European Union and Japan signed an unprecedented free trade agreement in Tokyo today. The signing was delayed from last Wednesday, as Japan Prime Minister Shinzo Abe needed to give more attention to the flood in southwester Japan. It’s nevertheless a huge achievement in real terms by the two power houses after four years of negotiations. To name a few of the key points, it’s estimated that Japan GDP will be boosted by 1% with around 290k jobs created. The 10% import duty on Japan car will be dropped. And, the majority of the EUR 1B duties by European exporters will also be removed.
Abe said today that “while protectionism is spreading in the world, Japan and the European Union will take the lead as flag bearers for free trade.” European Council President Donald Tusk said “we are sending a clear message that we stand together against protectionism.”
