The European Union and Japan signed the so-called Economic Partnership Agreement in Tokyo on Tuesday (17.7.2018). This is a project that allows for better trade relations and responds to the protectionist measures put forward by the President of the United States, Donald Trump.
Japanese Prime Minister Shinzo Abe, accompanied by Jean-Claude Junker and Donald Tusk, presidents of the European Commission and the European Council respectively, defined the agreement reached during a joint statement as “An ambitious trade pact between two of the world's largest economies".
Although the signing is an important step towards consolidating trade relations between the European bloc and Japan, the agreement must be approved by the national parliaments of each of the countries that make up the European Union (EU), a process that could extend until 2019.
Against protectionism
The agreement reached comes at a complex time for trade relations in the world due to the protectionist measures implemented by the President of the United States, Donald Trump, which has generated trade tensions between that country and China.
"There are growing concerns about protectionism, but I want to Japan and the EU lead the world in carrying the flag of free trade", declared the Japanese Prime Minister, Shinzo Abe.
"We are sending a clear message that we are against protectionism. EU and Japan continue open to cooperation," said the President of the European Council, Donald Tusk he added during his statement.
When the agreement is fully implemented it will allow the establishment of one of the largest eating areasciatheCurrently, the two economies account for 40% of global trade and 30% of the world's Gross Domestic Product (GDP).
Business improvements in data
According to data released by the European Commission, trade between Japan and the EU currently accounts for around 86.000 millones de euros and generates 600.000 jobs in the 28 member states of the European bloc.
In this sense, thanks to the agreement, This will allow free trade for 91% of imports from the European Union to Japan, and this will rise to 99% when the signed agreement is fully implemented.
Sectors benefited
There are several economic sectors that are waiting to increase sales after the signing of the agreement. One of them is the branch of manufacturers of automobiles and auto parts from Japan, which hopes to increase its sales.
In this regard, the EU will eliminate 10% tariffs on imports of Japanese cars, while it will do the same with the 3% rate that must be paid on auto parts from the Asian country.
The producers European agricultural are the ones that benefit the most from the rapprochement. This sector hopes to capitalize on the demand for high-quality cheese, chocolate, meat and pasta in the Asian nation.
Source: Reuters
Today is a historic moment for our#EUJapan partnership.
We sign the EU-Japan Economic Partnership Agreement – a landmark moment for #EUtrade ?? @JunckerEU @AbeShinzo https://t.co/U8oAu5FGQP—European Commission?? (@EU_Commission) July 17, 2018
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
