Trade Sustainability Impact Assessment of the Free Trade Agreement between the European ...

229 Pages·2015·3.27 MB·English

by  European Commission

Trade Sustainability Impact
Assessment of the Free Trade
Agreement between the
European Union and Japan
Interim Technical Report

Prepared by LSE Enterprise Ltd
June – 2015
This report was commissioned and financed by the European Commission. The information and
views set out in this report are those of the author(s) and do not necessarily reflect the official
opinion of the Commission. The Commission does not guarantee the accuracy of the data included
in this study. Neither the Commission nor any person acting on the Commission’s behalf may be
held responsible for the use which may be made of the information contained therein.
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EUROPEAN COMMISSION

EUROPEAN COMMISSION
Directorate-General for Trade
Directorate C — Asia and Latin America
Unit C.1 — Far East
Contact: Timothée Sautter
E-mail: [email protected]
Directorate-General for Trade
Trade Sustainability Impact Assessment
2015 EUR [number]EN
Trade Sustainability Impact
Assessment of the Free Trade
Agreement between the
European Union and Japan
Interim Technical Report

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EUROPEAN COMMISSION

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Luxembourg: Publications Office of the European Union, 2014
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Directorate-General for Trade
Trade Sustainability Impact Assessment
2015 EUR
[number] EN
TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................ 6
LIST OF ABBREVIATIONS .................................................................................. 8
LIST OF TABLES ............................................................................................. 11
LIST OF FIGURES ........................................................................................... 13
EXECUTIVE SUMMARY .................................................................................... 14
1 INTRODUCTION: THE CONTEXT OF THE INTERIM REPORT ............................ 16
2 ECONOMIC ANALYSIS .............................................................................. 18
2.1 Introduction ................................................................................... 18
2.2 Baseline ......................................................................................... 18
2.3 Expected outcomes ......................................................................... 51
2.4 Roadmap to complete the economic analysis ...................................... 57
3 SOCIAL ANALYSIS ................................................................................... 59
3.1 Introduction ................................................................................... 59
3.2 Baseline ......................................................................................... 59
3.3 Analysis of the expected outcome ..................................................... 68
3.4 Impact analysis ............................................................................... 73
3.5 Case Studies................................................................................... 76
3.6 Roadmap to complete the social analysis ............................................ 86
4 ENVIRONMENTAL ANALYSIS ..................................................................... 88
4.1 Introduction ................................................................................... 88
4.2 EU–Japan Timber Trade Case Study .................................................. 88
4.3 Case Study on the fisheries trade ...................................................... 97
5 SECTORAL ANALYSIS ............................................................................. 106
5.1 Business services and financial services sector analysis ...................... 106
5.2 Motor vehicles sector ..................................................................... 113
5.3 The other transport equipment sector .............................................. 127
5.4 Food, feed and tobacco (processed foods) ........................................ 133
5.5 Pharmaceutical and medical devices sectors ..................................... 147
5.6 Methodology of selection of the other services sector as 8th
sector analysis .............................................................................. 157
6 STAKEHOLDER CONSULTATIONS ............................................................. 164
6.1 Overview of progress achieved ........................................................ 164
6.2 Implementation of consultation plan ................................................ 165
6.3 Roadmap of future consultation activities ......................................... 174
GENERAL REFERENCES ................................................................................. 180
ANNEX 1. SECTOR SELECTION SURVEY .......................................................... 185
ANNEX 2. QUESTIONNAIRE ON SOCIAL, HUMAN RIGHTS AND
ENVIRONMENTAL IMPACTS ..................................................................... 186
ANNEX 3. AGENDA FOR ROUNDTABLES .......................................................... 194
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EUROPEAN COMMISSION
ANNEX 4. LATEST NEWSLETTER TO STAKEHOLDERS ........................................ 204
ANNEX 5. WEBSITE SCREEN SHOT ON-GOING ACTIVITIES ............................... 205
ANNEX 6. OVERVIEW OF COMMENTS RECEIVED FROM STAKEHOLDERS IN
THE SECTOR SELECTION SURVEY ............................................................ 206
ANNEX 7. SUMMARY OF COMMENTS AND ACTIONS TAKEN ................................ 212
ANNEX 8. LINKS BETWEEN INTERNATIONAL TRADE, CORE LABOUR
STANDARDS AND THE DECENT WORK AGENDA ......................................... 215
ANNEX 9. EU AND JAPANESE COMPLIANCE WITH THE ILO CORE LABOUR
STANDARDS AND THE DECENT WORK AGENDA ......................................... 219
ANNEX 10. THE JAPANESE PROTECTION REGIME IN THE PORK SECTOR ............. 223
ANNEX 11. PORK: SCENARIOS FOR PARTIAL LIBERALIZATION .......................... 225

Directorate-General for Trade
Trade Sustainability Impact Assessment
2015 EUR
[number] EN
LIST OF ABBREVIATIONS
AVEs Ad-Valorem Equivalents
BASA Bilateral Aviation Safety Agreement
CARMA Carbon Monitoring for Action
CFP Common Fisheries Policy
CGE Computable General Equilibrium
CJK China-Japan-Korea FTA
CLS Core Labour Standards
CTIA Comprehensive Trade and Investment Agreement
DWA Decent Work Agenda
EASA European Aviation Safety Agency
EC European Commission
EEZ Exclusive Economic Zone
EGS Environmental Goods and Services
EU European Union
EU KLEMS Productivity in the European Union: A Comparative Industry
Approach (EUKLEMS2003)
FDI Foreign Direct Investment
FET Fair and Equitable Treatment
FLEGT Forest Law Enforcement, Governance and Trade
FTA Free Trade Agreement
FTAAP Free Trade Area of Asia-Pacific
GGI Green Goods Initiative
GHG Greenhouse gas
GIs Geographical Indications
GPA Government Procurement Agreement
ICJ International Court of Justice
IEA International Energy Agency
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EUROPEAN COMMISSION
ILO International Labour Organisation
IMF International Monetary Fund
IOE International Organisation of Epizotics
ISDS Investor-state Dispute Settlement
JCAB Japan Civil Aviation Bureau
LMDI Log Mean Divisia Index
LSE London School of Economics and Political Science
MEAs Multilateral environmental agreements
MFN Most Favoured Nation
NTMs Non-trade measures
OECD Organisation for Economic Co-operation and Development
OIRA US Office of Information and Regulatory Affairs
PEI Environmental Performance Index
PEM PanEuroMed
PPC Plant Protection Council
PR Performance Requirements
RCB Regulatory Cooperation Body
RCF Regulatory Cooperation Forum
RCA Revealed Comparative Advantage
RCEP Regional Comprehensive Economic Partnership
RoO Rules of Origin
SITC Standard International Trade Classification
SME Small and Medium Enterprise
SPS Sanitary and Phytosanitary
STRI World Bank Services Trade Restrictiveness Index
TAC Total Allowable Catches
TAE Total Allowable Efforts
TiSA Trade in Services Agreement
Directorate-General for Trade
Trade Sustainability Impact Assessment
2015 EUR
[number] EN
TPP Trans Pacific Partnership
TRIPS Agreement on Trade-Related Aspects of Intellectual Property
Rights
UN United Nations
UN COMTRADE UN International Trade Statistics Database
UNCTAD United Nations Conference on Trade and Development
UNIDO United Nations Industrial Development Organisation
VPA Voluntary Partnership Agreements
WB World Bank
WIOD World Input-Output Database
WITS World Integrated Trade Solution
WTO World Trade Organisation

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