EU FTA With Japan Gets Merkel's Backing

by Mary Swire, Tax-News.com, Hong Kong

13 May 2011

Germany’s Chancellor Angela Merkel has pronounced that she is in favour of the commencement of free trade agreement (FTA) negotiations between the European Union (EU) and Japan.

In March this year, as a measure of support following the earthquake and tsunami, a meeting of the European Council emphasized the importance of the EU’s relationship with Japan, and said that it would look to the potential launch of negotiations for an FTA on the basis that Japan is willing to tackle such disputed issues as its non-tariff barriers and restrictions on public procurement.

Merkel has now disclosed, at a press conference, that Germany is in favour of those talks, following the completion of the FTA with South Korea which is expected to come into effect on July 1. She added that, as in the agreement with South Korea, the Japanese automotive sector could present some difficulties.

While Merkel said that she would discuss the possible trade treaty with the Japanese Prime Minister Naoto Kan at the G8 summit towards the end of this month, it is said that the annual EU-Japan meeting to be held thereafter may be the opportunity for an announcement of when the talks on a trade treaty could begin.

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