JEFTA EU-Japan Free Trade Agreement - Opportunities and Avoidance of Risks

JEFTA (Japan-EU Free Trade Agreement) is a free trade and investment protection agreement between Japan and the European Union, which has been in force since 01 February 2019.

Aspirations are:

  • The dismantling of trade barriers
  • Establishing rules and standards for fair trade
  • Reduction of import duties
  • Simplified processes and approval procedures

With the final destination:

  • the further opening of the market
  • job creation
  • currency growth on both sides

In principle, JEFTA is the first agreement in which the signatories explicitly commit to the Paris Climate Agreement.

Customer Responsibility:

It is now important for importers and exporters to understand the agreement, to follow the guidelines and rules in order to take advantage of possible preferences, but at the same time to avoid possible risks in case of wrong application.

The link below explains the full agreement accordingly:

https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ:L:2018:330:TOC

(please follow "EU-Japan Economic Partnership Agreement" page 3)

The main contents of the preferential arrangements are set out in the following chapters.

  • Chapter 3 / Rules of origin and origin procedures
  • Annex 3-A / Rules of origin
  • Annex 3-B / Origin procedure
  • Annex 3-C / Other

In addition, the European Commission has published the following guidelines for further explanation.

https://ec.europa.eu/taxation_customs/business/international-affairs/international-customs-cooperation-mutual-administrative-assistance-agreements/japan_de

JEFTA Economic Partnership Agreement - chances and how to avoid risks

The Economic partnership agreement or colloquially JEFTA (Japan-EU Free Trade Agreement) is a free trade and investment protection agreement between Japan and European Union which went live Feb 1st 2019.

The main goals are:

  • Removing trade barriers
  • To design rules and standards that ensure fair trade
  • Lower import duties
  • Simplify processes and approvals

Which will consequently:

  • open markets
  • create jobs
  • grow the economies of both sides

Overall JEFTA is the 1st trade agreement where both parties explicitly commit to the Paris climate agreement.

Customers responsibility

Very important for Importers and Exporters is now to follow the rules and guidelines to make sure possible preferences can be enjoyed accordingly and to avoid possible risks consequently when not adhering same.

The following link will guide you through the complete agreement

https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ:L:2018:330:TOC

(Follow "Agreement between European Union and Japan for Economic Partnership" page 3)

The main content dealing with preferential rules is captured in the following chapters.

  • Chapter 3 / Rules of Origin and origin procedures
  • Annex 3-A / Introductory notes to product specific rules of origin
  • Annex 3-B / Product specific rules of origin
  • Annex 3-C / others

Additionally the European commission has published the following guidelines for further explanation

https://ec.europa.eu/taxation_customs/business/international-affairs/international-customs-cooperation-mutual-administrative-assistance-agreements/japan_en