On February 1, 2019, the European Union–Japan Economic Partnership Agreement (EPA), the world's largest open economic area[3] covering a third of the world's economy, entered into force.[4]
In 1959, the Japanese ambassador in Belgium was accredited as Japan's first Representative to the European Communities (what would later become the EU in 1993). However, the establishment of a European delegation in Tokyo would take until 1974. In 1984 the first ministerial meeting between the two sides took place (the first summit would be in 1991).[5]
Although cultural and noneconomic ties with Western Europe grew significantly during the 1980s, the economic nexus remained by far the most important element of Japanese-West European relations throughout the decade. Events in West European relations, as well as political, economic, or even military matters, were topics of concern to most Japanese commentators because of the immediate implications for Japan. The major issues centered on the effect of the coming West European economic unification on Japan's trade, investment, and other opportunities in Western Europe. Some West European leaders were anxious to restrict Japanese access to the newly integrated European Union (until November 1993, the European Community), but others appeared open to Japanese trade and investment. In partial response to the strengthening economic ties among nations in Western Europe and to the United States-Canada-Mexico North American Free Trade Agreement, Japan and other countries along the Asia-Pacific rim began moving in the late 1980s toward greater economic cooperation. In 1987, The Japanese government (METI) and the European Commission (Directorate General for Enterprises and Industry) established the EU-Japan Centre for Industrial Cooperation, a non-profit organization aimed at enhancing all forms of industrial, trade and investment cooperation between Japan and the EU. On July 18, 1991, after several months of difficult negotiations, Japanese Prime Minister Toshiki Kaifu signed a joint statement with the Dutch prime minister and head of the European Council, Ruud Lubbers, and with the European Commission president, Jacques Delors, pledging closer Japanese-European Community consultations on foreign relations, scientific and technological cooperation, assistance to developing countries, and efforts to reduce trade conflicts. Japanese Ministry of Foreign Affairs officials hoped that this agreement would help to broaden Japanese-European Community political links and raise them above the narrow confines of trade disputes.
Political relations and agreements
The EU and Japan share values of democracy, human rights, and market economics. Both are global actors and cooperate in international fora. They also cooperate in each other's regions: Japan contributes to the reconstruction of the western Balkans and the EU supports international efforts to maintain peace in Korea and the rest of Asia.[1]
The EU Japanese relationship is anchored on two documents: the Joint Declaration of 1991 and the Action Plan for EU-Japan Cooperation of 2001. There are also a range of fora between the two, including an annual summit of leaders and an inter-parliamentary body.[1] Both sides have now agreed to work towards a deep and comprehensive free trade agreement, discussed at the 42nd G7 summit on May 27, 2016. Four agreements thus far have been signed by the two sides;[2]
The EU-Japan Mutual Recognition Agreement (entered force on January 1, 2002)
An Agreement on Co-operation on Anti-competitive Activities (adopted June 16, 2003)
A Science and Technology Agreement between the EU and Japan (signed November 30, 2009)
The Agreement on Co-operation and Mutual Administrative Assistance (entered force on February 1, 2008)
On December 8, 2017, Japan and the European Union finalized an Economic Partnership Agreement after an agreement in principle was reached in July 2017.[6]
The EU-Japan Economic Partnership Agreement was officially signed on July 17, 2018, becoming the world's largest bilateral free trade deal, creating an open trade zone covering nearly one-third of global GDP.[7][8]
Trade
Japan and the EU are members of the European Union–Japan Economic Partnership Agreement (EPA), the world's largest open economic area,[3] covering a third of the world's economy since February 1, 2019.[4] Japan is the EU's 6th largest export market (3.3% in 2018 with a value of €64.75 billion). EU exports are primarily in machinery and transport equipment (31.3%), chemical products (14.1%) and agricultural products (11.0%). Despite a global growth in EU exports, since 2006 EU exports to Japan have been declining slightly. In 2009, due to the global financial crisis, exports saw a 14.7% drop; however, in 2010 they recovered again by 21.3%. Japan is also the 6th largest source of imports to the EU (3.6% in 2018 with a value of €70.47 billion).[9] Japanese exports to Europe are primarily machinery and transport equipment (66.7%). The EU is Japan's 3rd largest trading partner (11.1% of imports, 13.3% exports).
The trend in the goods trade since 2000 has been characterized by a significant reduction in the EU27 trade deficit with Japan due to a marked drop in latter's share in total EU imports from 9.3% in 2000 to 3.6% in 2012. For details, see the table below:[10]
In 2013, automakers from EU exported 245,363 vehicles, worth €6.4 billion. On the other hand, 365,897 vehicles of €5.7 billion were imported from Japan.[11]
Direction of trade
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
EU to Japan € billion
45.5
45.5
43.5
41.0
43.4
43.7
44.7
43.7
42.3
35.9
43.9
49.0
55.5
Japan to EU € billion
92.1
81.1
73.7
72.4
74.7
74.1
78.2
78.9
76.2
58.2
67.3
69.2
63.8
Balance
−46.6
−35.6
−30.2
−31.4
−31.3
−30.4
−33.5
−35.3
−33.9
−22.3
−23.3
−20.2
−8.3
Between 2009 and 2011 the trade in commercial services between the two partners increased with the EU maintaining a stable surplus and Japan's share in total EU imports also remaining stable at just over 3%.[10]
Direction of trade
2009
2010
2011
EU to Japan € billion
18.6
19.8
21.8
Japan to EU € billion
13.4
15.2
15.9
Balance
5.2
4.6
5.9
Investment
Recently, foreign direct investment (FDI) flows have switched from an EU to Japanese[12] centred flow to one from Japan to the EU.[13] In 2006 the EU invested 16.2 billion euro and Japan disinvested 1.6 billion euro. By the end of 2009, 5.0% of the EU inward FDI stock came from Japan and 2.3% of EU outward FDI stock was in Japan.[2] The EU has been attracting the largest portion of Japanese investment: €78 billion in investment stocks.[1] For details, see the table below:[10]
Direction
2008
2009
2010
2011
EU FDI to Japan € billion
1.726
1.301
−1.785
2.360
Japan FDI to EU € billion
2.324
2.607
2.952
12.068
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 encouraged it to open up more to EU business and investment.[2] While working on reducing trade barriers, the main focus is on opening up investment flows.[1]
Organisations
The Delegation of the European Union to Japan, a formal diplomatic mission, and the European Business Council in Japan (EBC) are both based in Tokyo.[15][16]
^ abcdBilateral relations Japan, European Commission Directorate General for Trade
^ abEU agrees biggest free trade deal with Japan. BBC News. December 8, 2017.
^ abNORIYUKI SUZUKI. Cheaper goods in store as Japan-EU free trade pact enters into force amid U.S.-China tariff war. The Japan Times. February 1, 2019.
^Chronology of EU-Japan Relations November 5, 2011, at the Wayback Machine, Delegation of the EU in Japan
^"European Commission – PRESS RELEASES – Press release – EU and Japan finalise Economic Partnership Agreement". europa.eu. Retrieved December 8, 2017.
^"European Union and Japan to sign historic trade deal". RTE. July 17, 2018. Retrieved July 17, 2018.
^"Japan-EU trade deal 'light in darkness' amid Trump's protectionism". The Guardian. July 17, 2018. Retrieved July 17, 2018.
^Why Vodafone decided to sell Japan operations to SoftBank and quit Japan?, Eurotechnology.com
^Delegation of the European Union to Japan, About the EU Delegation to Japan, published September 1, 2020, accessed April 9, 2021
^European Business Council in Japan, Contact, accessed April 9, 2021
External links
Delegation of the EU to Japan
The Mission of Japan to the EU
March 05, 2023
japan, european, union, relations, relations, between, european, union, japan, date, back, 1959, they, have, strong, trade, relationship, particularly, investment, flows, euro, japanese, relationseuropean, union, japan, defense, minister, taro, kono, josep, bo. Relations between the European Union EU and Japan date back to 1959 They have a strong trade relationship particularly in investment flows 1 2 Euro Japanese relationsEuropean Union Japan Defense Minister Taro Kono and Josep Borrell High Representative of the European Union for Foreign Affairs and Security Policy at 2020 MSC On February 1 2019 the European Union Japan Economic Partnership Agreement EPA the world s largest open economic area 3 covering a third of the world s economy entered into force 4 Contents 1 History 2 Political relations and agreements 3 Trade 4 Investment 5 Organisations 6 See also 7 References 8 External linksHistory EditIn 1959 the Japanese ambassador in Belgium was accredited as Japan s first Representative to the European Communities what would later become the EU in 1993 However the establishment of a European delegation in Tokyo would take until 1974 In 1984 the first ministerial meeting between the two sides took place the first summit would be in 1991 5 Although cultural and noneconomic ties with Western Europe grew significantly during the 1980s the economic nexus remained by far the most important element of Japanese West European relations throughout the decade Events in West European relations as well as political economic or even military matters were topics of concern to most Japanese commentators because of the immediate implications for Japan The major issues centered on the effect of the coming West European economic unification on Japan s trade investment and other opportunities in Western Europe Some West European leaders were anxious to restrict Japanese access to the newly integrated European Union until November 1993 the European Community but others appeared open to Japanese trade and investment In partial response to the strengthening economic ties among nations in Western Europe and to the United States Canada Mexico North American Free Trade Agreement Japan and other countries along the Asia Pacific rim began moving in the late 1980s toward greater economic cooperation In 1987 The Japanese government METI and the European Commission Directorate General for Enterprises and Industry established the EU Japan Centre for Industrial Cooperation a non profit organization aimed at enhancing all forms of industrial trade and investment cooperation between Japan and the EU On July 18 1991 after several months of difficult negotiations Japanese Prime Minister Toshiki Kaifu signed a joint statement with the Dutch prime minister and head of the European Council Ruud Lubbers and with the European Commission president Jacques Delors pledging closer Japanese European Community consultations on foreign relations scientific and technological cooperation assistance to developing countries and efforts to reduce trade conflicts Japanese Ministry of Foreign Affairs officials hoped that this agreement would help to broaden Japanese European Community political links and raise them above the narrow confines of trade disputes Political relations and agreements EditThe EU and Japan share values of democracy human rights and market economics Both are global actors and cooperate in international fora They also cooperate in each other s regions Japan contributes to the reconstruction of the western Balkans and the EU supports international efforts to maintain peace in Korea and the rest of Asia 1 The EU Japanese relationship is anchored on two documents the Joint Declaration of 1991 and the Action Plan for EU Japan Cooperation of 2001 There are also a range of fora between the two including an annual summit of leaders and an inter parliamentary body 1 Both sides have now agreed to work towards a deep and comprehensive free trade agreement discussed at the 42nd G7 summit on May 27 2016 Four agreements thus far have been signed by the two sides 2 The EU Japan Mutual Recognition Agreement entered force on January 1 2002 An Agreement on Co operation on Anti competitive Activities adopted June 16 2003 A Science and Technology Agreement between the EU and Japan signed November 30 2009 The Agreement on Co operation and Mutual Administrative Assistance entered force on February 1 2008 On December 8 2017 Japan and the European Union finalized an Economic Partnership Agreement after an agreement in principle was reached in July 2017 6 The EU Japan Economic Partnership Agreement was officially signed on July 17 2018 becoming the world s largest bilateral free trade deal creating an open trade zone covering nearly one third of global GDP 7 8 Trade EditJapan and the EU are members of the European Union Japan Economic Partnership Agreement EPA the world s largest open economic area 3 covering a third of the world s economy since February 1 2019 4 Japan is the EU s 6th largest export market 3 3 in 2018 with a value of 64 75 billion EU exports are primarily in machinery and transport equipment 31 3 chemical products 14 1 and agricultural products 11 0 Despite a global growth in EU exports since 2006 EU exports to Japan have been declining slightly In 2009 due to the global financial crisis exports saw a 14 7 drop however in 2010 they recovered again by 21 3 Japan is also the 6th largest source of imports to the EU 3 6 in 2018 with a value of 70 47 billion 9 Japanese exports to Europe are primarily machinery and transport equipment 66 7 The EU is Japan s 3rd largest trading partner 11 1 of imports 13 3 exports The trend in the goods trade since 2000 has been characterized by a significant reduction in the EU27 trade deficit with Japan due to a marked drop in latter s share in total EU imports from 9 3 in 2000 to 3 6 in 2012 For details see the table below 10 In 2013 automakers from EU exported 245 363 vehicles worth 6 4 billion On the other hand 365 897 vehicles of 5 7 billion were imported from Japan 11 Direction of trade 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012EU to Japan billion 45 5 45 5 43 5 41 0 43 4 43 7 44 7 43 7 42 3 35 9 43 9 49 0 55 5Japan to EU billion 92 1 81 1 73 7 72 4 74 7 74 1 78 2 78 9 76 2 58 2 67 3 69 2 63 8Balance 46 6 35 6 30 2 31 4 31 3 30 4 33 5 35 3 33 9 22 3 23 3 20 2 8 3Between 2009 and 2011 the trade in commercial services between the two partners increased with the EU maintaining a stable surplus and Japan s share in total EU imports also remaining stable at just over 3 10 Direction of trade 2009 2010 2011EU to Japan billion 18 6 19 8 21 8Japan to EU billion 13 4 15 2 15 9Balance 5 2 4 6 5 9Investment EditRecently foreign direct investment FDI flows have switched from an EU to Japanese 12 centred flow to one from Japan to the EU 13 In 2006 the EU invested 16 2 billion euro and Japan disinvested 1 6 billion euro By the end of 2009 5 0 of the EU inward FDI stock came from Japan and 2 3 of EU outward FDI stock was in Japan 2 The EU has been attracting the largest portion of Japanese investment 78 billion in investment stocks 1 For details see the table below 10 Direction 2008 2009 2010 2011EU FDI to Japan billion 1 726 1 301 1 785 2 360Japan FDI to EU billion 2 324 2 607 2 952 12 068Doing 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 encouraged it to open up more to EU business and investment 2 While working on reducing trade barriers the main focus is on opening up investment flows 1 Organisations EditThe Delegation of the European Union to Japan a formal diplomatic mission and the European Business Council in Japan EBC are both based in Tokyo 15 16 See also Edit Japan portal European Union portal Politics portalEconomy of the European Union Economy of Japan Rules of Origin Market access Free trade areaReferences Edit a b c d e EU Japan overall relationship European External Action Service a b c d Bilateral relations Japan European Commission Directorate General for Trade a b EU agrees biggest free trade deal with Japan BBC News December 8 2017 a b NORIYUKI SUZUKI Cheaper goods in store as Japan EU free trade pact enters into force amid U S China tariff war The Japan Times February 1 2019 Chronology of EU Japan Relations Archived November 5 2011 at the Wayback Machine Delegation of the EU in Japan European Commission PRESS RELEASES Press release EU and Japan finalise Economic Partnership Agreement europa eu Retrieved December 8 2017 European Union and Japan to sign historic trade deal RTE July 17 2018 Retrieved July 17 2018 Japan EU trade deal light in darkness amid Trump s protectionism The Guardian July 17 2018 Retrieved July 17 2018 http trade ec europa eu doclib docs 2006 september tradoc 122530 pdf bare URL PDF a b c EU Japan Trade Eurostat http www borderlex eu car train industry opposition may quash goal clinch eu japan fta 2015 Archived August 25 2018 at the Wayback Machine Car train industry opposition may quash goal to clinch EU Japan FTA in 2015 October 27 2014 EU to Japan direct investment EU Japan com Japan to EU direct investment EU Japan com Why Vodafone decided to sell Japan operations to SoftBank and quit Japan Eurotechnology com Delegation of the European Union to Japan About the EU Delegation to Japan published September 1 2020 accessed April 9 2021 European Business Council in Japan Contact accessed April 9 2021External links EditDelegation of the EU to Japan The Mission of Japan to the EU Retrieved from https en wikipedia org w index php title Japan European Union relations amp oldid 1142345254, wikipedia, wiki, book, books, library,