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Tokyo, July 17
Japan and the European Union signed a wide-ranging free trade deal on Tuesday that both sides hope will act as a counterweight to the protectionist forces unleashed by US President Donald Trump.
The ambitious trade pact, which creates the world’s largest open economic area, comes amid fears that a trade war between the United States and China will diminish the role of free trade in the global economic order.
“There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade,” Prime Minister Shinzo Abe said at a news conference after the signing ceremony.
The US this month imposed 25 per cent tariffs on $34 billion of Chinese goods to lower the US trade deficit, and China quickly retaliated with an increase in tariffs on US goods. The Japan-EU trade deal is also a sign of shifting global ties as Trump distances the United States from long-time allies like the EU, NATO and Canada. “We are sending a clear message that we stand against protectionism. The EU and Japan remain open for cooperation,” European Council President Donald Tusk, who speaks for the 28 EU national leaders said. Japan and the EU also agreed on Tuesday to establish a regular dialogue on trade and economic policy. — Reuters
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