On 17 July in Tokyo, the European Union signed a free trade agreement with Japan, which must now be ratified by the European Parliament and the Japanese Diet by March 2019 for it to enter into force.

The agreement was reached after more than four years and 18 rounds of negotiations. It is the most extensive free trade agreement signed by the European Union and represents an undoubted success for trade policy, as stated in the press release from the EU Commission.

The agreement addresses the main issue in EU-Japan trade relations, aiming not only to eliminate tariffs but also to dismantle the primary non-tariff barriers in the Japanese market and harmonise technical and regulatory standards.

Japan has committed to liberalising 86% of its tariff lines, while the European Union will liberalise 96%, figures which, at the end of the staging periods (transition periods during which tariffs are gradually eliminated), will reach 97% for Japan and nearly 100% for the European Union.

The most significant liberalisations concern public procurement, in which Japan has promised to open up the markets of medium and large municipalities as well as the railway sector, and services, including telecommunications and international maritime transport services.

Regarding Italian industry, the contents of the Agreement present numerous elements of interest, both in terms of defensive and offensive interests.

The Agreement consists of a section relating to market access issues (JEFTA – Japan-EU Free Trade Agreement) and a more general "Partnership Agreement" which aims to strengthen relations between the EU and Japan in areas such as climate change, the fight against terrorism, cyber security, immigration, and foreign policy.