The new free trade agreement between the European Union and Japan became effective on Feb. 1, and it will have a significant impact on European shoe exports. The Economic Partnership Agreement, also referred to as Jefta, immediately eliminates over 90 percent of tariff duties on European exports, gradually increasing the tally to 97 percent, while simplifying customs procedures. When the deal is fully enforced, tariffs on industrials products will be completely erased. The Japanese quota system for leathergoods and shoes will be gradually abolished. Tariffs on shoes will be immediately cut to 21 percent from 30 percent, with the rest of the duties due to be eliminated over 10 years. Tariffs on leather products, such as handbags, will also be lifted over 10 years. The same applies for sports shoes and ski boots, products that were traditionally highly protected by Japan. Overall, European companies are expected to save €1 billion a year in duties thanks to the deal. The European Commission said that a first committee meeting with Japan will be held in April to assess the initial months of implementation. Negotiations with Japan will continue on standards and investment protection disputes, with a meeting of chief negotiators scheduled for March.

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