It significantly reduces tariffs between the EU and Japan and paves the way for simpler and faster trade between the two, and thus an increase in volumes. The Strategic Partnership is committed to security cooperation on issues such as nuclear proliferation, regional security, international terrorism and organized crime, cybersecurity and energy and climate security. The economic agreement between the EU and Japan ultimately removes 97% of Japan`s tariffs on European products and 99% of EU tariffs. It is estimated that EU companies will save EUR 1 billion a year in tariffs they currently pay when exporting to Japan. A number of long-standing regulatory barriers, such as car exports, will also be removed. The EU and Japan share values of democracy, human rights and a market economy. Both are global players and cooperate in international forums. They are also cooperating in the regions of the other party: Japan is contributing to the reconstruction of the Western Balkans and the EU is supporting international efforts to maintain peace in Korea and the rest of Asia.  The agreement also aims to increase EU chemical exports to Japan by 22% and machinery deliveries by 16%. The agreement is expected to benefit Japan`s computer, electricity and automotive industries.
For example, EU tariffs on imports of Japanese cars, which currently are 10%, will gradually be reduced to zero. Because of the WTO`s persistent incompatibility with previous agreements, the main feature of EPAs is their reciprocity and non-discriminatory nature. These include the phasing out of all trade preferences introduced between the EU and ACP countries since 1975 and the phasing out of trade barriers between partners. To meet the test for a non-discriminatory agreement, EPAs are open to all developing countries, thus ending the ACP group as the EU`s main development partner. The EPA is a free trade agreement between the UK and Japan. The government called the agreement „historic“ and „the UK`s first trade agreement as an independent trading nation.“ The signing of the agreement should also be seen in the context of the government`s willingness to join the CPTPP – the comprehensive and progressive agreement for the Trans-Pacific Partnership. It is a trade agreement between 11 countries in the Asia-Pacific region, including Japan. The Economic Partnership Agreements are a system for creating a free trade area between the European Union and the Group of African, Caribbean and Pacific States (ACP).