Pay based on use Get Started Purchase a Team or Enterprise subscription for per week You will be billed per month after the trial ends<doc-sep>The European Union and Japan are signing a widespread trade deal that will eliminate nearly all tariffs, seemingly defying the worries about trade tensions set off by President Donald Trump's policies. The signing in Tokyo on Tuesday for the deal, largely reached late last year, is ceremonial. It was delayed from earlier this month because Japanese Prime Minister Shinzo Abe cancelled going to Brussels over a disaster in southwestern Japan, caused by extremely heavy rainfall. More than 200 people died from flooding and landslides. European Council President Donald Tusk and European Commission President Jean-Claude Juncker, who arrived Monday, will also attend a gala dinner at the prime minister's official residence. Both sides are heralding the deal, which covers a third of the global economy and more than 600 million people. Prices of European wine and pork will fall for Japanese consumers. Japanese machinery parts, tea and fish will get cheaper for Europe. The deal eliminates about 99 percent of the tariffs on Japanese goods to the EU, but remaining at around 94 percent for European imports into Japan for now and rising to 99 percent over the years. The difference is due to exceptions such as rice, a product that's culturally and politically sensitive and has been protected for decades in Japan. The major step towards liberalising trade was discussed in talks since 2013 but is striking in the timing of the signing, as China and the US are embroiled in trade conflicts. The US is proposing 10 per cent tariffs on a $200bn list of Chinese goods. That follows an earlier move by Washington to impose 25 per cent tariffs on $34bn of Chinese goods. Beijing has responded by imposing identical penalties on a similar amount of American imports. Besides the latest deal with the EU, Japan is working on other trade agreements, including a far-reaching trans-Pacific deal. The partnership includes Australia, Mexico, Vietnam and other nations, although the US has withdrawn. Japan praised the deal with the EU as coming from Abe's "Abenomics" policies, designed to wrest the economy out of stagnation despite a shrinking population and cautious spending. Japan's growth continues to be heavily dependent on exports. By strengthening ties with the EU, Japan hopes to vitalise mutual direct investment, fight other global trends towards protectionism and enhance the stature of Japanese brands, the foreign ministry said in a statement. The EU said the trade liberalisation will lead to the region's export growth in chemicals, clothing, cosmetics and beer to Japan, leading to job security for Europe. Japanese will get cheaper cheese, such as Parmesan, gouda and cheddar, as well as chocolate and biscuits. Japanese consumers have historically coveted European products, and a drop in prices is likely to boost spending. Japan’s ambassador for international economic affairs, Yoichi Suzuki, previously said it was "a very high priority that [the deal] enter force before the end of March 2019,” referring to the date when Britain is set to leave the EU. The European Commission had also hoped the deal could come into force before Brexit after a signing by leaders this month - an ambitious deadline based on past experience. If the deal does enter into force before Brexit, it could apply automatically to Britain during a post-March 2019 transition period of around two years. Otherwise, it might not. Suzuki said at a meeting in Brussels earlier this year that, if an EU-Japan deal were in force in the UK during the Brexit transition phase, it would buy Japan more time to establish a separate trade deal with Britain. Experts have previously suggested the UK would struggle to better the terms of the EU-Japan deal in any negotiations on its own. AP, Reuters<doc-sep>EU governments on Friday threw their weight behind a free trade deal with Japan, paving the way for the agreement to be signed next week at a bilateral summit in Brussels. The deal will be the biggest free trade accord ever signed by the European Union. The agreement will unite around 600 million people, representing about one-third of global trade. EU officials said the accord would lead to the removal of all but a handful of tariffs between the two sides and aimed to boost economic growth and job creation. Responding to earlier criticism from consumer protection groups, Brussels insisted the deal would not result in the deregulation and privatization of public services such as water management and waste water treatment. Bucking the trend? The deal, which comes at a time when US President Donald Trump is spearheading an "America first" agenda, "sends a very powerful signal against protectionism and for the rules-based international order," an EU official told the DPA news agency on condition of anonymity. The US has imposed higher tariffs on steel and aluminum imports. Washington is now mulling a similar move for the automotive sector, with the EU and Japan to suffer considerably from higher duties on cars. EU member states also approved the signature of a strategic partnership agreement with Japan to boost cooperation in a range of areas including security, defense against cybercrime, energy and climate change mitigation. hg/jd (dpa, Reuters)<doc-sep>The European Union (EU) and Japan have signed a trade deal that promises to eliminate 99 percent of tariffs that cost businesses in the EU and Japan nearly €1 billion ($1.17 billion) annually. Japanese Prime Minister Shinzo Abe said the deal "shows the world the unshaken political will of Japan and the EU to lead the world as the champions of free trade at a time when protectionism has spread." According to the European Commission, the EU-Japan "Economic Partnership Agreement" (EPA) is the largest trade deal ever negotiated by the EU and will create a trade zone covering 600 million people and nearly a third of global GDP. Read more: Trump's tariffs: When does a trade spat become an actual trade war? Abe met with European Commission President Jean-Claude Juncker and European Council President Donald Tusk in Tokyo on Tuesday to sign the EPA at the 25th EU-Japan Summit. The agreement was supposed to have been signed during an EU-Japan summit in Brussels last Wednesday, but the meeting was canceled by Abe due to the recent flooding disaster in Japan. The result of four years of negotiation, the EPA was finalized in late 2017 and is expected to come into force by the end of the current mandate of the European Commission in autumn 2019. The EU has called the agreement "highly ambitious and comprehensive." The total trade volume of goods and services between the EU and Japan is €86 billion. After signing the deal, Tusk said: "We are sending a clear message that we stand together against protectionism." "Together we are making, by signing this agreement, a statement about free and fair trade, we are showing that we are stronger and better off when we work together," added Juncker. Watch video 03:35 Could Japan get pulled into a trade war with the US? "The EU and Japan share a common vision for an open and rules-based world economy that guarantees the highest standards. We are sending a message to other countries about the importance of free and fair trade, and of shaping globalization," EU Trade Commissioner Cecilia Malmström said after the agreement was finalized in 2017. High expectations for agriculture EU agricultural exports are expected to experience a boost from the EPA, as Japanese tariffs on cheese, wine and pork will be eliminated. According to the Commission, exports of processed foods could increase by up to 180 percent. The Thünen Institute, a German agriculture think tank, said it expects a heavy increase in pork and poultry exports from the EU to Japan. The EPA will also open the Japanese market for more EU-based services and give EU developers access to Japanese public infrastructure projects, such as railroads. The EU estimates that 600,000 jobs in Europe are related to trade with Japan. Read more: EU says US risks $294 billion hit over auto tariffs The agreement is also expected to increase chemical exports from the EU to Japan by 22 percent and mechanical engineering shipments by 16 percent. The Japanese computer, electric and automobile industries are all expected to benefit from the deal. For example, EU import tariffs on Japanese cars, currently at 10 percent, will gradually be reduced to zero. German companies clearly interested "The free trade agreement will infuse a new dynamic for business relations on both sides," said Marcus Schürmann, director of the German Chamber of Commerce in Japan (AHK Japan). Since last year, AHK Japan has been observing growing interest from German companies that want to enter the Japanese market, either through partners or with their own subsidiaries in Japan. This includes sectors that were previously closed for German investment along with well-established sectors for German business like engineering, automobiles, pharmaceuticals and chemical production. The AHK estimates that there are around 12,000 German companies currently doing business in Japan. "This number could grow by double-digit percentage points in the next few years," said Schürmann. A signal in favor of free trade The EU and Japan also see the signing of the deal as a signal against US President Donald Trump's protectionist trade policies. Prime minister Abe views free trade as a driver of Japanese economic growth. "Japan is pressing on the accelerator of globalization," Schürmann said, adding that in response to growing protectionist tendencies, the East Asian nation is pushing for more instead of less global cooperation. In fact, Japan was the main driver behind the completion of the revised Trans-Pacific Partnership (TPP) free trade agreement this spring, after Trump pulled the US out of the deal, agreed upon by his predecessor Barack Obama's administration. After that move, the EU and Japan also accelerated their negotiations. The European Commission (EC) has also rejected warnings from consumer advocates about higher drinking water prices and forced privatizations of public services. The national and local authorities retain their prerogative to keep public services in public hands, the EC stressed, adding that the agreement will not lead to deregulation and privatization of water and sanitation. Rather, Japan and the EU want to meet the highest standards of work, safety, environmental and consumer protection, the EC said.<doc-sep>
The European Union's largest ever trade deal has been signed with Japan. The landmark agreement, which took five years to negotiate, covers 600 million people, a third of the world's GDP and will increase trade and investment in the two markets as well as reducing prices for consumers. The presidents of the European Council and the European Commission, Donald Tusk and Jean-Claude Juncker, were in the Japanese capital of Tokyo on behalf of the 28 EU member states for the signing ceremony. Image: Mr Abe shows off the deal with Mr Juncker and Mr Tusk A joint statement released with the Japanese government afterwards said: "Today marks a historic step as we celebrate the signing of a highly ambitious trade agreement between two of the world's largest economies. "In giving full effect to this agreement, the EU and Japan are sending a powerful message to promote free, fair and rules-based trade, and against protectionism. "The agreement will also deliver sustainable and inclusive economic growth and spur job creation. "The agreement demonstrates to the world - and to our citizens - that free, fair and rules-based trade remains an important tool to promote prosperity in our societies and globally. "Furthermore, the EU and Japan will continue their negotiations on investment rules." Image: Mr Abe shakes hands with Mr Tusk, who hailed the agreement Mr Juncker described the deal as a "win-win". "Today's signature of the EU-Japan Economic Partnership Agreement is a landmark moment for global trade," he said. "It brings together economies that account for a third of the world's GDP and are home to over 600 million people." The complex negotiations which have culminated in the deal began with talks back in 2013. The consequence will be the removal of tariffs and cheaper goods for consumers. Please use Chrome browser for a more accessible video player Juncker: US tariffs are 'unacceptable' At the moment, EU companies pay €1bn (£890m) of duty on products they export to Japan. Almost all of these tariffs will now be removed and 95% of tariffs the other way will also be wiped out. These companies - including UK firms until Brexit - export nearly €60bn (£53bn) of goods and €28bn (£25m) of services to Japan. According to the European Commission, the new deal has the potential to increase these exports by a quarter. For consumers in the EU and Japan, the deal means products from each other's markets will be cheaper, with duties to be scrapped on items as diverse as cheese, wine and cars. Japanese car makers will see an immediate elimination of the up to 4% tariffs currently in place for 90% of Japanese car parts - and all tariffs on cars will be eliminated within the next seven years. Image: Japanese car maker Honda is one of the world's biggest The deal sends a blunt signal to President Donald Trump that the two parties clearly see the benefits of removing trade barriers at a time when the US is declaring a trade war with the EU and China. In a pointed message, Mr Tusk said: "The real risks to our economy, jobs and prosperity are political uncertainty, tariff war, unpredictability, irresponsibility and aggressive rhetoric. Not free trade agreements." "With the largest bilateral trade deal ever, today we cement Japanese-European friendship. Geographically, we are far apart. But politically and economically we could hardly be any closer. With shared values of liberal democracy, human rights and the rule of law." Please use Chrome browser for a more accessible video player Trump threatens to stop trading Commenting on the deal, Ross Denton, of the global law firm Baker McKenzie, said that both Japan and the EU had compromised to produce a significant new partnership. "Both sides have granted concessions to the other (eg Japan on agriculture, and EU on cars), and come up with a balanced outcome that will give world trade a significant boost at a time of marked uncertainty," he said. The UK will be able to take advantage of the new deal during the Brexit implementation period, currently scheduled to end in 2020, but it will then need to negotiate its own trade deal with Japan and with the EU. Mr Denton added: "There will of course be strong pressure on the UK to replicate the EU's agreement with Japan as part of its own web of new bilateral trade agreements."