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A major trade deal between the EU and Japan has been signed that could be worth up to €20bn. For farmers in Ireland and Europe, it will open up the lucrative Japanese market for agricultural products.
As revealed in the Irish Farmers Journal, the deal is most significant for Irish beef exports. Industry experts believe the Japanese market for Irish beef could expand to take up to 20,000 tonnes.
The agreement signed on Thursday between European Commission president Jean-Claude Juncker, European Council president Donald Tusk and Japanese prime minister Shinzo Abe includes specific detail on agricultural exports.
Agriculture agreement
With regards to agricultural exports from the EU, the agreement:
• Scraps duties on many cheeses such as gouda and cheddar (which currently are at 29.8%) as well as on wine exports (currently at 15% on average).
• Will allow the EU to increase its beef exports to Japan substantially, while on pork there will be duty-free trade in processed meat and almost duty-free trade for fresh meat.
• Ensures the protection in Japan of more than 200 high-quality European agricultural products, so called geographical indications.
Other markets
The agreement also opens up services markets, in particular financial services, e-commerce, telecommunications and transport.
It guarantees EU companies access to the large procurement markets of Japan in 48 large cities, and removes obstacles to procurement in the economically important railway sector at national level. It also protects sensitive economic sectors of the EU such as the automotive sector, with transition periods before markets are opened.
This is a win-win for both partners, but a big win for rural Europe
European Commissioner for Agriculture and Rural Development Phil Hogan said: "This is a win-win for both partners, but a big win for rural Europe. The EU-Japan Economic Partnership Agreement is the most significant and far-reaching agreement ever concluded in agriculture.
“Today, we are setting a new standard in trade in agriculture. Tariffs on wine exports will disappear from day one. For wine producers, this means a saving of €134m a year.
"Equally, the Austrian Tiroler Speck, the German Münchener beer, the Belgian Jambon d'Ardenne, the Polska Wódka as well as over 200 other EU geographical indications will now enjoy the same level of protection in Japan that they have in Europe."
The value of exports from the EU could increase by as much as €20bn under the Economic Partnership Agreement. Areas to benefit will include agriculture and food products; leather, clothing and shoes; pharmaceuticals, medical devices and others.
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