Japan finally seals a deal with the EU
Japan has finalised a free trade deal with the European Union, which will enable the seamless delivery of the movement of goods and services, providing a boost to both economies with the notion of tariff-free trade, eradicating current barriers.
Due to come into force at the beginning of 2019 the agreement will guarantee a significant boost to Japan’s prominent automotive sector, in addition to the EU’s focus on farming, with Japan’s growing interest in dairy products, according to the BBC.
The president of the European Council, Donald Tusk, said: "We did it. We concluded EU-Japan political and trade talks. EU is more and more engaged globally."
"Although some are saying that the time of isolationism and disintegration is coming again, we are demonstrating that this is not the case." The deal will cover affect over 600 million citizens, accounting for a third of the global economy. A separate deal will also incorporate a focus on combating climate change, cybersecurity and terrorism.
Additionally, the deal will focus on the implementation of lowered duties on European cheeses, which will be eradicated after 15 years, as well as chocolate and pasta after 10 years. Additionally, tariffs on wine will be eliminated, as well as tariffs on Japanese sake and green tea.
Most importantly, the EU will steadily phase out tariffs on Japanese automobiles and electronics, which will increase competition within Europe as Japanese goods flood the market.
The deal comes as recent events, such as Brexit and Trump’s ‘America First’ policies placing an increased focus of protectionism, rather than globalisation, especially with the US’ withdrawal from the COP21 and Trans-Pacific Partnership. The agreement will therefore cement the EU and Japan, increase trade between the two countries and ensure the seamless movement of goods in these areas.