At a time when the global trade situation is tense and protectionism is rising, Japan and the European union signed an economic cooperation agreement in Tokyo on Tuesday, which will eliminate almost all tariffs and create the world's largest trade open area!
The agreement covers one third of the global economy and more than 600 million people. the agreement signed today will take effect in 2019 after being approved by the Japanese parliament and the governments and parliaments of eu member States.
Bloomberg said that under the agreement, the European union has removed about 99 % of tariffs on Japanese goods and Japan has removed about 94 % of tariffs on European union goods, which will also rise to 99 % in the next few years. The reason for this difference is rice, which is culturally and politically sensitive in Japan and has been protected for decades.
Both sides claimed to benefit from the agreement.
Japan expects the agreement to boost GDP by 1 %, or 5 trillion yen ( about 45 billion us dollars ). ) and increased about 290,000 jobs. The main purpose of Japan's trade agreement with the eu is to increase automobile exports. According to the agreement, the eu will reduce the current 10 % car tariffs to zero within eight years. Although cars and auto parts account for about one fifth of Japan's exports to Europe, Japan's share in the European market is only about 10 %, far lower than that in the United States or Asia.
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For Europe, the agreement will eliminate most of the 1 billion euro tariffs paid by European exporters each year and gradually enable European countries to expand their exports of goods and services to Japan ( reaching 58 billion euros and 28 billion euros respectively last year ). Japan is the fourth largest economy after the European union, the United States and China, but it is only the seventh largest export market of the European union. Cecilia malmstrom, European trade Commissioner, said, " according to our calculations, the eu's total export to Japan may increase by one third."
At the same time, the financial times said that according to the agreement, Japan will also enjoy the same treatment as eu member States in key areas of the digital economy - sharing and protecting personal information of hundreds of millions of Europeans.
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Japan's Ministry of foreign affairs said that by strengthening its relations with the European union, Japan hopes to activate mutual direct investment to combat the trend of global protectionism. Nikkei news analysis said that Japan's opening of agricultural products markets to the European union was a blow to American farmers, who had been hoping to pry open Japan's sealed markets.
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The south China morning post reported that the eu and Japan also hope to establish a United front to oppose U.S. tariffs on steel and aluminum. Japan said earlier that it was " regrettable" that the United States imposed tariffs on steel and aluminum.
Apart from the latest agreement with the eu, Japan is pushing for other trade agreements, including TPP and rcep. Tpp members include Australia, Mexico, Vietnam and other countries. although the United States has withdrawn, Japan is still trying its best to push forward. Recp members include 16 countries such as China, India and Japan, with a population of 3.5 billion, accounting for one third of the global GDP.
And the United States has decided to impose import duties on another 200 billion us dollars of Chinese goods! Bring great uncertainty to shipping! | the most shipping plan will hold a hearing from August 20 to August 23, and will likely take effect after the public consultation on August 30, following the path of the lampe government! It is estimated that China's export to the us line will drop by 20 % as a result!
