As a so -called "new generation " FTA, 
the Agreement had gone  beyond trade in goods and cover ed also trade in services, the protection 
of intellectual p roperty, investment liberal ization , Government procurement, customs and trade 
facilitation, horizontal rules on technical regulations and sanitary and phytosanitary matters, 
competition (including subsidies and disciplines for state -owned enterprises) and regulatory 
cooperation.  
1.14.   The Agreement contain ed specific commitments on customs duty reduction s as well as access 
to services markets, and it furthermore include d detailed rules pertaining to technical regulations in 
the sectors of wine and motor vehicles .  
1.15.   For the first time in an EU agreement, there was a specific chapter on corporate governance. 
Also, for the first time in EU agreements , there was one chapter that specifically envisage d a 
particular focus on promoting participation in bilateral trade of  small and medium -sized enterprises. 
The corporate governance chapter in the Agreement  was also the first in Japan's agreements . The 
Agreement also contain ed one specific chapter that set out a framework for bilateral cooperation in 
agriculture.  
1.16.   The Agreement emphasi zed the importance of ensuring the mutual supportiveness of trade, 
labour and environmental practices, through a dedicated set of rules on trade and sustainable 
development. As an overarching them e, the Agreement recogni zed the importance of overriding 
public policy goals and, consequently, it had preserve d the Governments ' right to regulate in the 
public interest.  
1.17.   The Agreement substantially liberali zed trade. At the end of the staging period , Japan would 
apply  no import duties on 94% of its tariff lines for imports from the European Union (based on 
Japan 's calculation s), while an additional 3% of tariff lines would be partly liberali zed through quotas 
and tariff reductions (in agriculture). The o verall level of liberal ization  by the European Union was 
set at 99%, with 96% of its tariff lines having been liberalized at entry into force. In terms of import 
value , the European Union had liberali zed 75% at entry into force . The percentage of imports 
liberalized would rise to close to 100%  over 15 years . Trade in automobiles would be fully liberali zed WT/REG396/M/1  
 
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  in seven  years ; the period for the liberalization of car parts would vary from entry into force to seven  
years.   
1.18.   As far as agricultural exports  were concerned, Japan was the European Union 's fourth biggest 
market.  Over time, around 82% of tariff lines concerning agri -food products exported from the 
European Union to Japan would be allowed to enter duty -free. Imports of wines as well as most 
other alco holic beverages had been liberali zed at entry into force. More than 200 G eographical 
Indications (hereinafter GIs)  were protected under the Agreement.  For beef, pork, dairy and cheese, 
fisheries and forestry there was a considerable improvement in market a ccess conditions . 
1.19.   On industrial products,  full liberal ization , in some cases with transition periods, was agreed 
for all sectors, including those with relatively high tariffs or high volumes such as leather and 
footwear, chemicals, plastics, cosmetics and textiles and clothing.  That was without any prejudice 
to the rules and regulations that the products in question need ed to satisfy in the respective import 
market, such as those relating to technical, sanitary or phytosanitary rules for the security and 
protection of consumers or the environment, including food safety and labelling requirements.  
1.20.   The representative of Japan  said that, r egarding export s of Japanese industrial products to 
the European Union , not only big firms but also small and medium -sized enterprises supplying 
manufacture rs with parts could benefit from the Agreement.   
1.21.   As far as agricultural exports  were concerned, EU customs duties o n almost all products , in 
particular beef, tea, wine and fisheries products , had been eliminate d since 1  February 2019. The 
oenological practices for Japan ese wine were to be recogni zed and all custom s duties on Japanese 
alcoholic beverages were  to be eliminated  over time . Protection of GIs on agricultural products and 
alcoholic beverages, including  several Japanese shochu and sake, but also Kobe beef , Yubari Melon , 
Shimonoseki fuku and Nishio matcha and several other s, had been ensured at entry into force by 
the European Union .  
1.22.   The representative of the European Union  said that o n Government procurement , in terms of 
market access, the Agreement  had expand ed the coverage of listed entities and sectors compared 
to the revised GPA. Japan had accepted to commit  to non-discrimination for procurement by core 
cities ( of approximately 300 ,000 to 500,000 people , representing around 15% of Japan 's population) 
and the EU had agreed to commitments at sub -central level. More specifically, in the transport 
sector, a shared high level of safety requirements and guarantees had allowed Japan to waive  the 
operational safety clause for EU suppliers in Japan, with a transition period of one year after the 
entry into force of the Agreement. In return, the EU had reciprocated by opening parts of its railway s 
market to Japanese suppliers.  
1.23.   On non-tariff measures , the commitments agreed upon would allow Japan and the European 
Union to strengthen the ir joint commitment to international standards as the best basis for even 
closer cross -sector al cooperation in the future. The result s in the automotive s ector, wine and shochu 
were of particular relevance. For example, the Agreement had identifie d a list of UNECE regulations 
that both Parties commit ted to apply, de facto  aligning domestic standards to internationally 
recogni zed ones. That prove d that the d irection taken through the Agreement by the Parties was a 
strategic, long -term and irreversible one.  
1.24.   On services , the Agreement include d strong commitments. The negotiations had started from 
the basis of highly liberali zed services markets but had further  improved and secured access to their 
respective markets, in particular in the telecom munication s and financial services sector s. The 
Agreement contain ed a number of provisions that appl ied horizontally to all trade in services, such 
as the provision reaff irming the Parties ' right to regulate. It maintain ed the Governments ' right to 
keep public services and it would not force them to privatise or deregulate any public service at the 
national or local level.   
1.25.   The Agreement include d advanced provisions on the movement of people for business 
purposes (mode 4)  covering all traditional categories such as intra -corporate transferees, business 
visitors for establishment purposes, contractual service suppliers and independent professionals , as 
well as other categories such as short -term business visitors and investors. The Agreement include d 
an Annex with procedural commitments concerning the entry of service providers in the territory of 
the Parties  covering issues such as fees or processi ng times for entry applications. Japan and the WT/REG396/M/1  
 
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  European Union allowed the spouses and children to accompany those who were either service 
suppliers or who work ed for a service supplier. That was a practical way to support business and 
business operations, facilitating investment.  
1.26.   The representative of Japan  said that the Agreement set rules for the creation of an 
environment of trust and confidence for the promotion of E-commerce. It contain ed provisions 
regarding the prohibition of customs duties on elect ronic transmissions  and of forced disclosure of 
source code, electronic authentication and electronic signature.  
1.27.   The representative of the European Union  said that, o n intellectual property and GIs,  the 
Agreement include d strong commitments, based on high standards of protection and enforcement 
of intellectual property building on the TRIPS agreement. The Agreement contain ed provisions 
regarding trade secrets, undisclosed test data, trademarks, copyright and related rights, patents, 
industrial designs, GIs, new varieties of plants, and civil enforcement provisions. As regards GIs, the 
Agreement recogni zed their special status and offer ed protection to more than 200 European GIs in 
Japan and more than 50 Japanese GIs in the European Union . 
1.28.   The Agreement include d key elements on sustainable development in line with other recent 
trade agreements. It contain ed commitment s on respect for fundamental rights at work and effective 
implementation of labour standards of the International Labour Organisat ion and international 
environmental agreements, including the UN Framework Convention on Climate Change, as well as 
the Paris Agreement. The Parties had commit ted not to lower domestic labour and environmental 
laws to attract trade and investment. They had also commit ted to the conservation and sustainable 
management of natural resources, and to addressing biodiversity, forestry, and fisheries issues. The 
Agreement encourage d corporate social responsibility and other trade and investment practices 
supportin g sustainable development.  It had  set up mechanisms for facilitating civil society 
involvement on matters pertaining to trade and sustainable development. It also  had a dedicated 
binding mechanism for resolving disputes in that area which include d governme nt consultations and 
recourse to an independent panel of experts.  
1.29.   Chapter 18 of the Agreement define d a framework for regulatory cooperation between the 
European Union and Japan. It buil t on regulatory cooperation, including under existing international 
agreements or arrangements between the Parties . The Regulatory Cooperation Committee 
established under the Agreement had been  conceived as an ordinary bilateral body to help streamline 
existing and future regulatory cooperation work, which would be conducted  to a significant degree 
also within other committees or, if need be, through ad hoc working groups.  
1.30.   The Agreement contain ed chapters on a range of important issues, including competition, 
subsidiaries  and State-to-State dispute settlement. In addition, on 17 July 2018, the Parties had 
agreed to recognise each other's data protection systems as adequate, allowing personal data to be 
transferred safely between the m. The mutual adequacy arrangement  had created the world 's largest 
area of safe transfers of data based on a high level of protection and guarantees for personal data. 
The Parties  had started to apply the mutual adequacy arrangement as of 23 January 2019.  
1.31.   The Joint Committee was the institutional body establish ed under the Agreement responsible 
for monitoring and facilitating the implementation of the Agreement. It was to meet annually, 
alternat ing between the European Union and Japan, and  was co-chaired by the Minister of Foreign 
Affairs of Japan and the Trade Commissioner of the European Union . The Joint Committee also 
supervi sed ten specialised committees, two working groups and other bodies established under the 
Agreement. It had met in Tokyo on 10 April 2019 for the first time and had adopt ed rules of 
proced ure for the Joint Committee and the dispute settlement mechanism of the Agreement, two 
key procedural steps to ensure smooth and efficient implementation of the Agreement. Five 
specialised committees and working group and other bodies had met and others would be meeting 
in the following weeks and months.  
1.32.   Japan and the European Union were taking a transparent approach to the governance of the 
Agreement, with finali zed agendas and joint minutes of  committees which would be made available 
to the public. Such an approach would allow all stakeholders and interested parties to follow the 
work of the committees.  WT/REG396/M/1  
 
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  1.33.   The Parties needed to focus their efforts on ensuring that the Agreement was fully 
implemented and companies and citizens in both Parties co uld benefit from the opportunities created 
by it. Expectations were high and the Parties had therefore committed appropriate administrative 
resources with the aim to pursue their bilateral cooperation and to maintain  a permanent political 
overview. It was crucial to ensure that the Agreement was a success.  
1.34.   The representative of Japan  thanked the Committee for giving him the opportunity to submit 
the report on the Agreement. The Agreement had provided a foundation for further growth in 
bilateral trade and in vestment as well as for strengthening economic ties between Japan and the 
European Union . He was confident that the implementation of the Agreement would contribute to 
further trade liberali zation and strengthen the multilateral trading system of the WTO.  
1.35.   The representative of the European Union  said that , by concluding the Agreement,  the 
European Union and Japan  had demonstrated to the world that it was possible to agree on 
comprehensive trade liberal ization , reach a win -win result and deliver significant benefits for 
businesses and consumers.  It had been  only nine months since its entry into force  and it was still 
early to make any conclusive assessment of concrete results of the Agreement in terms of trade and 
investment flows. It was neverthe less already possible to not e some concrete positive movements 
in sectors where important liberal ization  had already taken place, such as food, beverages and 
transport equipment.  During presentations of the Agreement to business es, satisfaction on the init ial 
results of the Agreement had been noted . Finally, the European Union and Japan look ed forward to 
a fruitful discussion and would endeavour to answer all Members' questions in addition to the written 
answers  already provided . 
1.36.   The representative of Switz erland  thank ed the European Union and Japan for having provided 
a comprehensive presentation on the content and the context of the Agreement. One could get a 
clear sense that the Agreement was extensive and forward  looking.  The level of ambition on trade 
liberalization for industrial goods was high. The entry into force of the Agreement had given rise to 
an immediate elimination of tariffs for an impressive amount of tariff lines.   
1.37.   The excellent report produced by the Secretariat  showed that, at entr y into force, the 
European Union had brought down to zero more tariff lines than Japan  making a larger portion of its 
tariff duty free. Whether that mean t that the value of Japan's imports from the E uropean Union  on 
a duty-free basis would continue to be h igher than the current total imports of the European Union 
from Japan remain ed to be seen.  
1.38.   He took note of the arrangement  for rules of origin . A general scrutiny of the trade 
liberalization for services seem ed to indicate that the EU had been more ambiti ous by including more 
improvements as compared to previous commitments inscribed within the GATS. The general 
environment for the provision of services was meant to be enhanced by an array of provisions aimed 
at generating more transparency and clarity in the field of domestic regulations.  He highlight ed that 
fact not least because  of similar work being done in the WTO by an ever -increasing group of Members 
dedicated to modernizing the rule book.  
1.39.   Switzerland had submitted questions related to competition p olicy and he thank ed the Parties 
for the ir replies. Finally, he commend ed the European Union and Japan for having integrated a far -
reaching chapter on trade and sustainable development. Switzerland was of the view that the 
interlinkage between  trade and su stainable development was becoming ever important – a fact 
which ought to be reflected in trade agreements as well.  
1.40.   The representative of Canada  thanked the Parties to both Agreements under consideration 
for their presentations  and all the effort that had gone into the responses to Canada's questions. He 
thank ed the Secretariat for its work that had helped the process run smoothly.  
1.41.   The representative of the United States  thanked Japan and the European Union for their 
presentatio ns and for participating in the valuable transparency exercise.  
1.42.   The Chairman  noted that the  consideration of the Goods and Services Aspects of the Economic 
Partnership Agreement between the European Union and Japan had allowed the Committee to clarify 
a number of questions and it could now conclude oral discussion of th e RTA in accordance with 
paragraph 11 of the Transparency Mechanism. If any delegations wish ed to ask follow up questions WT/REG396/M/1  
 
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  they were invited to forward submissions in writing to the Secretaria t by 14 November 2019. Parties 
were asked to submit replies in writing by no later than 28 November 2019. In accordance with 
paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of the 
meeting w ould be circulated promptly,  in all WTO official languages, and would be made available 
on the WTO website.  
1.43.   The Committee took note  of the comments made.  
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