TOKYO (Reuters) - Japan and the European Union are set to sign a free-trade deal on Tuesday to remove nearly all customs duties and boost market access for Japanese car makers and European food exporters.
Here are some likely winners and losers from the deal:
- Europe’s food sector is the other big winner, especially in high-quality regional specialities. Japan imposes high tariffs on imports of premium European food and drink products, including wines, cheese, chocolate, meats and pasta.
- Japanese trading house Kanematsu Corp (8020.T), beverage maker Kirin Holdings Co (2503.T) and drinks maker Asahi Group Holdings Ltd (2502.T) import wines from Europe and could see higher profits once wine tariffs fall.
- EU exports of processed food, including meat and dairy products, are expected to rise by up to 10 billion euros ($11.7 billion) once the deal takes full effect and tariffs are gradually dropped, the European Commission says.
- Japanese dairy companies such as Meiji (2269.T) and Megmilk Snow Brand Co (2270.T) will face greater competition. They are protected by tariffs of up to 40 percent on processed cheese, which will slowly be removed. Megmilk has two-thirds of the domestic market for soft cheese and could lose customers.
- Meat products were the largest single EU food export to Japan in 2017. Exporters from Denmark and Spain hope to capitalise on growing Japanese demand for speciality processed meats such as ham, salami and cured bacon.
Reporting by Stanley White; Editing by Darren Schuettler and Clarence Fernandez