Reaction to Japan-EU free trade deal

NHK -- Jul 18

Many retailers and consumers in Japan are welcoming the free trade pact with the European Union. They are expecting it to lower prices for a range of gourmet products and provide a boost to the economy.

European wine is now taxed at about 80 US cents a bottle. That tariff will be scrapped on the day the agreement goes into effect.

One Tokyo wine shop is considering lowering its prices.

An employee at the shop says the cost of importing European wine, including French and Italian, will be lower. She adds that she expects the shop will be able to offer its wine to customers at lower prices.

But a Japanese wine industry group is voicing concerns over possible price competition.

Hiroshi Saito, the head of Yamanashi Prefecture Wine Manufacturers' Association, says wine-producing countries in Europe have long traditions and established brands. He warns that if their products become more affordable, they will pose a significant threat to Japanese producers.

Duties on many other European imports will be eliminated, including some cheeses, as well as chocolate and pasta.

Nozomu Miyajima, a representative of a cheese factory in the major Japanese dairy farming region of Hokkaido says that could cause problems. He says it will be tough for Japanese farmers, as their prices will not be competitive.

To minimize any negative impacts of the EPA, the Japanese government will initiate policies to support producers and help make them more competitive.

Experts say the EPA will also benefit exports of Japanese goods. Sake, soy sauce and green tea will no longer be subject to tariffs.

And a 10 percent levy on passenger cars will be lifted 7 years after the EPA takes effect.

Japanese officials say the changes will provide an economic boost. They calculate that it will raise Japan's GDP by about one percent and create 290,000 jobs.