Brussels, July 7: To establish free trade and open economy is a long-lasting dream of Japan. In last Japan – EU talk Japan could not secure the deal of free trade before G-20 summit. As differences remained over tariffs on European dairy and farm products and other sensitive issues, the agreement on free trade was out of reach. Finally bringing happy news, Japan and the European Union reached a broad agreement on a free trade deal. This is a symbol of their effort to promote an open economy.
EU and Japan were trying to reach the deal since 4 years ago. After Japan-EU trade talk, “We are almost there,” EU Trade Commissioner Cecilia Malmstrom told local media adding that a finalized deal could happen by the “end of autumn”.
Putting an end to the dilemma, Prime Minister Shinzo Abe, European Council President Donald Tusk and European Commission President Jean-Claude Juncker reached the deal in Brussels. They have a market of 640 million people.
"Amid moves of protectionism, the fact that Japan and the European Union could demonstrate a strong political commitment to raise the banner of free trade is an outcome to be proud of and a robust message to the world," Abe said at a press conference.
European Council President Donald Tusk has also said this is a message against the propaganda of rising isolationism and disintegration. Juncker upheld this agreement saying that closing off from the world is not good for business, nor for the global economy.
The parties want to reach the final agreement in next coming months. In early 2019, they want it to come into force. Both the parties are highly concerned about Trump's "America First" approach to trade as he withdrew the United States from the 12-nation Trans-Pacific Partnership free trade deal.