Japan, EU sign deal to axe nearly all tariffs
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 U.S. 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,” Japanese 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 is being strengthened in various other areas, including defence, 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.
The agreement was largely reached late last year. The ceremonial signing was delayed from earlier this month because Abe cancelled going to Brussels over a disaster in southwestern Japan, caused by extremely heavy rainfall. More than 200 people died from flooding and landslides.
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 machinery parts, tea and fish will become cheaper in Europe.
The deal eliminates about 99 per cent of the tariffs on Japanese goods sold to the EU. About 94 per cent of the tariffs on European exports to Japan will be lifted, rising to 99 per cent 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
The EU said the trade liberalization will help raise European exports of chemicals, clothing, cosmetics and beer to Japan. Japanese people will get cheaper cheeses, such as Parmesan, Gouda and cheddar, as well as chocolate and biscuits.
The major step toward liberalizing trade has been discussed since 2013.
Abe praised the deal with the EU for helping his “Abenomics” policies designed to wrest the economy out of stagnation. Japan’s growth remains heavily dependent on exports.