Japan and the EU sign a historic FTA and send a message against US "protectionism"

40% of trade and 30% of global GDP include the new "Economic Partnership Agreement" signed yesterday by the European Union and Japan, which aims to eliminate 99% of the trade barriers that exist between the two partners over a period of five years. The pact "will send a powerful signal to the rest of the world that two of the largest economies are resisting protectionism," the representatives of the two signatory partners said in a joint statement.

References to the trade war were inevitable. the ceremony in Tokyo where, without direct criticism of Donald Trump, his approach to the subject was questioned. "While protectionism is spreading all over the world, this signature clearly demonstrates the unwavering political will of Japan and the EU to take the initiative in the world as holders of the flag of free -exchange, "said Japanese Prime Minister Shinzo Abe.

His counterpart, the President of the European Commission, Jean-Claude Juncker, said that together with the Japanese they would constitute "a common front against protectionism", thanks to the signature of the free trade agreement. exchange. "We show that we are stronger and better positioned when we work together," he added.

In the same vein, the President of the European Council, Donald Tusk, declared: a norm-based international order at a time when some are questioning it. "

Advantages

Beyond its Implications in the Current Context of the Trade War, the" Economic Partnership Agreement ", More Than the 25.9% Represented by the TPP-11 of world trade, predicts a greater dynamism for the exchanges between the two powers involved.

According to the Foreign Ministry of Japan, the agreement is expected to boost the economy by about 1%, or 5,000 trillion yen (34,739 million euros), and to add about 290,000 jobs in the country.

For its part, the European Commission estimates that block companies will save 1,000 million euros per year with the elimination of tariffs. In this way, exports from the European Union to the Asian country could increase by 13.2%, or 13,500 million euros per year.

Side and side intend in five years to dismantle the barriers that the EU applies, for example to pbadenger cars (10%), electronic devices (14%) or sake (15% ), while the Japanese would eliminate taxes levied on meat (40%), chocolate (30%), wine (15%) and cheese (40%). In addition, the archipelago will modernize the lengthy and expensive procedures to examine each variety of fruit that comes from the old continent.

After the signature, the ratification of the European Parliament and the National Diet of Japan is pending, after which it is expected that the agreement will enter into force in 2019. At the same time negotiations will continue on investment protection rules and the resolution of disputes in this area, as detailed in the press release.