AMN / WEB DESK
Japan and the European Union have signed a free trade deal in Tokyo after years of negotiations. The European Union and Japan have signed one of the world’s biggest free trade deals, covering nearly a third of the world’s GDP. The agreement was signed in Tokyo Tuesday.
The economic partnership agreement covers about 40 percent of the world’s trade and 30 percent of its gross domestic product. The EPA calls for Japan and the EU to remove tariffs on most of each other’s goods in phases, reports NHK.
Japan’s Prime Minister Shinzo Abe attended a signing ceremony with visiting European Council President Donald Tusk and European Commission President Jean-Claude Juncker.
EU Council President Jean-Claude Juncker said, they are sending a clear message that both sides stand together against protectionism.
The deal requires Japan to remove tariffs on 94 percent of products imported from the EU, while the bloc must end levies on 99 percent of Japanese goods.
The 2 sides are aiming for early implementation of the pact once they obtain parliamentary approval.
Mr Abe said, the agreement shows the world the unshaken political will of Japan and the EU to lead the world as the champions of free trade at a time when protectionism has spread.
The move contrasts sharply with actions by the US Trump administration, which has introduced steep import tariffs. Under the agreement, Japan will scrap almost all its tariffs on EU goods, particularly dairy items like cheese. The EU will also eliminate about 99 percent of its tariffs on Japanese goods, including removing levies on Japanese cars and scrapping tariffs on car parts.
The agreement must still be ratified by the EU parliament, as well as Japanese lawmakers, but is expected to enter into force from next year.