In today`s globalized world, free trade agreements have become an integral part of international trade. Recently, the European Union and Japan signed a free trade agreement that aims to remove tariffs on goods and create new opportunities for businesses and consumers. This agreement is expected to bring significant benefits to both parties, boosting economic growth and promoting trade liberalization.
The free trade agreement between Japan and the European Union was signed on July 17, 2018, after four years of negotiations. This agreement is considered one of the world`s largest free trade agreements, covering about one-third of global GDP and a market of over 600 million people. The agreement eliminates tariffs on 99% of all goods traded between the two regions.
The agreement provides a range of benefits for businesses and consumers. For Japanese exporters, it means easier access to the European market, which will help boost their exports. The removal of tariffs on Japanese cars and car parts is expected to make Japanese cars more competitive in Europe. For EU companies, the agreement opens up new opportunities in Japan, which is the world`s third-largest economy.
The agreement also includes provisions on intellectual property rights, public procurement, and regulatory cooperation. It sets high standards for labor and environmental protection, ensuring that the benefits of free trade are shared broadly. The EU and Japan have committed to implementing the agreement in a way that respects their obligations under the Paris Agreement on climate change.
The free trade agreement between Japan and the European Union will also have a positive impact on consumers. It will help lower prices by reducing tariffs on goods such as food, wine, and luxury goods. Consumers will have access to a wider variety of products, which will promote competition and encourage innovation.
The agreement is an important step in promoting free trade and liberalization, at a time when protectionism is on the rise. The EU and Japan have sent a strong message to the world that they believe in the benefits of open markets and free trade. The agreement will also help strengthen the relationship between the two regions, which share common values and principles.
In conclusion, the free trade agreement between Japan and the European Union marks a significant milestone in promoting free trade and liberalization. It provides a range of benefits for businesses, consumers, and the economies of both regions. The agreement is a testament to the strength of the relationship between the EU and Japan and their commitment to open markets and free trade.