Post on 26-Jul-2020
EU – JAPAN EPA
“Trade in Services, Services
Domestic Regulations and
Mutual Recognition Agreement”
1
This presentation has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA and bears no legal standing.
2Managed by Under the supervision ofwww.eu-japan.eu/epa-helpdesk
A. EU & Japan Trade in Services: Facts & Figures
B. The Services chapters and annexes
C. Market access Pillar
(incl. Public procurement in services)
D. Regulatory disciplines and cooperation
E. Movement of natural persons
F. Mutual recognition of qualification
G. Protecting Public services and policies
Table of Content
IMPORTANCE OF TRADE IN SERVICES IN THE EU-JAPAN TRADE RELATIONSHIP
21% 79%63.7%
36.3% of EU exports to Japan = Services
60759
34652
EU Exports to Japan – 2017 – Mio€- %
Goods Services
36.3%
Total: 95 411 Mio€
68874
18307
Japan Exports to EU – 2017 – Mio€- %
Goods Services
Total: 87 181 Mio€
21%
A. EU & Japan Trade in Services: Facts & Figures
3
19,06020,246
24,97624,656 25,567
29,18431,576
34,652
34,200
14,194
15,585 15,54814,572 14,953 16,284
18,455 18,30719,305
3,973
3,975
4,6166,305
6,… 7,8648,483 8,428
8,231
2,875
4,188
3,155 3,061 3,2053,685
4,2524,862
6,026
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010 2011 2012 2013 2014 2015 2016 2017 2018
(Mio € - 2010-2017)
EU Exports EU Imports UK Exports UK Imports
EU and UK Trade in Services with Japan
Source: Eurostat bop_its6_det.
IMPACT OF BREXIT:
UK = 24% of EU Exports of Services; and 31.2% of EU Imports!
EU Surplus:
+14 895
€Mio
+79.4% in 9
years
A. EU & Japan Trade in Services: Facts & Figures
4
EU Exports of services to Japan per countries (Extra EU) –
€Mio – 2018
8231.6
54575368
3935
1981
142412891175.21005
996738
582.7471.6 302
250.6175.8
122.28577.6
4136.6
2523.2
23.1
19.918
40
1000
2000
3000
4000
5000
6000
7000
8000
9000
Source: Eurostat bop_its6_det.
UK Exports represent + 25% of
EU Export of services to Japan!
A. EU & Japan Trade in Services: Facts & Figures
5
69
4
41
4.8
48
65
.9
41
61
.7
10
1.7
73
7.9
63
88
28
17
52
20
.2
76
94
.8
29
4.2
10
5.2
16
7.9
36
9.8
41
62
16
02
.5
22
.2
19
1.6
30
97
.1
35
49
.4
72
9.4
53
78
.8
20
.7
61
.3
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
EU Services Exports and Imports to Japan per sectors
(2018 - € Million)
Source: Eurostat 2019 – Note: Other business services comprise mainly: research and development, professional and management consulting services, technical,
trade-related services.
Exports - Total 34 200 – Imports - Total: 19
305
22.5% of Exports
14.2 %12.1%
18.7%
15.2%
7.4%
A. EU & Japan Trade in Services: Facts & Figures
6
7
EU Exports and Imports to Japan per sectors
“Other business services” - (2018 - € Million)
22
21
.1
46
0
92
.9
66
9.1
54
4.2
23
.1
52
9.8
13
7.2
4.2
18
5.8
28
1.9
30
40
.5
13
46
.3
10
7.1
31
.8
55
3.6
45
0.7
4.3
27
3.6
55
6.9
7.8
40
8.2
53
2.5
11
31
.9
-400
100
600
1100
1600
2100
2600
3100
A. EU & Japan Trade in Services: Facts & Figures
7
Benefits of EU-Japan EPA for Services Sectors
• Binding of current regulatory practice = increase legal certainty from WTO GATS Level (1995), and build on TiSA and TPP negotiations
• Transparency on Domestic regulation and licensing procedures• Independent regulators, universal services, etc.• Process for Mutual recognition of qualification of professional
services• Use of negative approach = more transparency for businesses, who can
easily find out what they cannot do in Japan• Increase access to Japan Public Procurement for EU services providers• Opens up services markets, in particular
• Financial services, . Telecommunications, • Postal and express delivery, . Distribution services,• Professional services, and . Transport services
A summary of the results of the EPA for the services sectors
B. The Services chapters and annexes
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 8
CHAPTER 8 = TRADE IN SERVICES, INVESTMENT LIBERALISATION AND ELECTRONIC COMMERCE
• SECTION A : General provisions• SECTION B : Investment liberalisation • SECTION C : Cross-border trade in services • SECTION D : Entry and temporary stay of natural persons • SECTION E : Regulatory framework
• SUB-SECTION 1 : Domestic regulation (Incl. MRA Qualifications) • SUB-SECTION 2 : Provisions of general application• SUB-SECTION 3 : Postal and courier services• SUB-SECTION 4 : Telecommunications services• SUB-SECTION 5 : Financial services• SUB-SECTION 6 : International maritime transport services
• SECTION F : Electronic commerce
WHAT’S IN THE EU-JAPAN EPA FOR SERVICES?
B. The Services chapters and annexes
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 9
Annex 8Annex 8-A Regulatory cooperation on financial regulationAnnex 8-B Schedules for chapter 8
Annex 8-B I Reservations for existing measuresAnnex 8-B II Reservations for future measuresAnnex 8-B III Business visitors for establishment purposes, intra-corporate transferees, investors and short-term business visitorsAnnex 8-B IV Contractual service suppliers and independent professionals
Appendix IV Limitations of business activities of contractual service suppliers and independent professionals in Japan
Annex 8-C Understanding on movement of natural persons for business purposes
444 pages out of 1570 pages total of EPA = 28% of the text of EPA= on Services issues
B. The Services chapters and annexes
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 10
Bidding level for EU & Japan before EPA = GATS 1995
Scheduling of Market access & National Treatment commitments using a
Negative list (2nd time for the EU)
GATS +; TiSA+; CP TPP+
More Commitments on Mode 1 (Cross border transactions)
Mode 3:Removal of all equity caps, with negotiated exceptions
Binding of current practise (i.e. Higher Market access than in existing FTAs),
with negotiated exceptions,
Standstill and Ratchet Clause (to lock in the autonomous reforms)
More commitments on Professional & Business services, Environmental
services, energy related services, on financial services & insurance, postal
and express, transport services, etc.
But not much improvements for the professional services!
C. Market access pillar
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 11
Adoption of a strong Horizontal Chapter on Disciplines for Domestic Regulation
(Chapter 18 of JEEPA):
Transparency of the regulation
Prior consultation of stakeholders
Impact assessment
transparency of the licensing requirements and procedures (Contact Point,
Proportionate to the goal, Clear Objectives, least burdensome administrative
costs as possible, short and predefined delays, “reasonable fees”, right of
appeal)
Sector specific disciplines (e.g. on Telecoms, on Postal, on Energy, Environment,
maritime and air transport, financial services, etc.) and Sector specific regulatory
cooperation (living agreement)
Disciplines on State Own Enterprises (SOEs)
Japan and EU active in the on-going WTOJoint Statement Initiative in WTO
D. Regulatory disciplines and cooperation Pillar
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 12
• A key priority for EU businesses in EU-Japan EPA• Temporary period only, not permanent migration• Negotiate faster Business Visa and Work permits delivery procedures:
Visa facilitation (Sensitive in EU – Competence- allowing spouses to work – a premiere!)
• In all Categories of Natural Persons Covered under Mode 4:1) Intra-Corporate Transfers (ICT)
• Managers• Specialists• Graduate Trainees
2) Business Visitors (BV) 3) Contract Service Suppliers (CSS)
(Employees of Juridical Persons)4) Independent Professionals (IP)
E. Movement of Natural Persons
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 13
• The Commission and Canada Federal government have found a way to go forward. AFramework Agreement in CETA describes the modalities how MRAs on sector specificprofessional qualifications, once concluded by the private sector together with the“licencing bodies”, will finally be transformed into the binding International treaty (FTA), bybeing annexed to the CETA.
• The European and Canadian architects have already agreed on their Recommendations foran MRA, which is now under scrutiny by the MRA Committee of CETA.
• A similar approach has been included into EU-Japan FTA, but the text is much less precise.There are no specific “Guidelines for the sectors”. And no specific “MRA Committee”, butthe “Committee on Trade in Services, Investment Liberalisation and Electronic Commerce”(Art. 22.3)
• Article 8.35 states that “Each Party shall encourage the relevant professional bodies in itsterritory to provide joint recommendations on mutual recognition to the Committee”.
• “Where the requirements are satisfied, the Committee shall establish the necessary stepsto negotiate, through their competent authorities, of a mutual recognition agreement.”
F. MRAs on Professional qualification
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of 14
Nothing in JEEPA prevents governments and local public authorities from regulating in the public interest, including fordelivering public services, or adopting measures to protect or promote Japanese and European cultures.
Services of General Interest and Public Services like Heath Services, Social services, Education services, and Waterdistribution services have not been negotiated in CETA.
EU applies 3 layers of protection on these various public services in its commitments taken in trade agreements (WTO orBilaterals) :
1. “Services supplied in the exercise of the government authority” are excluded form trade deals (ex: Defence, Police,Justice et Public Administration).
2. Public Monopolies and concessions:
“In all EC Member States services considered as public utilities at a national or local level may be subject to publicmonopolies or to exclusive rights granted to private operators.”
A Explanatory Note specifies that: “Public utilities exist in sectors such as (…) environmental, health, transportservices (…)
3. For Public services in competition with private services (schools, universities, hospitals): Difference betweenestablishments “privately funded” and those “receiving public funds”. E.g. Are considered as « public » schools whereteachers are civil servants (payed by the State), hence, excluded from commitments.
Managed by www.eu-japan.eu/epa-helpdesk Under the supervision of
G. Protecting Public services and policies
15
16Managed by Under the supervision ofwww.eu-japan.eu/epa-helpdesk
INFORMATION SOURCES
Eurostat website: Eurostat bop_its6_det.
DG Trade website on Japan:
https://ec.europa.eu/trade/policy/in-
focus/eu-japan-economic-partnership-
agreement/
17
This presentation has been prepared with the sole purpose of simplifying the understanding of
some parts of the EU-Japan EPA and bears no legal standing.
Thank you for your attention
Pascal Kerneis – Managing Director
European Services Forum
QUESTIONS ?