Japan and the EU sign a trade agreement to eliminate almost all tariffs

Japanese Prime Minister Shinzo Abe (center) shakes hands with European Council President Donald Tusk while European Commission President Jean-Claude Juncker (right) signs an agreement with the Prime Minister .

TOKYO, Japan – 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. "The EU and Japan have shown unwavering determination to lead the world as a flagship of free trade," Abe said at a joint press conference with China. The President of the European Council, Donald Tusk, and the President of the European Commission, Jean-Claude Juncker

Mr. Tusk called the agreement "the most important bilateral trade agreement ever concluded". The executives did not mention Trump by name, but they did little to hide what they had in mind, highlighting 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 percent of tariffs on European exports to Japan will be lifted, reaching 99 percent in the future. The difference reflects exceptions on products like rice, which enjoys strong political protection against imports into Japan.

Overall, European farmers will benefit, but European consumers will be able to buy more succulent Kobe beef and famous Yubari melons.

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.

In addition to its agreement with the EU, Japan is working on other trade agreements, including a large cross-border agreement. scale. The partnership includes Australia, Mexico, Vietnam and other countries, although the United States withdrew.

million. Abe hailed the agreement reached with the EU to help its "abominable" policies bring the economy out of stagnation despite a small and cautious population. expenses. Japan's growth remains highly dependent on exports. / cbb

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