The new politics of trade: EU-Japan

Abstract

Unlike the European Union’s (EU) negotiations with the US and Canada, the Japan-EU Economic Partnership Agreement (EPA) negotiations have encountered few critics from civil society organisations (CSO) and therefore became an ‘exceptional’ case for the EU. There are four reasons. The first is that the main focus of the EPA is still on ‘old’ issues such as tariff reduction of motorcars, electronics and agricultural products. The second is the relative lack of innovative proposals compared to the American and Canadian case. The third is Japan’s lack of ability and competitiveness to export its regulations, making Japan’s attitude relatively defensive. Finally, the modest scale of Japan-EU trade compared to transatlantic trade. These four reasons made the level of contestation relatively low, but this has not led to an acceleration of concluding the EPA. Uncertainty caused by Trump and the Brexit referendum have made Japan’s trade policy complicated and unpredictable.

Keywords:

• European Union (European Communities)
• EPA (economic partnership agreement)
• Japan

Acknowledgments

My thanks go to Finn Laursen, Christilla Roederer-Rynning, Alasdair Young, Kurt Hübner, Michelle Egan, Saori Katada, Toshiro Tanaka, Alexander Mayhew, the anonymous referees, and all participants of the Workshop, ‘Writing The Rules Of 21st-Century Trade,’ University of Southern Denmark, Odense, 10–11 October 2016, for their helpful advices. The usual disclaimer applies.

Notes

1. Questionnaire answered by the BEUC, the European Consumer Organisation, on 23 May 2017. The BEUC confirms that, while they have kept close watch on the Japan-EU EPA negotiations, they do not have a position yet. The BEUC will only define it after careful analysis of the final agreement and its implications for EU consumers. Their position will depend on whether or not the final agreement will maintain the existing levels of consumer protection, do not prevent them from being enhanced in the future and deliver tangible benefits to consumers.

2. The Action Plan covered the years up to 2010, and the Japan-EU EPA (or SPA/FTA according to the EU Delegation in Tokyo) are a follow-up, this time as a binding agreement.

3. In the recent update of the 7th edition (2015), Woolcock points out the expansion of the European Commission’s competence in dealing trade negotiations.

4. <http://www.jetro.go.jp/theme/wto-fta/basic/> Accessed on 26 February 2015.

5. Although no agreement has been reached, FTA among the three countries are currently negotiated.

6. <http://ec.europa.eu/cgi-bin/etal.pl> Accessed on 26 February 2015.

7. <http://www.mofa.go.jp/mofaj/area/mexico/keizai_goui.html> Accessed on 2 October 2014.

8. <http://www.mofa.go.jp/mofaj/area/mexico/keizai_noukou.html> Accessed on 26 February 2015.

9. <http://www.mofa.go.jp/mofaj/gaiko/fta/j_chile/index.html> Accessed on 2 October 2014.

10. <http://www.mofa.go.jp/mofaj/gaiko/fta/j_peru/index.html> Accessed on 2 October 2014.

11. Jiji Tsushin, 23 September 2016, accessed on 3 October 2016.

<http://www.jiji.com/jc/article?k=2016092300590&g=tha>.

12. IMF, Direction of Trade Statistics, August 2014;<http://www.mofa.go.jp/mofaj/gaiko/page6_000042.html> Accessed on 2 October 2014.

13. Ibid.

14. <http://www.mofa.go.jp/mofaj/gaiko/page6_000042.html> Accessed on 2 October 2014.

15. IMF, World Economic Outlook Database, April 2013; <http://www.mofa.go.jp/mofaj/gaiko/tpp/index.html> Accessed on 3 October 2014.

16. Ibid.

17. It could also be understood the other way around: the declining agriculture sector, represented by JA, was revitalised due to the emergence of a foreign threat – the TPP.

18. Nihhon Keizai Shinbun, 9 November 2010.

19. Nikkan kogyou shinbun, 13 December 2016; Mainich shinbun, 17 December 2016.

20. Nihon nogyou shinbun, 3 December 2016.

21. <http://www.kantei.go.jp/jp/headline/seichosenryaku/sanbonnoya.html> Accessed on 6 June 2017.

22. JORSA (Japan Overseas Railway System Association), No. 3, 4 March 2016, 23–25.

23. Ibid. In October 2014 Japan and the EU agreed upon mutual expansion of market access. JARI, Rolling Stock Industries, Vol.479, July 2016, 57–63.

24. Ibid.

25. Rengou made a joint announcement with the ETUC in December 2015, requesting that the EPA achieves the highest standard of mutually respecting rights. Among the six issues they raised, Rengou stresses that public procurement should follow social and ecologically responsive guidelines, and that irresponsive abolishing of NTBs (of motorcar safety, food and processed food safety, medical equipment and medicine) are not desirable.<http://www.jtuc-rengo.or.jp/activity/kokusai/keizairenkei/epa.html> Accessed on 9 January 2017.

26. <http://www.jtuc-rengo.or.jp/kokusai/index.html><http://www.jtuc-rengo.or.jp/kokusai/takokusekikigyou/index.html> Accessed on 6 September 2016.

27. Jiji Tsushin, 24 September 2016, accessed on 3 October 2016.<http://headlines.yahoo.co.jp/hl?a=20160924-00000010-jij-eurp>.

28. Nissan’s decision will not be taken at its headquarters in Yokohama but in France, which is the headquarters of their parent company, the French constructer Renault. On 29 September 2016 their Chairman and CEO Carlos Ghosn announced that, while he intends to maintain investment for Sunderland, the UK government should reimburse any of Nissan’s losses that might be caused by future custom duties once the UK leaves the EU. Ghosn emphasises that he would make a decision on investment within the next three months because he could not wait until Brexit negotiations are concluded. Jiji Tsushin, 30 September 2016, accessed on 3 October 2016. <http://headlines.yahoo.co.jp/hl?a=20160930-00000006-jij-eurp>.

29. <http://www.kantei.go.jp/jp/singi/euridatsu_taskforce/pdf/dai1_gijisidai.pdf> Accessed on 6 September 2016.

30. European Commission’s EU Trade Commissioner Cecilia Malmström sent a memorandum to Japanese Minister of Economy, Trade and Industry Hiroshige Seko, which emphasised that all efforts should be made for breakthrough of concluding the EPA. Jiji Tsushin, 29 September 2016, accessed on 3 October 2016.<http://headlines.yahoo.co.jp/hl?a=20160929-00000079-jij-eurp>.

31. ‘Basic Policy for Promoting Measures related to Preparations for and Management of the Olympic and Paralympic Games in Tokyo in 2020,’ approved by the Cabinet on 27 November 2015, accessed on 6 September 2016. <http://www.kantei.go.jp/jp/topics/2016/2020olym_paralym/20160311olym_kihonhoshin_en.pdf>.

32. <http://www.meti.go.jp/policy/trade_policy/epa/epa/eu/index.html> Accessed on 6 September 2016.

33. <http://www.keidanren.or.jp/policy/index12.html#eu> Accessed on 6 September 2016.

34. <http://www.visitjapan.jp/ja/> <http://www.mlit.go.jp/kankocho/> Accessed on 5 October 2016.

35. Japan and the EU has reached agreed upon the EPA on 5 July 2017 and signed the agreement on the next day in Brussels.