EU–Japan Economic Partnership Agreement

At entry into force, Japan abolished or began phasing out duties on most EU exports; when fully implemented, about 97 per cent of tariff lines on the Japanese side are duty-free, with the rest partly liberalised through reductions or quotas. The EU removes duties on about 99 per cent of tariff lines for Japanese goods. Many tariffs were eliminated immediately, others fall in annual steps over periods of up to 15 years or more.

For European exporters, the most visible changes concern food and drink, where Japanese tariffs had been high: duties on wine were removed at entry into force, and those on many cheeses, processed foods, pork and beef are being cut or opened through quotas. On the EU side, the 10 per cent duty on Japanese passenger cars is phased out in stages over eight years, and duties on most car parts were removed immediately.

Only goods that originate in the EU or Japan under the agreement's rules of origin qualify for preferential tariffs. The rules are defined product by product, for example by a change of tariff classification or a maximum share of non-originating materials.

The EPA uses self-certification: the exporter makes a statement on origin on the invoice or another commercial document, or the importer claims preference based on its own knowledge of the product's origin. EU exporters must be registered in the Registered Exporter system (REX) for consignments above a set value. Companies should keep supporting documents, as customs authorities can verify origin afterwards.

Japan agreed to align its car regulations with international UNECE standards, so vehicles approved in the EU need fewer additional tests. Commitments cover medical devices, pharmaceuticals, food additives, textile labelling and other sectors where Japanese rules differed from international practice.

In public procurement, European companies gained access to tenders in Japan's larger cities and in the railway sector, where an 'operational safety clause' previously used to exclude foreign bidders was removed. Japan in turn gained reciprocal access to EU procurement markets.

The agreement protects European and Japanese geographical indications against imitation in each other's markets. Names such as Champagne, Parmigiano Reggiano, Tiroler Speck and Bayerisches Bier are protected in Japan, and Japanese products such as Kobe Beef and several sake designations in the EU. The list has been extended several times since 2019.

The EPA opens markets in services such as financial services, telecommunications, e-commerce, postal and maritime services, and includes rules on competition, subsidies, intellectual property and state-owned enterprises. Investment protection and investment dispute settlement were left for separate negotiations.

In January 2019, the EU and Japan adopted mutual adequacy decisions allowing personal data to flow freely under their data protection rules. A protocol adding binding rules on cross-border data flows to the EPA entered into force on 1 July 2024, prohibiting data localisation requirements in covered sectors.

Preferences are not applied automatically: exporters must check the tariff classification and the applicable preferential rate, verify that the product meets the rules of origin, and include a correct statement on origin. Many companies, especially smaller ones, have not used the preferences to which they are entitled. The EU-Japan Centre for Industrial Cooperation, chambers of commerce and customs authorities provide guidance, and the EU's Access2Markets portal lists tariffs and rules for individual products.

For companies outside the EU, other agreements apply: Switzerland has had a bilateral free trade and economic partnership agreement with Japan since 2009, and the United Kingdom its own comprehensive economic partnership agreement since 2021.