The European Union and Japan have reached an agreement in principle for a new free trade deal. It would lower barriers to trade between two of the world’s most important economic areas.
The European Union and Japan have reached an agreement in principle for a new free trade deal, set to lower barriers to trade between two of the world’s most important economic powers.
The Economic Partnership Agreement signed in Brussels Thursday comes after 18 negotiating rounds over four years.
It is, on its surface, “a deal easing the flow of cheese in one direction and cars in the other, ” as The Economist writes .
But it is also a statement about free trade on the eve of the G20 summit in Germany, which U. S. President Donald Trump will attend.
In January, Trump pulled the United States out of the Trans-Pacific Partnership, a major trade deal with Japan and other Pacific Rim nations.
“Ahead of the G20 summit tomorrow, I believe Japan and the EU are demonstrating our strong political will to fly the flag for free trade against a shift toward protectionism, ” Japanese Prime Minister Shinzo Abe said at a news conference, Reuters reported. “It is a strong message to the world.”
EU Commissioner for Trade Cecilia Malmstrom added that “we are demonstrating that the EU and Japan, democratic and open global partners, believe in free trade.
