Industry Trend Analysis - EU-Japan Free Trade Agreement: Initial Thoughts For Agriculture - FEB 2017

BMI View: T he EU ' s agriculture industry would be the prime beneficiary of a n FTA between the EU and Japan, due to be signed in 2017. If the FTA is approved, we will revise the growth trajectory of our EU pork and cheese production forecasts upwards . Finally, we highlight that Brexit will be of particular importance to the deal as Japan may offer favourable trade terms to EU farmers in return for concessions on the EU autos market.

The EU and Japan are looking to complete a free trade agreement (FTA) in 2017, which was initiated in March 2013. Agriculture, along with Autos, is a key industry for the deal, despite agricultural trade between the two parties being relatively limited at present. Below we examine key implications for the parties' respective agricultural industries as well as the special role of agriculture and autos in the negotiations process in the aftermath of Brexit.

Agricultural Trade: EU Is Prime Beneficiary

Japan: Net Food Importer, Market For EU Products
Japan - Self-Sufficiency For Select Commodities (%)
Note: Corn self-sufficiency is 0%. f = BMI forecast. Source: USDA, BMI

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