EU-Japan trade agreement - (EPA) entered into force on 1 February 2019.

[Lucius]

After six years of negotiations between EU and Japan, this agreement is entered into force and opened a new chapter in the trade between Japan and EU. It is about the market of 635 million people and almost 1/3 of the world's GDP, which is pretty massive.

This agreement is about cut of duties, 94% of all EU product exported in Japan, and 99% of product that Japan export to EU. Just for example, Japan is now pay in average 30% tax on product from EU. This agreement provides for the gradual reduction of customs duties, so it will take from 6 to 15 years to achieve all the set measures.

The key parts of the Economic Partnership Agreement

• scrap Japanese 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);
• 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;
• ensure the protection in Japan of more than 200 high-quality European agricultural products, so called Geographical Indications (GIs), and the protection of a selection of Japanese GIs in the EU.
• facilitates to EU companies access to the procurement markets of 54 large Japanese cities, and removes obstacles to procurement in the economically important railway sector at national level;
• addresses specific sensitivities in the EU, for instance in the automotive sector, with transition periods of up to 7 years before customs duties are eliminated.

Since Japan is very friendly toward the cryptocurrency and everything is regulated there, can this agreement help EU to do something similar? Japanese experiences can certainly help about that, the question is only whether there will be cooperation in this sector. On the other hand, I think this is a very good thing for all companies, and also for end-users who will benefit from lower prices.

Links :

http://ec.europa.eu/trade/policy/in-focus/eu-japan-economic-partnership-agreement/
http://europa.eu/rapid/press-release_IP-19-785_en.htm
https://www.bbc.com/news/business-47086737

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[Davidbugs]

allow the EU to increase its beef exports to Japan substantially

YES! Let them import Polish cows

and the protection of a selection of Japanese GIs in the EU.

YES! Let them export noddles

Since Japan is very friendly toward the cryptocurrency and everything is regulated there, can this agreement help EU to do something similar?

No, Urope only wants the money, nothing else

[dothebeats]

If the trade agreement is truly mutual and both parties really agree on the terms, I can say that the EU can learn a thing or two from Japan which is known for its stance on cryptocurrency. Most EU countries are not that friendly towards bitcoin, while some are really open about accepting it all the while imposing crazy taxes on capital gains made through bitcoin and cryptocurrencies, so I guess this is a perfect opportunity for the regulators to speak with each other and exchange strategies on handling cryptocurrencies.

[LeGaulois]

@dothebeats
I disagree, It's just a commercial trade agreement not a Treaty of the European Union. None other parties that the ones concerned will be involved in. Each has its politic and isn't interested in what's going on outside, they do it for their own "commercial interests" nothing more.
I can't imagine such agreement opening the door to discussions on a dozen industries

[jeromix]

@dothebeats
I disagree, It's just a commercial trade agreement not a Treaty of the European Union. None other parties that the ones concerned will be involved in. Each has its politic and isn't interested in what's going on outside, they do it for their own "commercial interests" nothing more.
I can't imagine such agreement opening the door to discussions on a dozen industries

LOL, so there is an misunderstanding between the OP and the news. As usual in business a marketing strategy will apply and they will find a way that they could benefit and so does the other party. This is what they usually call a partnership. And I agree a treaty is different with an agreement.

[Lucius]

LOL, so there is an misunderstanding between the OP and the news. As usual in business a marketing strategy will apply and they will find a way that they could benefit and so does the other party. This is what they usually call a partnership. And I agree a treaty is different with an agreement.

There is no misunderstanding in my interpretation of this news. I just ask hypothetical question based on Japan's open approach toward cryptocurrency, and since EU will probably more cooperate with Japan in the years to come, it is possible some sort of influence on EU crypto regulation.

In some crazy development of events, part of the the trading could be implemented in cryptocurrency - imagine almost 0% customs duties and payment for goods/services in BTC by using lightning network. But do not be too laughable about this, that's just speculation of future world in my mind

[exstasie]

LOL, so there is an misunderstanding between the OP and the news. As usual in business a marketing strategy will apply and they will find a way that they could benefit and so does the other party. This is what they usually call a partnership. And I agree a treaty is different with an agreement.

There is no misunderstanding in my interpretation of this news. I just ask hypothetical question based on Japan's open approach toward cryptocurrency, and since EU will probably more cooperate with Japan in the years to come, it is possible some sort of influence on EU crypto regulation.

This is just a free trade agreement, right? So it slashes or eliminates some duties on goods. I don't see why that would influence EU or member-specific crypto regulation. One has nothing to do with the other.

I'd rather not see Japan's approach replicated elsewhere. They are too involved, overregulating the spot market, and the FSA has shot down the idea of derivative markets.

[Lucius]

This is just a free trade agreement, right?

That's right, but further co-operation should not be excluded in future, and why not in the field of cryptocurrency where Japan is much more involved then EU. Maybe they are as you say to involved&overregulating, but it is better than no regulation and gray or black zones where companies or ordinary users have no clear rules.

It is only trade agreement, but trading involves money and BTC is cryptocurrency. As I say before, maybe in future BTC or some other coin can replace fiat, and Japan will be ready for that because they regulated that sector and they developing the necessary infrastructure for crypto payments.

Interesting article about Japan and Olympics games in Tokyo :

The world’s largest experiment in using blockchain-based networks to pay for things is about to begin.

[Kemarit]

EU is still divided with regards to crypto so I don't know if there can be an influence coming from Japan. Again, this is just a trade agreement, so there will be no influence whatsoever regarding Japan stance on crypto to other EU nations, unless Japan insists on some form of crypto discussion from EU in the future, I don't see it happening though, just pure commercial trade agreement, I reckon.

[eternalgloom]

I don't think that this trade agreement would have any direct effect on Europe's stance on cryptocurrency.
That said, it wouldn't be too far fetched to think that this is the sign of a broader cooperation between the EU and Japan on other issues a well.

The trade agreement itself is pretty good news IMO, I'm all for abolishing certain trade tariffs and protectionist measures in certain industries.

It is only trade agreement, but trading involves money and BTC is cryptocurrency. As I say before, maybe in future BTC or some other coin can replace fiat, and Japan will be ready for that because they regulated that sector and they developing the necessary infrastructure for crypto payments.

This is taking a bit of a leap though. While it could happen that cryptocurrency replaces fiat in the future, it's not something you should really hold into account in this case.

[davis196]

The Japan-EU trade agreement is only about conventional goods and services.It would be great if they make a crypto agreement,regarding all the EU residents that want to open accounts and invest in Japanese crypto exchange platforms or the opposite.We need more clarity in the legislation of both Japan and the EU.

[poptok1]

• addresses specific sensitivities in the EU, for instance in the automotive sector, with transition periods of up to 7 years before      customs duties are eliminated.

Sensitivities... wasn't aware that Germany change it's name recently. Globalisation continues, giants are left alone, protected against free market and price dumping while smallest, fragile food producers are putted out on the front lines.
Who cares about transcontinental diseases, let's transport "fresh" meat across the world, what can go wrong?
This will harm cattle and swine farmers greatly along with them, ordinary citizens will be left with no choice, as to what kind of food they can buy. Basically they removed fees from stuff that you can get of your local market, local economy and left those that are available only through import/export. Wow such care about small, so much fairness... This will lead many to suicide, mark my words.

[tonyja2017]

 wow, i think this is really a great deal. This is a good strategy from 2 countries. they want our economy to recover quickly, so they have reduced their customs duties significantly and let the sales of businesses be significantly increased. people's lives have also improved a lot.
In addition, this seems to be a major turning point of close cooperation between the EU and Japan.
It seems that China is quite jealous of this agreement.

[Betwrong]

~ Basically they removed fees from stuff that you can get of your local market, local economy and left those that are available only through import/export. Wow such care about small, so much fairness... This will lead many to suicide, mark my words.

Normally I enjoy reading your posts, but I disagree with you on this one. I think this agreement can't pose a threat to European farmers because although the prices on imported food from Japan will become lower, they still will be higher(if not much higher) than those on local food products. Keep in mind that this agreement was made not with some poor underdeveloped country, but with one wealthiest countries in the world. It's a known fact that food in Japan is of very good quality but also that it is very expensive.

And I do think that wider cooperation between Japan and EU can lead to Europe's higher friendliness towards cryptocurrency. So I think overall it's a very good news.

[poptok1]

Normally I enjoy reading your posts, but I disagree with you on this one.

I'm glad that you do otherwise it would be like preaching to the quire, pointless.

Keep in mind that this agreement was made not with some poor underdeveloped country, but with one wealthiest countries in the world.

Yes, but please also bear in mind that EU in not a single country. Germany, France, Italy those are quite wealthy but Hungary, Poland, Slovakia are heavily based on agricultural economics. Those are EU's granaries sort of speak. Farmers already having problems with selling their produce because of over-import. EU is giving up on them, cares not about real food, GMO free etc.
My point is; we don't need cheaper apples, cheaper pork or candy. We need cheaper TECHNOLOGY in order to stay competitive.
And all we got are fees on tech. and lack of fees on food... backwards

And I do think that wider cooperation between Japan and EU can lead to Europe's higher friendliness towards cryptocurrency.

#Me to.