Japan, Switzerland ink free trade agreement

TOKYO, Feb. 19 Kyodo - Japan and Switzerland signed a free trade agreement Thursday, paving the way
for the two countries to eliminate tariffs on more than 99 percent of their
trade in value terms over the next 10 years.
The agreement, signed by Foreign Minister Hirofumi Nakasone and Swiss Economy
Minister Doris Leuthard in Tokyo, will come into effect by the end of this year
if the two countries complete necessary domestic ratification procedures as
scheduled, Japanese officials said.
It is the 11th free trade agreement signed by Japan, which has reached similar
accords with countries such as Chile, Mexico, Malaysia, Singapore, Thailand and
Vietnam as well as the Association of Southeast Asian Nations.
The latest FTA is Japan's first with a European country. It is officially
called the Free Trade and Economic Partnership Agreement, which will cover
cooperation in investment and services in addition to trade in goods.
Among Japan's economic partnership agreements, the accord with Switzerland
contains the most advanced customs procedures, allowing approved exporters to
issue certificates of origin, and includes for the first time a set of
provisions on electronic commerce, the officials said.
''We are convinced that the agreement will foster existing and new business
opportunities for the private sectors of the two countries,'' the two
ministers' joint statement said.
Japan expects the agreement to expand its exports of automobiles and household
electrical appliances to Switzerland, while Switzerland is hoping to secure
greater market access for products such as instant coffee, aromatherapy oils,
cheese and chocolate.
Currently, 76 percent of Japanese exports are subject to Swiss tariffs, but 77
percent of Swiss exports to Japan are already duty-free, with wristwatches
accounting for nearly a third of the total, according to the officials.
In 2007, Japanese exports to Switzerland totaled 355 billion yen, while Swiss
exports to Japan amounted to 613 billion yen, according to Japanese trade
statistics.
Japan and Switzerland launched FTA negotiations in May 2007.
==Kyodo