After four years of talks Japan and the European Union agreed
on a free trade pact to create the world's biggest open
economic area of more than 640 million people, that accounts
for nearly one-third of the global economy. Together the EU
and Japan account for 19 per cent of global gross domestic
product and 38 per cent of goods exports. The EU-Japan
Economic Partnership Agreement is expected to spur trade
and investment by removing or lowering tariffs on a broad
range of products, including farm and industrial products,
while also setting common trade rules. The Agreement will
remove trade barriers, promote economic growth and boost
jobs.
The deal is not just about trade but about shared values and
committing to the highest standard in areas such as labour,
safety, environmental and consumer protection. As such, for
the first time such an agreement will include a specific
commitment to the Paris Climate Change Agreement.
Shinzo Abe, Japan’s prime minister, said the deal signified the
creation of “the birth of the world’s largest, free, industrialised
economic zone”. The European Commission welcomed “the
most important bilateral trade agreement ever concluded by
the EU”.
“Although some are saying that the time of isolationism and disintegration is coming again, we are demonstrating that this is not the case.”
Donald Tusk, President of the European Council
“Japan and the EU demonstrated our strong political will to raise the flag of free trade high when there are moves toward protectionism in the world. It’s a result we should be proud of and this is a powerful message to the world.”
Shinzo Abe, Prime Minister of Japan
“The EBC believes that this agreement, with a strong focus on non-tariff barriers, will deliver a huge positive effect on trade between both parties based on numerous published studies. We have always maintained that the EU and Japan have “under-traded” and that a catalyst like a trade agreement of this kind would unleash the real potential between the two economies.”
The European Business Council in Japan (EBC)
“In times when we have to argue with many about free trade, open borders, and democratic values, it's a good sign that Japan and Germany no longer argue about this but rather are seeking to shape the future in a way that benefits people. It's very good that Japan says we want a free trade agreement ... Germany would love to be a propelling driver behind the agreement coming into being. We do want open markets … we certainly don't want any barriers … we want to link our societies with one another and let them deal fairly with one another and that is what free trade is all about.”
Angela Merkel, Chancellor of Germany
“Japan wants to be the champion of upholding open systems alongside Germany”
Shinzo Abe, Prime Minister of Japan
“The EU and Japan are leading the way: free trade instead of protectionism. We [Germany] do not believe in protectionism. We want to create winwin situations. Achieving this is only possible when we cooperate and work closer together across borders - open markets are crucial for this.”
Angela Merkel, Chancellor of Germany
