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Japan must do more to open markets to EU goods - EU

Published 04/12/2011, 03:00 PM
Updated 04/12/2011, 03:04 PM
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BRUSSELS, April 12 (Reuters) - Japan must prove it is willing to open its markets to imports from the European Union if it wants to launch talks for a free trade pact with the bloc, Europe's top trade official said on Tuesday.

Spurred by the country's earthquake, tsunami and nuclear crisis, European Union leaders last month agreed to invite Japan to negotiate closer trade ties with Europe, the world's biggest market. But for talks to start at an EU-Japan summit in late May, Japan must first prove it is willing to dismantle rules that slow European goods entering its market and block European firms from bidding for big public works contracts, EU Trade Commissioner Karel De Gucht told EU lawmakers.

"Starting negotiations without having a clear view of what the level of ambition is, if there is really a preparedness to do something about the non-tariff barriers I don't know if it makes sense," De Gucht said.

In particular, the European Union has composed a list of 27 Japanese rules -- from cumbersome liquor wholesale licence rules to slow-moving approvals of EU food additives -- that it says hampers EU exports and wants Japan to improve or remove.

Japan has proposed solutions for three of these rules, De Gucht said.

"We've told them they should make a considerable effort ... They are working on the non-tariff barriers, but results up to now are slow," he added.

A traditional bastion of car and high-tech exports, Japan has been defending its share of the European consumer market in the face of ever stiffer competition from neighbouring economies such as South Korea and China.

The near-completion of a trade accord between the EU and South Korea has stoked Japanese fears of dwindling sales in Europe, and prompted Japan last year to request a free trade accord of its own. (Reporting by Juliane von Reppert-Bismarck; Editing by Alison Williams)

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