About the TSIA Study

About the FTA

The Trade SIA is conducted in support of negotiations of a comprehensive trade and investment agreement between the European Union and Japan. It should be completed before and no later than at the final phase of the negotiations since the results feed into the negotiations and the decision making process. 

The study provides an assessment of the potential economic, social and environmental effects resulting from trade and trade-related provisions of the agreement in the EU and Japan as well as third countries, including developing countries, and Turkey which is in a customs union with the EU. The outcome of the Trade SIA will also include recommendations to maximise the benefits of the agreement while ensuring the competitiveness of enterprises and preventing or minimising potential negative impacts. 

In essence, it has two purposes:

 •     to integrate sustainability into trade policy by informing negotiators of the possible social,
       environmental and economic consequences of a trade agreement;

 •    to make information on the potential impacts available to all actors (NGOs, aid donors, 
       parliaments, business etc.).


The Trade SIA team complements the quantitative and qualitative analysis with input from stakeholders. The objective of the consultation process is not only to ensure greater understanding and awareness among stakeholders of the Trade SIA methodology but also to increase transparency and accountability. 





[Left]: The planned structure of our consultation.

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As briefly explained in this article, the EU and Japan collectively contribute to ~30% of the global GDP. Consequently, if these two entities were to reduce existing barriers, the greater trade would have huge financial benefits.

The very reason the agreement was started is because the idea of generating more revenue in Japan is not as simple as just 'increasing trade'. For foreign investors, doing business in Japan often proves difficult due to the nature of permits, taxes and even the culture of the region; ranking Japan 114th in the world for ease of doing business - despite it being the 4th largest economy in the world.

Removing quotas, tariffs and permits required for European businesses to expand in Japan (and vice versa) is the key aim of the FTA, as it is in the interests of both economic giants to allow for greater trade and thus gain more capital than their current partnership allows.