EU-Japan FTA in the Making

Eu trade ministers have formally given the green light for Brussels to begin negotiations with Tokyo for a bilateral trade deal, officials announced late last week. The news comes as the 27-country bloc continues its efforts to finalise trade pacts with Canada, Colombia, and Peru, among others, while exploring options for new negotiations with other trading partners in an effort to create jobs and foster economic growth in the struggling eurozone.

While momentum toward launching talks with Japan has been building over the past few months, some EU legislators and member states have expressed concern that some sectors - particularly automobiles - might suffer as the result of a trade deal, unless Tokyo dramatically lowers non-tariff barriers in these areas. The massive influx of cars from South Korea after Brussels’ FTA with Seoul took effect last year has fuelled these fears further among European automakers, especially those in France and Italy.