Japan, EU to sign widespread trade eliminating tariffs

Japan and the European Union signed a wide-ranging free-trade deal on Tuesday that both sides hope will act as a counterweight to the protectionist forces unleashed by US President Donald Trump’s trade policies.

In particular, we want to see how it will help grow the economies of the participating countries by eliminating tariffs and other barriers that can inhibit trade. One of the peculiar points of common approaches to free trade, particularly where Europe is concerned is that European Union leaders are traditionally more keen on developing free trading relations with economies that are similar to those in Europe.

Europe’s food sector is one of the biggest winners from the deal, which should allow it to capitalise on Japanese demand for high-quality cheese, chocolate, meat and pasta.

Without mentioning Trump by name, Tusk made sharply clear that the agreement was intended as a counterpoint to Washington’s current trade policy.

Celebrating the formal signing of the agreement today, the European Commission for Agriculture and Rural Development issued a series of tweets on social media, highlighting the agricultural benefits of the deal.

The deal removes the 10% tariff the European Union levies on importing Japanese cars and the 3% tariff on most auto parts, Reuters reported.

EU leaders said member countries will be able to buy Japanese beef and fruit more easily, and argued European exports of chemicals, clothing, cheeses and beer will increase, the AP reported.

Japanese consumers have historically coveted European products, and a drop in prices is likely to boost spending.

“By working together, we can shape the global standards for data protection and show common leadership in this important area”, she said. China responded with retaliatory tariffs, prompting the US administration to propose on July 16 an additional 10 percent levy on $200 billion worth of Chinese exports.

The joint statement aims to demonstrate their stance of responding in unity to U.S. President Donald Trump, who has expressed his intention not to endorse the communique.

The US is proposing 10 per cent tariffs on a US$200 billion list of Chinese goods. The European bloc is also pursuing deals with Mexico, Australia, and Mercosur, the South American trading bloc that includes Argentina, Brazil, Paraguay and Uruguay.

Brussels trade teams have been scrambling to conclude a number of deals to liberalise trade around the world amid efforts by Mr Trump to impose a number of tariffs across the globe.

“The card the United Kingdom has traditionally played in Japan as being a “gateway to Europe” is a very different one to sell now”.

“It will remove the vast majority of the €1 billion of duties paid every year by companies that export to Japan”. “We are sending a clear message that we stand together against protectionism”.

While the EPA with the European Union is Japan’s largest bilateral trade agreement, the country is the largest economy to participate in the Comprehensive and Progressive Trans-Pacific Partnership, a high standard-focused multilateral trade pact that succeeds the original twelve-member Trans-Pacific Partnership that the United States withdrew from last January.