EU Will Start Free Trade Talks with Japan

Trade ministers from the 27 member countries of the European Union have authorized the European Commission to begin negotiations with Japan on a free trade agreement.

The ministers included several safeguards in response to vehement opposition from France, Italy and Europe's automakers. The EU can break off talks if Japan hasn't removed its non-tariff barriers on European imports. The accord must include a clause that would allow the EU to reinstate auto tariffs if it is flooded with Japanese cars or other "sensitive" goods.

The Japan Automobile Manufacturers Assn. "warmly" welcomes the decision. A pact could eliminate the EU tariffs of 10% on cars and 22% on trucks.

European automaker group ACEA declares that a free-trade deal with Japan would cost the region's auto industry 70,000 jobs. The trade group cites a Deloitte study that concluded Japan would ship an additional 443,000 vehicles to the EU by 2020 compared with 7,800-unit increase in European cars exported to Japan.

Under an eventual deal, European minicars must qualify for the same tax breaks as their Japanese counterparts, the ACEA insists. It also demands that Japan accept imported vehicles that meet EU standards without requiring additional testing.

The ACEA was unsuccessful in making a similar argument against an EU free-trade pact with South Korea that went into effect last year.