European Union and Japan Sign Historic Food Trade Deal
Japan and the European Union (EU) signed a wide-ranging free-trade deal that both sides hope will act as a counterweight to the protectionist forces unleashed by U.S. president Donald Trump.
The ambitious trade pact, which creates the world’s largest open economic area, comes amid fears that a trade war between the U.S. and China will diminish the role of free trade in the global economic order.
“There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade,” prime minister Shinzo Abe said at a news conference after the signing ceremony, according to Reuters.
This month, the U.S. imposed 25% tariffs on USD34bn of Chinese goods to lower the U.S. trade deficit, and China quickly retaliated with an increase in tariffs on U.S. goods.
The Japan-EU trade deal is also a sign of shifting global ties as Trump distances the United States from long-time allies like the EU, NATO, and Canada.
“We are sending a clear message that we stand against protectionism. The EU and Japan remain open for cooperation,” European Council president Donald Tusk, who speaks for the 28 EU national leaders, told reporters.
Europe’s food sector is one of the biggest winners from the deal, which should allow it to capitalize on Japanese demand for high-quality cheese, chocolates, meats, and pasta.
Food Industry Welcomes Deal
Copa and Cogeca, the European Liaison Committee for Agriculture and Agri-Food Trade (CELCAA) and FoodDrinkEurope (FDF) welcome the signature of the EU-Japan Economic Partnership Agreement (EPA), which took place during the EU-Japan Summit in Tokyo, Japan.
“The EU agri-food chain partners see this agreement as an important step towards reinforcing the relations with one of our key trade partners, based on a shared commitment to progressive rules-based trade liberalization and cooperation to achieve mutual benefits. The EU-Japan EPA comes with high expectations, both in terms of tariff reductions and removal of non-tariff barriers to trade, which are expected to create significant opportunities for European exports of agricultural products, food and drinks,” according to a press release issued by the FDF.
The trade agreement is of strategic importance, as it will strengthen the sector’s competitive position in the dynamic and growing Asia-Pacific region. Further to the positive EU trade diplomacy efforts in Asia, this agreement will complete the picture of successfully negotiated trade agreements in the region such as EU-South Korea and forthcoming ones with Singapore and Vietnam.
It is now essential that after the signature of the EU-Japan EPA, the European Parliament support the swift and successful ratification of the agreement.
Photo source: www.voanews.com
Photo caption: Donald Tursk (left), Shinzo Abe (center), Jean Claude Junker (right)