The EU-Japan economic partnership agreement
The EU and Japan, which together account for 30% of global GDP, have reached a framework agreement on an economic partnership agreement (EPA), paving the way for the creation of the world's largest free trade area. The EPA involves high standards of trade liberalisation, comparable to the Trans-Pacific Partnership.
Japan will expand its traditional exports (autos and electronics), but also new 'star' products such as sake and green tea.
The EU will benefit most from opportunities to export more agricultural goods, processed food and beverages.
European auto and electronics makers and Japanese producers of food and agricultural products will face greater competitive pressure.
The EPA will boost household consumption in both economies.
EU-Japan cooperation on standard-setting may create challenges for developing countries in particular.
