UK ’ s key role in deal that could increase trade by € 1trn
INTERVIEW
EU – Japan FTA : Update
UK ’ s key role in deal that could increase trade by € 1trn
By Julian Ryall
A
30-strong delegation from the European Commission held a second round of discussions on a Free Trade Agreement ( FTA ) with Japan over 10 days in Tokyo in late May and early June .
The first round of talks , held in Brussels in April , is considered to have been a success . There are high hopes that an agreement can be reached that is worth around € 1trn in increased trade between the two blocs . A significant portion of this will come from the UK , where bilateral trade with Japan is running at around £ 18bn a year .
Antonio Parenti , deputy head of the European Commission ’ s Far East Unit , gave BCCJ ACUMEN an update on the progress of the discussions .
How would you describe progress to date in talks on an FTA ?
We are still at the beginning of the discussions and it will be a long and complicated process .
So far , we are at the stage of better defining how we can achieve the goals we set out in the preparatory stage . We are preparing the ground for entry into the more substantive part of the negotiations .
I believe [ the process ] has been going according to plan , and we have had two positive meetings . I don ’ t think either side expected a breakthrough at this stage but , that notwithstanding , we have seen progress in terms of understanding each other ’ s position and I feel that will pay off as we go forward .
Antonio Parenti is deputy head of the European Commission ’ s Far East Unit .
© EUROPEAN UNION , 2013
Jun Yokota , chief negotiator , and Mauro Petriccione , a director for development and management of trade relations
How long do you expect the discussions to continue ?
It ’ s very difficult to say . If you look at how long it took to reach an agreement with South Korea , that was about two-and-ahalf years .
I think that , given the time these types of efforts require on both sides , that [ time frame ] is a reasonable expectation for these discussions .
If it can be done faster , the European side is ready to move forward faster — but not at the expense of substance . This is for the negotiating process , however , and after that will come the ratification process .
Which areas are progressing most smoothly ? We have 15 working groups . None of these groups has yet got down to negotiations on the treaty texts .
We are therefore still in the process of explaining what we are looking for , why we want it — and then understanding what the Japanese side wants and why they want it .
I think at this stage we can say there will be areas that are easier to negotiate than others but , overall , the principle of negotiations is that nothing is agreed until everything is agreed .
Which areas will be easier to negotiate ? The institutional issues will most likely be easier in areas such as dispute settlement mechanisms . All the rest will be more complicated , to varying degrees .
We are talking about two major economies that want to integrate here , after all . This agreement will only make sense if we create an economic environment in which companies of both countries can compete in each other ’ s markets on a fair basis .
How does the EU team prioritise trade issues it wishes to negotiate from the long list of measures to be debated ?
We are not at the point of prioritising issues yet . This will only come in the later stages for both sides . This will be the crucial time in the discussions .
Negotiations are [ deemed ] successful if both [ the EU and Japan ] are able to make compromises that are mutually acceptable .
Will you be calling on EU firms to support the negotiations later ? If so , how will you do this ?
EU companies have already been asked to support the talks and have been contributing . We are definitely looking for their continued support .
I think it is fair to say that we need them to help create solutions . We want , and need , that for the companies operating in Japan .
We need to know their concepts for this market , the problems that they face , and if the solutions we are creating are effective in solving common problems and avoiding the creation of new problems .
22 | BCCJ ACUMEN | JULY 2013