Europe and Japan near trade deal as U.S. takes protectionist path
The European Union and Japan are close to sealing one of the largest trade agreements ever, a deal that could further isolate the United States as President Donald Trump forges a protectionist path.
The deal, which brings together two giants encompassing a quarter of the world’s economy, would be a potent symbol of free trade during a time of populist backlash over globalization.
The agreement would give both parties better access to core industries like cars and machinery, while laying down new rules for resolving investment disputes and removing structural barriers to trade, according to a partial draft of the agreement obtained by the New York Times.
The deal, which is expected to be signed in the coming weeks, also reaffirms the two powers’ commitment to the Paris climate accord, abandoned by the Trump administration this month.
The draft deal showed a softer stance on environmental issues, such as illegal timber and overfishing, compared with other recent trade negotiations like a stalled Pan-Asian pact that involved the U.S. and Japan. The approach has raised concerns that a retreat from the trade arena by the United States is damping the willingness of other countries to tackle contentious topics.
The European UnionJapan trade talks could still hit last-minute stumbling blocks. Any deal must be ratified by national and some regional parliaments across the European Union and by the Japanese Legislature.
Foreign Minister Fumio Kishida of Japan is preparing to complete the final details with Cecilia Malmström, the European trade commissioner, and a deal could be announced as early as next week, according to Japanese broadcaster NHK.
The European Commission would not comment on the document. In an emailed statement, it said, “The negotiators are now in permanent contact at all levels to conclude an agreement as soon as possible.”
“In the current international environment, an ambitious EU-Japan deal would send a powerful signal to the rest of the world that two of the largest economies are resisting protectionism and that openness to trade and investment remains one of the best tools to harness and shape globalization and create more economic growth and jobs,” the statement said.