Japan, UAE Conclude Free Trade Negotiations

Tokyo, March 5 (Jiji Press)–Japan and the United Arab Emirates have concluded negotiations on a comprehensive economic partnership agreement for free trade, Japan’s Foreign Ministry said Thursday. The UAE will eliminate its tariffs on major finished vehicles imported from Japan within seven years of the pact’s entry into force. It is Japan’s first EPA with a Middle East country. Japan aims to capture demand in the UAE, a key Middle East nation with a growing economy. South Korea, which concluded a CEPA with the UAE before Japan, will see the UAE’s automobile tariffs abolished within 10 years of its effectuation. The South Korea-UAE pact has yet to take effect. Japanese automakers currently have the top share of the UAE’s vehicle market, while South Korean rivals are trying to catch up. The Japanese government negotiated with the UAE to ensure that there would be no difference in competitive conditions between Japan and South Korea. The proportion of tariff-free UAE products imported to Japan will rise to 99.9 pct from the current 98.7 pct in terms of value within 10 years of the CEAP’s entry into force. The rate will surge to 96.4 pct from 11.5 pct for Japanese goods to the UAE. Japanese products for which the UAE will scrap its tariffs within 10 years include steel, steel products and auto parts. Tariffs will also be removed for beef, fisheries products, soy sauce, miso and packaged precooked rice, while those on sake and “shochu” spirits will be reduced. Japan will eliminate tariffs on petroleum products, shrimp and spices from the UAE. END [Copyright The Jiji Press, Ltd.]