The trade agreement will probably secure the global trading system from the threat of protectionism and covers almost a third of the global economy.
This agreement will eliminate all the tariffs on nearly all goods between Japan and the European Union and covers 600 million people altogether. Among all products, it will remove tariffs for exports like wine, Olive oil, and Cheese.
In addition, Japanese automobile makers and electronics firms will have fewer obstacles in the European Union.
The president of the European Council, Donald Tusk, stated: “largest bilateral trade deal ever.”
He added in a written statement: “Relations between the European Union and Japan have never been stronger, geographically we are far apart, But politically and economically we could hardly be any closer.”
This Agreement comes as an opposition to President Donald Trump tariffs on China and the EU and the rising threat of trade war.
According to CNN Baker McKenzie partner, Ross Denton said the deal signed Tuesday sends “a very strong signal to the US Administration that the EU and Japan, two major trade partners of the US, both see the benefits of removing barriers and reducing, not increasing tariffs.”
Cecilia Malmström, the EU trade commissioner, said that last month the US closed the door to Europe although the Europeans ware willing to lower its tariffs. The US deepened the conflict as with the implementation of new tariffs on Aluminum and Steel.
Another negative act by President Trump was at the start of his presidency when he canceled the Trans-Pacific Partnership which was another deal that lowered tariffs for the eleven remaining signatories. The deal is expected to start in 2019 after approved by both sides.
This article was originally posted on FX Empire
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