Japan hikes yen-thresholds for its EPA regulated railways procurement

Japan's national railways enterprises and designated cities with public transportation enterprises have adjusted to their yen thresholds for EPA regulated railways procurement for FY2026-2027. The new thresholds will be valid until March 31, 2028

Thresholds are used to determine whether a public contract needs to be conducted under international World Trade Organization rules and also have an impact on business opportunities open to European business under the EU-Japan EPA.

The new thresholds reflect the inflationary trend of the Japanese yen of the past year and the lower exchanges rates vis-a-vis other major currencies.

Based upon the official exchange rate for the Euro currently used by the Japanese government (€1,- = ¥166,-), the thresholds railways procurement will be close to €482.000 (¥80m) for EPA-regulated railways goods and services contracts. Previous yen-denominated thresholds were ¥72m.

The new thresholds will come into force from April 1, 2026, the start of the new-fiscal year.

Higher yen-denominated thresholds for non-EPA regulated procurement were announced earlier in February.

Specific to the EPA, thresholds used for railways procurement are not yet announced and remain at ¥72m.