EU and Japan conclude ‘gigantic’ free trade deal

Brussels, Belgium - The European Union (EU) and Japan announced on Friday they have concluded negotiations for a giant free trade deal while ‘fighting the temptation of protectionism’, in an apparent message to US President Donald Trump.

The trade deal, which the EU called its biggest ever, must still be signed and ratified by both sides who first agreed to its broad outlines in July.

Once completed it will forge an economic zone of 600mn people with 30 per cent of global gross domestic product (GDP).

Japanese Prime Minister Shinzo

Abe hailed the imminent birth of what he called a ‘gigantic economic zone’ when he confirmed the conclusion of the negotiations for the Economic Partnership Agreement.

“Japan and the EU will join hands and build an economic zone based on free and fair rules,” Abe said in Tokyo.

Abe and European Commission chief Jean-Claude Juncker earlier said the agreement, which had been four years in the making, has ‘strategic importance’ beyond its economic value.

‘It sends a clear signal to the world that the EU and Japan are committed to keeping the world economy working on the basis of free, open and fair markets with clear and transparent rules fully respecting and enhancing our values, fighting the temptation of protectionism’, the pair said in a statement released in Brussels.

With the deal, the EU is seeking access to one of the world’s richest markets, while Japan hopes to jumpstart an economy that has struggled to find solid growth for more than a decade.

Under the deal, the EU will open its market to the world- leading Japanese auto industry, with Tokyo in return scrapping barriers to EU farming products, especially dairy.

EU officials insist that the deal will be a major boon for European farmers who would gain access to a huge market that appreciates European products.

Hailing the opening of markets, EU Trade Commissioner Cecilia Malmstroem told a press conference: “This is actually the biggest trade deal we have ever negotiated from the EU.”

Japan and the EU will join hands and build an economic zone based on free and fair rules

Shinzo Abe