The EU and Japan have entered into a trade agreement. The EU-Japan Economic Partnership Agreement will boost the EU’s economy. It will remove the vast majority of duties paid by EU companies. Exports to Japan from the EU could increase by as much as 22.8 billion dollars, which could pose a direct hit to US manufacturing.

Japan will have cut out customs duties on 97 per cent of goods imported from the EU. Tariffs on textiles and clothing will be fully abolished and for leather and shoes the existing quota system will be done away with once the agreement takes effect. Tariffs on shoes will come down from 30 per cent to 21 per cent right away and the rest of the duties will be eliminated over ten years.

Tariffs on EU exports of leather products, like handbags, will be eliminated over ten years as will gear like sports shoes and ski boots, which have traditionally been highly protected by Japan.

The agreement should come into force early in 2019.

When it comes to labeling, things will continue to be easier to facilitate trade. In March 2015, Japan adopted the international textiles labeling system similar to the one used in the EU. Textile labels therefore no longer have to be changed on every single garment exported to Japan, as was the case before.