FTA EU – Japan
The perspective of EU Farmers and Cooperatives
Copa-Cogeca:
The united voice of farmers and their
cooperatives in the European Union
Daniel Azevedo - Policy Adviser Bilateral Trade Agreements
Hearing on the Role of Civil Society in the EU-Japan FTA: European Stakeholders’ Perspectives Brussels,
3rd December 2013
Index
•
Who are Copa and Cogeca?
•
Copa-Cogeca’s position on Trade
•
Agricultural trade relations with Japan
•
Divergence and Convergence
•
Key Messages
Copa-Cogeca | The voice of European farmers and their cooperatives | 2
Who are Copa and Cogeca?
Two organisations…
• Copa - representing 25 million farmers and their
families (57 EU farmers’ organisations)
• Cogeca - around 38,000 cooperatives (31 EU
agricultural cooperatives organisations)
• Copa-Cogeca have altogether 70 Member and
34 Partner Organisations
• 38 of the members are from the new Member
States
Copa-Cogeca | The voice of European farmers and their cooperatives | 3
How is Copa-Cogeca organised?
Working Parties
POCC/CCC
Copa
Praesidium
Joint Copa
and Cogeca
Secretariat
Cogeca
Praesidium
European Commission, Council of Ministers, European
Parliament, Permanent Representations, Media…
Copa-Cogeca | The voice of European farmers and their cooperatives | 4
How is Copa-Cogeca organised?
The Working Parties
• 45 Working Parties, dealing with market and policy
developments
• Prepare joint Copa and Cogeca positions
• Topics:
commodities, cooperative affairs, rural
development, biotechnology, environment,
animal health & welfare …
Copa-Cogeca | The voice of European farmers and their cooperatives | 5
How is Copa-Cogeca organised?
The Praesidium
• Composed of the Presidents of the Member
Organisations (70)
• Copa and Cogeca each have a Praesidium, Presidency
and a President:
Albert Jan Maat (NL)
Current Copa President
Christian Pèes (FR)
Current Cogeca President
Copa-Cogeca | The voice of European farmers and their cooperatives | 6
Copa-Cogeca's position on Trade
 Priority - Multilateral negotiations at the WTO
 We strongly support a deep and comprehensive free trade agreement
(FTA) between the EU and Japan.
 Public Consultation on the future of EU Japan trade and economic relations
(2010) and Joint Statement (July 2012 and November 2013).
 Common views on the role of agriculture in society. We jointly set up the
World Farmers’ Organisation and we often adopt the same approach for
WTO negotiations.
 We are looking to closely cooperate to strengthen issues that are of
common interest: traceability, GIs, animal welfare, sanitary and
phytosanitary issues.
Copa-Cogeca | The voice of European farmers and their cooperatives | 7
Agricultural trade relations with Japan
 EU has a positive trade balance with Japan and has improved recently
- €2.17 billion in 2011.
PRODUCT
Cereals (incl. feed
cereals)
Rice
Animal feed, of which:
- cereals
- high protein
Vegetables
Fruit
Fruit & veg preparations
Olive oil
Butter & butter fats
SMP
Cheese & curd
Milk & milk products
Sugar
Wine
Pigmeat
Poultrymeat
Raw tobacco
Other products
TOTAL
Export (value Import (value
in € million) in € million)
Balance (value in €
million)
107
0
34
22
9
34
5
135
115
21
11
221
29
2
607
777
29
12
66
2,182
106
0
31
22
6
34
5
130
115
21
11
221
29
2
606
777
29
11
64
2,170
1
1
2
0
2
0
0
4
0
0
0
0
0
0
1
0
0
1
2
12
 Japan as a small supplier - EU imported €12 million
in 2011 in comparison with €52.6 billion of all imports
from third Countries
 EU Exports towards Japan - amounting to €2.2
billion, i.e. 4.9% of total EU-27 agricultural
exports
 EU - offensive in the agricultural chapter
 Looking for the same market access as our main
competitors
Table 1: Trade flow between the EU and Japan in millions of Euros in 2011
Copa-Cogeca | The voice of European farmers and their cooperatives | 8
Agricultural trade relations with Japan
Preparations of fruits and vegetables are the
most important Japanese products entering
the EU market, followed by protein crops.
EU exports to Japan:
-
-
pigmeat for €777 million (Japan is the second
biggest buyer of European pigmeat after Russia),
wine for €607 million
cheese for €221 million.
Mostly products that are not in competition with
the local production
Top imports (left) from and exports (right) to Japan in 2011 – in million euro Own elaborations on Eurostat-ComExt data
Copa-Cogeca | The voice of European farmers and their cooperatives | 9
The agriculture in Japan
1965
Rice (ha)
Dairy (head)
Beef cattle (head)
Pig (head)
Farm size, 1965-2005
1975
0.58
3.4
1.3
5.7
1985
0.60
11.2
3.9
34.4
0.61
25.6
8.7
129.0
1995
0.85
44.0
17.5
545.2
2005
0.96
59.7
30.7
1 233.3
Rice - Japan is highly self-sufficient for rice and rice production.
Livestock - Production of livestock products, has grown strongly (beef and pig)
Fruits and vegetables - These products are produced by business-oriented
farms. Exports of these products have increased by 60% in recent years, and
this growth is expected to continue.
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EU-Japan convergence/divergence on agri-food
 Japan is a developed economy, its market has strong purchasing
power
 Net importer of certain agricultural goods – agri-food more
important than raw materials
 Japan lifted the ban on imports of beef and beef products from
France and the Netherlands (February 2013). We expect that Japan will
extend this measure to the remaining EU countries (Ireland?).
 Same approach on high standards - Food safety, ex. traceability, GMOs
 EU - potential to export added value and processed food products.
 Japan - producing high-quality and specialised products for
domestic and foreign markets (Ex: ‘Kobe beef’).
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 Demand for meat and dairy products has increased strongly
-
affordability and westernisation of the Japanese diet;
consumption growth of between 400% and 700% in the last 40 years,
new market for Veal
 The share of farm households in rural communities has fallen
from 46% in the ‘70s to 11% in 2000.
 Agricultural policy in Japan:
- the maintenance of comparable income levels between agricultural
producers and other actors in the economy,
- maintenance of a secure food supply,
- preservation of the benefits that agriculture brings to landscapes and social
benefits, including especially for rural economies.
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Non-tariff measures
 Unanswered issues regarding SPS measures (sanitary and
phytosanitary):
- Japan does not recognise the EU as a single market
- Japan has not implemented the provisions of the WTO’s SPS agreement on
regionalisation with respect to the EU
 EU exports of processed agricultural products to Japan by up to
200% if both tariffs and non-tariff measures were abolished.
(European Commission’s Impact Assessment Report on EU-Japan Trade
Relations (2012)).
 Trade barriers typically raise costs by about 13% for EU operators trying to
penetrate the Japanese market.
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Tariffs
Tariffs
 Tariffs remain high on agricultural products. Japan's tradeweighted average tariff on European food and drink exports is 34.7%, with
several tariff peaks above 500%, while the EU's trade-weighted average
tariff is 12.4%.
 Japan applies high tariffs to some EU agricultural products (ex:
38,5% on beef and 30 % cheese).
 Pigmeat – same market access as our competitors.
 Dairy – Who is going to supply this region (Asean)?
 EU only has offensive interests in certain sectors, such as pigmeat,
cheese, wine and some cereals other than wheat.
Copa-Cogeca | The voice of European farmers and their cooperatives | 14
Wine
 Japan’s wine market - mature established
- per-capita consumption: 2.3 litres per inhabitant in 2011
 2nd largest EU agricultural export (€604 million)
 Japanese wine market accounts for 2.9 million hl (similar to
Switzerland), which is just above 1% of global wine consumption.
 Average price of a litre of EU wine imported by Japan is higher than the
average EU wine export price: €4.51/litre compared to €3.67/litre
(2012).
Copa-Cogeca | The voice of European farmers and their cooperatives | 15
Livestock
 Full tariff removal could boost EU meat exports by 13
 Pigmeat : In 2011 Japan imported €777 million of pigmeat from the EU.
- Currently, Japanese pork imports are subject to a differential duty
mechanism known as the “minimum import price system” also referred to as
the “gate price”.
Copa-Cogeca | The voice of European farmers and their cooperatives | 16
Olive oil, Dairy, Hop, Fruits and Vegetables
 Olive Oil
-
Olive oil consumed in Japan is imported.
Olive oil consumption has increased from 4,000 t in the early 1990s to 40,000 t in 2011,
and are growing
 Dairy:


In 2011, exports of cheese and milk & milk products to Japan total 221 and 29 € million
respectively.
Fruit and vegetables
In 2008 this sector represented 3% of total exports from the EU to Japan.
This amount could increase if Japan’s approval procedures to import new varieties of
fresh fruit and vegetables were shorter and more transparent.
Hop sector (not sensitive for Japan)
- In 2011, EU exported around 34 € million (Germany, Czech Republic, Slovenia)
Copa-Cogeca | The voice of European farmers and their cooperatives | 17
Rice
 Japan is the tenth largest rice producer in the world (production at around
10 million t).
 Japan is highly self-sufficient for rice
-
Quantities traded between the EU and Japan are very small and it
can be expected that this situation will not change even if Japan or the EU
lift their tariffs on rice
•
EU imports 120 t on average from Japan.
•
EU exports 116 t on average to Japan.
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Key Messages
 Both the EU and Japan are highly developed economies and major
global traders and investors.
 An EU-Japan agreement would greatly contribute to guaranteeing
that EU farmers will not be at a disadvantage compared to their
counterparts in the TPP agreement.
 Common views on the role of agriculture in society.
 Cooperation to improve SPS chapter in WTO
 Market opportunities: It would greatly benefit the EU pigmeat,
dairy, wine and olive sectors and offer EU exporters enormous
opportunities.
 Promotion programme for EU agricultural products
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Copa-Cogeca:
Defending and developing the
European Model of Agriculture
www.copa-cogeca.eu
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