The International Trade Council commends the remarkable progress that has been achieved through the EU-Japan Economic Partnership Agreement (EPA), often referred to as the 'cars-for-cheese' deal, and spotlights the significant opportunities it opens up for small and medium-sized enterprises (SMEs).
The EPA, which came into effect earlier this year, represents nearly 30% of global GDP, 40% of global trade, and creates the largest open-trade zone globally, covering 600 million people. This bilateral agreement slashes duties on Japanese and European imports respectively, leading to enormous benefits for both sides.
However, the council emphasizes that this colossal achievement in international trade also translates into unparalleled business opportunities for SMEs, particularly for European exporters.
The Lithuanian SME, Altechna, provides a case in point. As a leader in laser optics and coatings, the firm has significantly benefited from the EPA. Thanks to the EU-Japan Centre for Industrial Cooperation, the firm has successfully penetrated the Japanese market, demonstrating how the strategic use of the EPA can fuel growth and innovation in small businesses.
The EU-Japan Centre for Industrial Cooperation, financed and managed jointly by the European Commission and Japan, plays an instrumental role in fostering trade, investment, and industrial cooperation between both regions. The council applauds their initiative to establish an EPA helpdesk and provide continuous guidance to SMEs to fully exploit the opportunities presented by the trade deal.
It is projected that the EPA will cut duties for European exporters by around €1 billion annually and could stimulate European exports by 16-24% over the next decade and beyond. However, Philippe de Taxis du Poët, General Manager of the EU-Japan Centre for Industrial Cooperation, underscores that SMEs must stay well-informed and guided to maximize the benefits of the EPA.
The council echoes this sentiment and encourages small European firms to avail themselves of the resources provided by the EU-Japan Centre for Industrial Cooperation. This includes support in tech transfer, intellectual property, and fostering cooperation between regions and clusters.
The International Trade Council recognizes the challenges that SMEs may encounter in accessing foreign markets, particularly in Japan. We reaffirm our commitment to promoting open trade and mutual benefits and support the call for SMEs to invest in long-term relationships built on trust. The EU-Japan EPA is a shining example of how such dedication can lead to substantial rewards.
