On November 2, the government announced details on the abolition of tariffs on the Japan-EU Economic Partnership Agreement (EPA) that reached a broad consensus in July. Japan will eliminate tariffs on around 94% of imports from the EU, roughly the same level as that of the TPP, which removes around 95%.

Meanwhile, the EU will eliminate tariffs on some 99% of exports from Japan. Tariffs on contested industrial products, such as automobiles, will be mutually abolished 100% over several years. Japan will remove duties from around 82% of agricultural, forestry, and fishery products.

Also on Nov. 2, the Ministry of Agriculture, Forestry, and Fisheries released its analysis on how domestic agricultural, forestry, and fishery products could be affected when the EPA comes into force. Among the 28 items that will face fiercer competition when tariffs are reduced or removed, domestic prices on four items–dairy, beef, pork, and lumber–are expected to fall in the long term.

Meanwhile, there is expected to be no impact on products including barley, chicken, oranges, and mackerel with limited import volumes from Europe.

Based on this analysis, the government and the ruling parties will compile measures to protect and enhance the competitiveness of domestic producers by the end of November and request the necessary funds in the fiscal 2017 supplementary budget.