[ad_1]
(TOKYO) – The European Union and Japan on Tuesday signed a historic agreement that will virtually eliminate all tariffs on the products they market
The ambitious pact signed in Tokyo goes to against the actions of President Donald Trump of many US trading partners. It covers one-third of the global economy and the markets of more than 600 million people.
"The EU and Japan has shown an unwavering determination to lead the world as a flag bearer of free trade," Abe said at a joint press conference with the President of the European Council, Donald Tusk and the President of the European Commission, Jean-Claude Juncker. He said the partnership was strengthened in a variety of other areas, including defense, climate change and human exchanges, and that he was "sending a clear message" against protectionism.
The leaders did not mention Trump by but they did little to disguise what they had in mind – pointing out how Europe and Japan were brought closer by Trump's actions .
The agreement was largely concluded last year. The signing ceremony was delayed earlier this month because Abe canceled his departure for Brussels following a disaster in southwestern Japan, caused by extremely heavy rains. More than 200 people died from floods and landslides.
The measures will not be applied immediately and still require the approval of the legislator. But they will bring Japanese consumers to lower prices for European wines, pork, handbags and pharmaceuticals. Japanese machine parts, tea and fish will become cheaper in Europe.
The agreement eliminates about 99% of tariffs on Japanese products sold to the EU. About 94% of tariffs on European exports to Japan will be lifted, reaching 99% in the future. The difference reflects exceptions on products such as rice, which enjoys strong political protection against imports into Japan.
Overall, European farmers will benefit, but European consumers will be able to buy Kobe beef and famous Yubari melons more easily.
The EU said trade liberalization will help increase European exports of chemicals, clothing, cosmetics and beer to Japan. The Japanese will get cheaper cheeses, such as Parmesan, Gouda and Cheddar, as well as chocolate and cookies.
Imported wine and cheese could hurt Japanese sales and Japanese dairies, but Japanese consumers have always coveted these European products. ] The major step towards the liberalization of trade has been discussed since 2013.
Apart from its agreement with the EU, Japan is working on other trade agreements, including a cross-border agreement far-reaching. The partnership includes Australia, Mexico, Vietnam and other countries, although the United States withdrew.
Abe hailed the agreement with US to help his "Abenomics" policies, designed to wrest the economy from stagnation despite a declining population and cautious spending. Japan's growth remains highly dependent on exports.
Source link
