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Negotiations for a Free Trade Agreement (FTA) between the EU and Japan were announced March 25, 2013 and the first round of negotiations began in Brussels during April. As the Asian countries fight one another to be the alpha in the Asian economy, the Japanese government has been put under pressure to keep up with South Korea’s trade talks with the EU in light of Prime Minister Abe’s sluggish progress regarding negotiations to partake in the Trans-Pacific Partnership (TPP).
Japan is the EU’s largest Asian trading partner after China and together the EU and Japan have more than a third of the world’s GDP. Trade between the European Union and Japan was valued in 2011 at €146B . Trade items between the two countries are majorly machinery, transport equipment and chemical products.
In regards to the FTA negotiations in March, the European Commission released a statement saying that “Both sides aim at concluding an agreement covering the progressive and reciprocal liberalization of trade in goods, services and investment, as well as rules on trade-related issues” . These negotiations stem from a join exercise conducted by the EU and Japan in 2012 that analyzed the impacts if the FTA negotiations are successful.
Thus far, the elimination of non-tariff barriers is the priority for the European Commission to help level the playing field for European business in the Japanese market. While generally, the Japanese place low tariffs on goods, the fees for agricultural goods as well as processed foods and beverages remain high. The Japanese have requested for a removal of duties in return on exports such as motor vehicles, electronics, and machinery. A free-trade agreement would keep Japan on-pace with South Korea, the first Asian nation to sign an FTA with the EU.
Historically, trade between Europe and Japan has favored the Japanese in the form of strong trade surpluses or a greater amount of exports than imports which positively aids their GDP, in spite of Europeans finding the formalities of Japanese society and business, as well as the economy, difficult to invest in or trade with. These surpluses have begun to shrink in recent years due to the global economic crises, resulting in Japan’s trade surplus with the EU reaching a record low in 2012 of €8B . This decrease may have been the catalyst in pushing Japan even further out of it’s historically isolationist shell. The EU has not been without their own troubles having recently been accused of being protectionist on top of their acute troubles with member countries, most notably England’s serious considerations of leaving the union.
Due to an impact assessment issued by the EU and Japan in 2012, both entities have already considered the possible outcomes of a free trade agreement and the side effects are completely positive. The European Commission estimates that a successful FTA with Japan could increase EU exports to Japan by almost 30% and create 420,000 much needed jobs. Japan would increase its GDP by 0.7% and exports to Europe would grow by 24% . These results are favorable, particularly taking into consideration that trade between the two have been declining in recent years.
The EU has announced they will end negotiations if they stall after one year because “Japan does not live up to its commitments on removing non-tariff barriers.” However Japan seems intent on moving forward. The country is in pursuit of FTAs with a number of Asian countries and has entered into negotiations with Australia and South Korea. Their desire to create numerous free trade channels as well as to join the Trans-Pacific Partnership shows a real determination in Abe's government to reform Japanese business from an isolationist culture to one that accepts and promotes globalization.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| LPAT50 bearing | 50 | 75 | 100 |
| LPAT40 bearing | 40 | 62 | 80 |