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EU states have agreed to conclude a new free trade agreement with Japan. The contract is expected to be signed next Wednesday at an EU-Japan summit in Brussels, said the Council of Member States. The free trade pact with the unofficial Jefta abbreviation, which has been prepared since 2013, will be the largest that the EU has ever achieved. It is expected to reduce tariffs and other trade barriers to stimulate economic growth and create new jobs.
Negotiations on the agreement were completed last December. According to previous plans, it will come into effect in the autumn of 2019 at the latest. Japan is the third largest economy in the world after the United States and China, making it an extremely attractive market for European companies. Together, the EU and Japan have more than 600 million inhabitants.
Advocates of the environment and consumers had repeatedly protested against. They fear that the agreement will lead to the deregulation and privatization of public services such as water and sanitation, which would increase the prices of drinking water and the cost of services. d & # 39; disposal. In addition, they fear that Jefta may violate European standards. They also warn of the negative effects on developing countries, which could suffer from increased competition in the new free trade zone.
Common values
Once again, the EU rejected these concerns as unfounded. The agreement recognizes common values and respect for the highest standards in areas such as labor, safety, the environment and consumer protection, according to the EU. The prerogatives of public authorities in the field of public services are maintained and no government is obliged to privatize or deregulate public services at national or local level, the Commission said. The EU also expects stronger economic growth in the EU and Japan, which will result in increased demand for products from developing countries.
The agreement also serves as a signal to US President Donald Trump, who pursues a protectionist policy. Negotiations on the planned free trade agreement between the United States and the EU, the TTIP, have been suspended since Trump took office. The US president views the FTAs critically because they believe that they put the US economy at a disadvantage.
Japan also wanted to conclude a free trade agreement with ten other countries – the TPP of the Trans-Pacific Free Trade Area. Trump, however, is opposed to these plans. Subsequently, the EU accelerated its negotiations with Japan. The Pacific Trade Agreement was concluded without the United States.
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