NEWS     16.09.2025

The EU – Japan Economic Partnership Agreement (EPA)

Trade between the European Union and Japan represents one of the most important bilateral economic relationships. Together, the EU and Japan account for nearly a quarter of global GDP and close to 20% of global trade in goods and services. Japan remains the EU’s second-largest trading partner in Asia, after China, and the seventh-largest partner globally in terms of goods and services.

This strong and growing economic relationship is supported by the EU–Japan Economic Partnership Agreement (EPA), which entered into force in February 2019. Over the years, the EPA has developed from a standard trade deal into a legal framework that sets out trade and investments rules between two of the world’s leading economies. It is based on three main pillars: Market Access, Regulatory cooperation, and Rules and standards.

Market access

 The elimination of tariffs is one of the biggest benefits of the EPA. When the agreement came into force, Japan eliminated tariffs on 94% of imports from the EU. This figure has increased to 97% since then. The EU, in turn, has removed tariffs on 99% of goods from Japan.

However, to benefit from reduced tariffs companies must meet specific rules of origin, meaning they must prove that their products are made in Japan or the EU. The agreement allows companies to self-certify the origin of their goods, so they don’t need a certificate from a government authority. This makes customs procedures easier, but it also means that companies must keep accurate records and documentation. Any mistakes or missing information can lead to loss of preferential tariff benefits, customs fines, or other compliance issues.

Regulatory cooperation

 In addition to tariff liberalization, the EPA adopts regulations eliminating non-tariff barriers, which in many cases pose greater challenges than tariffs themselves. These barriers include different or overly complex technical regulations, product standards, and conformity assessment procedures that make it difficult for products to enter and compete in each other’s markets.

To handle these issues, the EPA promotes the harmonization of regulations (where possible), the mutual recognition of standards and conformity assessment procedures, and bigger transparency in regulatory processes. These measures are especially important in highly regulated sectors, where regulatory alignment can facilitate smoother and more predictable trade flows between the EU and Japan.

Rules and standards

 The third pillar of the EPA covers a broad range of rules and standards that provide the legal certainty and predictability important for long-term investment and trade. These provisions go further than typical trade agreements, incorporating shared values into the legal framework governing economic relations between the EU and Japan.

Sustainable development is a key element. Both parties confirm their commitments to high levels of environmental and labour protection, in line with international standards such as the Paris Agreement and the core conventions of the International Labour Organization. Another important focus is intellectual property rights. The agreement improves the protection of patents, trademarks, copyrights, and trade secrets, aligning Japan’s standards more closely with those of the EU.

The EPA also provides comprehensive protection for geographical indications. More than 200 EU food and drink products – such as Champagne, Roquefort cheese, Bavarian beer, and Parmigiano Reggiano cheese – now receive legal recognition and protection in Japan, offering EU producers exclusive rights to market their goods under recognised regional names in Japan. In return, Japanese geographical indications are also protected in the EU. Regarding customs and trade simplification, the agreement promotes simplified procedures, more transparency, and risk-based controls.

The agreement also considers the specific needs of small and medium-sized enterprises by including measures that help them make full use of the EPA’s benefits. It provides practical tools such as an online EPA helpdesk, user-friendly guides on rules of origin and customs procedures, and searchable databases covering tariffs and product requirements. Dedicated contact points and easier access to regulatory information further support SMEs in dealing with cross-border trade procedures.

Finally, the ETA increases the transparency of the regulatory processes by establishing clear obligations for prior consultation on proposed laws or regulations that may impact trade or investment and information exchange. It also sets up structured dispute resolution mechanisms, which helps to ensure that regulations are interpreted and enforced consistently.

Conclusion

The EPA offers significant benefits for companies involved in trading or investing between the EU and Japan, but only if its provisions are properly understood and effectively applied. From a legal perspective, several areas require particular attention to ensure compliance with the agreement. It provides a solid legal basis, but to take full advantage of it, careful planning, ongoing compliance, particular attention to the legal requirements of both the EU and Japan are necessary.

Grzegorz Kłodkowski
Stefan Radaković