Japan is signing a free trade agreement with the EU. The EU and Japan are keeping leading roles in the development of advanced technological materials and creating high quality fashion goods. For the EU’s textile and clothing sector, Japan is among the top 10 largest customers. For the Japanese industry, the EU is the second biggest export market. The EU mainly exports clothing and in particular premium products made from wool and silk while it imports fibers and yarns from Japan.

Japanese and European textile and fashion sectors face similar challenges. The free trade agreement will help their companies increase trade and investment potential. A comprehensive trade deal will build platforms for R&D cooperation creating innovation and business opportunities.

Full elimination of tariffs, which will mean duty free access from day one for all textile and clothing products, will be beneficial for industries on both sides. Currently, tariffs are quite similar in both parties; duties can be up to 11 per cent when exporting clothing to Japan.

The trade deal shall result in simplification of burdensome customs procedures. Japan with its progressive technologies is already one of the EU’s most advanced partners. The trade deal will have a positive impact not only on the flow of goods between the countries, but also enhance the spillover effect in innovation.