Japan, EU sign ambitious free-trade deal
Partnership will eliminate nearly all tariffs on products
TOKYO — The European Union and Japan signed a landmark deal on Tuesday that will eliminate nearly all tariffs on products they trade.
The ambitious pact signed in Tokyo runs counter to President Donald Trump’s moves to hike tariffs on imports from many U.S. trading partners. It covers a third of the global economy and markets of more than 600 million people.
“The EU and Japan showed an undeterred determination to lead the world as flag-bearers for free trade,” Japan’s Prime Minister Shinzo Abe said at a joint news conference with European Council President Donald Tusk and European Commission President Jean- Claude Juncker.
Tusk praised the deal as “the largest bilateral trade deal ever.” He said the partnership i s being strengthened in various other areas, including defense, climate change and human exchange, and is “sending a clear message” against protectionism.
The leaders did not mention Trump by name, but they did little to mask what was on their minds — highlighting how Europe and Japan have been pushed closer by Trump’s actions.
Up to two years ago, the agreement was supposed to be the Trans-Atlantic Trade and Investment Partnership, or TTIP, between the EU and the United States. But Trump quickly let it be known that such an international agreement would not happen on his watch.
Despite relations with the U.S. seemingly sinking to new lows almost every week, the EU will make another attempt this month to mend fences, as the bloc continues to press the position that trade wars hurt all parties involved. Juncker is scheduled to visit Trump in Washington on July 25.
The agreement was largely reached late last year. The ceremonial signing was delayed from earlier this month because Abe canceled going to Brussels over a disaster in southwestern Japan.
The measures won’t kick in right away and still require legislative approval. But they will bring Japanese consumers lower prices for European wines, pork, handbags and pharmaceuticals. Japanese ma- chinery parts, tea and fish will become cheaper in Europe.
The deal eliminates about 99 percent of the tariffs on Japanese goods sold to the EU. About 94 percent of the tariffs on European exports to Japan will be lifted, rising to 99 percent in the future. The difference reflects exceptions on such products as rice, which enjoys strong political protection from imports in Japan.
Overall, European farmers will benefit, Juncker said, though European consumers will be able to more easily buy Kobe beef and Yubari melons.
The EU said the trade liberalization will help raise European exports of chemicals, clothing, cosmetics and beer to Japan. Japanese will get cheaper cheeses, such as Parmesan, gouda and cheddar, as well as chocolate and biscuits.
The imported wine and cheese could hurt sales by Japanese wineries and dairies, but Japanese consumers have historically coveted such European products.
The major step toward liberalizing trade has been discussed since 2013.
Apart from its deal with the EU, Japan is working on other trade agreements, including a far- reaching The trade agreement will bring Japanese consumers lower prices for imported European goods, and vice-versa. trans- Pacific deal. The partnership includes Australia, Mexico, Vietnam and other nations, although the U.S. has withdrawn.
Abe praised the deal with the EU for helping his “Abenomics” policies, designed to wrest the economy out of stagnation de- spite a shrinking population and cautious spending. Japan’s growth remains heavily dependent on exports.