The Japan-EU trade agreement, also known as the Economic Partnership Agreement (EPA), is a historic deal signed by Japan and the European Union (EU) in July 2018. This agreement has been put into effect in February 2019 after receiving approval from both sides of the deal. The EPA aims to create a free trade bloc that encompasses nearly 30% of the world`s GDP and more than 600 million people.
The Japan-EU EPA is the world`s biggest trade deal, exceeding the Trans-Pacific Partnership (TPP) agreement in terms of economic impact. The deal involves the elimination of tariffs on 99% of goods traded between Japan and the EU over the next few years. It covers a wide range of sectors such as automobiles, agricultural products, and industrial goods.
Japan`s exports to the EU are expected to increase by around 16%, while the EU`s exports to Japan are estimated to rise by approximately 19%. The EPA also provides for the protection of intellectual property rights, improvement of market access for services, and the opening up of government procurement processes.
The Japan-EU EPA brings many benefits to both parties. It creates a level playing field for businesses in Japan and the EU, as both sides will have equal access to each other`s markets. The agreement also allows for the promotion of sustainable development, with measures put in place to protect the environment and workers` rights.
The EPA also represents a significant milestone in Japan`s efforts to expand its economic influence globally. Japan has been seeking to diversify its trade relations away from China and towards other major economies such as the United States and the EU. The EPA allows Japan to deepen its economic ties with the EU, an important market for Japanese goods and services.
The Japan-EU EPA is also seen as a countermeasure against the economic nationalism advocated by the U.S. administration under President Donald Trump. The agreement illustrates that multilateral trade cooperation can work in the face of rising protectionism and anti-globalization sentiments.
In conclusion, the Japan-EU trade agreement is a landmark deal that creates the world`s largest free trade area and promises significant economic benefits for both Japan and the EU. The agreement is a testament to the importance of multilateral trade cooperation and demonstrates the growing willingness of countries to work together towards a more open and interconnected global economy.