Trade Policy Insights: EU – Japan eliminate tariffs – Global Impact Report
Author: Daniela Stratulativ, Head of Global Trade Analysis, IHS Markit Maritime & Trade
- EU Japan Economic Partnership Agreement signed July 17, 2018. Expected to enter into force in 2019 and eliminate tariffs on most commodities.
- EU and Japan represent nearly 30% of the global economy and markets of 600 million people.
- Trade with partners whose products are subject to higher duties than the EU and Japan new negotiated tariffs, will decrease and higher volumes will be traded between EU and Japan.
What do the new tariffs mean for the global supply chains?
- EU imports from Japan in 2017 reached over 5 million tonnes. Top traded commodities were vehicles, machinery, mineral fuels, chemicals, and plastics. EU states importing high volumes of these commodities were: Belgium, Germany, UK, France, Netherlands, Spain.
- Japan imports from EU of over 8 million tonnes in 2017, were highest for wood, vehicles, paper, beverages, and meat. Main exporters were Finland, Sweden, France, Germany, Italy, UK, Spain.
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- Industries and EU States that will benefit by increasing trade with Japan.
- EU and Japan trade partners who could experience decrease in trade volumes.
- Wood trade - highest volume of Japan imports from EU - impact on Egypt, US, China, Morocco, Australia, Norway, United Arab Emirates, Saudi Arabia, amongst others.
- Automotive trade - highest volume of EU imports from Japan - impact on US, Russia, Turkey, South Korea, Mexico, Canada, Switzerland, Norway, Australia, United Arab Emirates, South Africa, amongst others.
This column is based on data from IHS Markit Global Trade Atlas (GTA).
Risks, opportunities, impact on supply chains and shipping industry can be identified for any products at 6-digit code level within GTA. Insights can be complemented with bill of lading data from PIERS and vessel movements via AIS.
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