‘World’s biggest trade deal’ approved
The European Parliament approved an accord with Japan that has been dubbed the world’s biggest trade deal, covering economies that represent a third of the world’s GDP.
The agreement will go into effect in February and was celebrated as a victory for Europe as a free trade champion in the face of US President Donald Trump’s protectionism and Britain’s decision to leave the European Union.
“Our economic partnership with Japan – the biggest trade zone ever negotiated – is now very close to becoming a reality,” EU trade commissioner Cecilia Malmstrom said.
Before legislators voted by 474 votes to 152 to back the deal, Malmstrom called it a symbol, a signal.
“We’re showing that for our part, we’re in favour of open, but regulated, trade,” he said.
The deal was confirmed even as British Prime Minister Theresa May defended her faltering attempt to negotiate Britain’s orderly departure from the European Union before a boisterous House of Commons.
But, ironically, some EU leaders see the wide-ranging deal they have agreed to with far-off Japan as a possible model for future commercial relations with the UK, once it formally quits the bloc.
“Everything is uncertain with the United Kingdom, but one day we’ll have to negotiate something,” Malmstrom said, predicting a British deal would go even further than Japan’s.
Covering more than 630million people and economies that add up to about a third of global output, the EU-Japan Economic Partnership Agreement has been under discussion since 2013.
When it goes into effect, it will regulate almost all commerce between the Asian giant and the 27 remaining EU economies.
BusinessEurope directorgeneral Markus Beyrer said: “Approving the EU-Japan EPA, the European Parliament delivers on what business and citizens need in a time of political and economic uncertainty.
“This agreement is projected to increase exports between the two economies by 34% for the EU and 29% for Japan, liberalising up to 99% of bilateral trade. The elimination of tariffs will save consumers and importers ß1bn (R16bn) a year in the EU and will support a substantial increase of jobs, maximising benefits for both companies and citizens.”
Once it is fully implemented, about 85% of EU farm products will be eligible for tariff free export to Japan.
Customs duties on beef, for example, will be progressively reduced, and rice will be excluded from the deal.
Tokyo has also agreed to recognise more than 200 “geo- graphic signifiers”, allowing iconic European products like Roquefort cheese, Tirolean speck and Polish “Wodka” to protect their brand value.
For their part, the Japanese will win free access to the European car market after a multi-year transition period.
With the deal, the EU is seeking access to one of the world’s richest markets.
For Japan, it hopes to jump-start an economy that has struggled to find solid growth for more than a decade.