Japan and European Union reached a deal on
new bilateral economic partnership agreement on Wednesday. Tariffs will be
removed in 90% of all goods in trade between both regions, which occupies 30%
of whole gross domestic products in the world. Suffering from abrupt retreat of
United States under the leadership of President Donald Trump, Japan and E.U.
worked hard for establishing new free trade framework to contain unilateral
move of U.S.
Japan and E.U. started their negotiation in
April 2013. Being afraid of Japanese automobile or European agricultural
projects, the both regions have been insisting on each interest, making slow
progress in the negotiation. The greatest driving force was a sense of losing
momentum for free trade framework by unilateral trade policy of Trump
administration. After reaching overwhelming agreement with European
Commissioner for Trade, Cecilia Malmström, Japanese Minister for Foreign
Affairs, Fumio Kishida, praised in his press conference the achievement as
something which had been unable to reach.
In the last moments of the negotiation,
Japan required removal of tariffs on automobile and its parts, while E.U.
demanded open market for agricultural products such as cheese or wine in France
or Italy. Japan accepted new low-rated tariff for annual 30 to 60 thousand tons
on soft cheese like Camenbert, which would be reduced from 29.8%. Tariff on
wine, which has been ¥93 in maximum for a bottle, would be abolished. Tariff on
pork meat or pasta would also be reduced or abolished.
E.U. made compromises in cars or other
products. Tariff on Japanese cars, which had been 10%, will be abolished within
seven years. 90% of car parts or Japanese sake will immediately be free from
tariff. Japan-made television like Panasonic will also be sold without tariff
in Europe within five years. Since they still have some checkpoints out of
tariff, it will take one year to activate the deal.
Japan and E.U. stood together to show their
protest against protectionism led by Trump administration, which had walked out
of Trans-Pacific Partnership immediately after the inauguration. As the chair
of Group of 20 summit meeting later this month, Germany wanted obvious
achievement for anti-protectionism. Japan also hoped to maintain momentum for
free trade pacts, having promoted TPP negotiation against domestic protests.
Suffering from steep decline of popularity after a bitter defeat in the
election of Tokyo Metropolitan Assembly, Prime Minister Shinzo Abe also wanted
clear achievement in diplomacy. Internal political uneasiness including Brexit
surely encouraged the deal.
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