EU and Japan will establish world’s biggest free-trade zone in 2019, in rebuke to ‘tariff man’ in Washington
- Japan had been part of the Trans-Pacific Partnership that Donald Trump rejected on his first day in office, turning Tokyo’s focus to other partners
- The EU has also looked elsewhere after negotiations with the US stalled in 2016. It concluded an updated trade deal with Mexico earlier this year
The European Union and Japan will launch the world’s largest free-trade zone early next year after their economic partnership cleared a final hurdle on Wednesday.
Some 70 per cent of European Parliament lawmakers backed the agreement that binds two economies accounting for about one-third of global gross domestic product and signals their rejection of protectionism.
Although they have agreed to start separate trade talks with the US, both face trade tensions with Washington and their steel and aluminium producers remain subject to US tariffs imposed by US President Donald Trump.
EU Trade Commissioner Cecilia Malmstrom said the deal would bring clear benefits to EU companies and farmers. Japan’s parliament approved it on Saturday.
“If all goes well, it should be able to enter force on February 1,” she said. “The agreement is not only sending a signal to the world. It is also extremely advanced when it comes to opening markets.”
Japan had been part of the 12-nation Trans-Pacific Partnership (TPP) that Trump rejected on his first day in office, turning Tokyo’s focus to other potential partners.