The EU and Japan have signed a mammoth free trade deal, creating the world’s biggest economic area, and the biggest trade agreement either has ever committed to.
The deal covers a 3rd of the world’s GDP and will act as a timely counterweight to Trump’s tariffs on trade into the US which included 25% tariffs on Chinese goods worth over $34 billion.
The early winners of the trade deal are the Japanese car market with the new Japan-EU trade deal eliminating 10% car tariffs and 3% tariffs on car parts, whilst 30% duty on cheese and 15% on wine have also been cut. EU exporters will also be keen to exploit new markets within Japan too, with strong demand for high-quality cheese, chocolate, pasta and meats.
Of the deal, Japan prime minister Shinzo Abe noted that: “There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade.”
“We are sending a clear message that we stand against protectionism. The EU and Japan remain open for cooperation,” added Donald Tusk.
