as of today, the trade of many Goods between the EU and Japan, more cost-effective. This is because, with the entry into force of the free trade agreement be abolished for almost all products, the customs duties.
The EU and Japan form part of the present day, the largest free-trade zone in the world. It is the goal, tariffs and other trade barriers are almost completely reduce, in order to stimulate growth. Through the agreement, European companies could save every year one billion Euro in customs duties, said EU Commission President Jean-Claude Juncker. Consumers, it also offers a larger selection and cheaper prices.
Specifically, trade agreements, for example, provides for the free, that European food producers can introduce processed pig meat, but also in certain cheeses and wine duty-free to Japan. The Japanese side, however, is mainly interested in tariff reductions for industrial goods – in particular cars. On passenger vehicles from the Japanese production is currently levied a tax of ten per cent, on commercial vehicles from ten to 22 percent.
A third of global economic output
Japan is, after the USA and China the third largest economy in the world and therefore a very interesting market for European companies. Together, the EU and Japan for nearly a third of the world’s economic activity.
praise from the BDI – criticism from environmentalists
The industry Association BDI had previously praised the agreement as a milestone. “In order for Japan and Europe, contrary to the uncertain global economic Outlook, examples of market openness, high Standards and reliable trading rules,” it said. Next, the agreement would have to be decided with Singapore, and Vietnam.
environmental and consumer advocates, however, are of the opinion that the Deals are mainly the interests of large corporations and the Setting of strict Standards is much more difficult to make. For the EU trade policy, EU-Commission rejects these allegations, however. With the Japan agreement, you are committed to a common set of values and to adhere to the highest Standards in areas such as work, safety, environmental and consumer protection.
Political message
In Brussels, reference is made also to the political signal effect of the agreement. As a reason for the quick conclusion of the economic policy of U.S. President Donald Trump. This is accused by the EU and Japan, protectionist policies are to be set with the establishment of a giant free trade zone. “Europe and Japan, to send a message to the world about the future of an open and fair trade,” commented Juncker recently.
