EU-Japan set to ratify trade deal, Asian airlines will be first to benefit
JAPAN and the European Union have taken steps to solidify their relationship with what is being called the EU's largest bilateral trade agreement in its history, reports UK's Transport Intelligence
JAPAN and the European Union have taken steps to solidify their relationship with what is being called the EU's largest bilateral trade agreement in its history, reports UK's Transport Intelligence.
Two immediate beneficiaries will be Silk Way West Airways and Japan Airlines' JAL Cargo subsidiary, which just signed a joint-venture agreement, enabling JAL Cargo to use Silk Way West's air freight capacity on flights between Azerbaijan and Japan.
The EPA deal was signed last week, on July 17, but still has yet to be ratified by both parties. If passed, the terms would likely go into effect next year.
Under the Economic Partnership Agreement (EPA), the EU has agreed to phase out its automotive tariffs over a number of years, while Japan said it will gradually remove its agricultural tariffs.
The EPA deal will mostly involve goods that are shipped by sea or land modes. However, some perishable or urgent, high-value goods that are normally sent by air may also be affected, said Ti.
For instance, the EU has granted full liberalisation of agricultural products, with the exception of rice. Japan will reduce tariffs and increase quotas for goods such as wine, dairy products, pork, beef, poultry and eggs.
In addition, there will be a phasing-out of the EU's 10 per cent tariff on Japanese car imports over the next seven years, plus the elimination of most tariffs on car parts - many of which are often shipped by air, noted New York's Air Cargo World.
The final goal of the deal will be the removal of tariffs on shipments of all industrial goods between Japan and the EU countries. The two entities will also fully align standards on product safety and environmental protection.