EU and Japan have just created the world's largest free trade area
- 1 month ago
Japan and the E.U. have formed what would be the world’s largest free trade area.
Japan has been part of the 12 nation Trans-Pacific Partnership which was subject to President Trump’s criticism as he took seat in the White House, however the E.U. has seen it as an opportunity too good to miss, even if there were 156 votes against in the European Parliament not agreeing with the whole idea earlier today.
One also wanders how Britain's PM Theresa May must feel right now.
The E.U. trade commissioner Cecilia Malmstrom welcomed the news, “This will bring clear benefits to our companies, farmers, service providers and others,” adding “Our economic partnership with Japan – the biggest trade zone ever negotiated – is now very close to becoming a reality.”
However, with 474 votes for and E.U. lawmakers giving the green flag the only issue is now how to handle U.S. tariffs, especially on aluminium imports.
The agreement will remove EU tariffs of 10% on Japanese cars and 3% for its car parts.
Additionally, it will reduce Japanese duties of 30% on European cheeses and 15% on wines, open up service markets such as financial services, telecommunications, transport and e-commerce.
The Japanese Parliament gave the thumbs up on the deal this past Sunday and as it stands the agreement will come into force as of February 1.
Source: Smart Trend Team