July 23, 2018

European Union, Japan Sign Trade Agreement To Virtually Eliminate Tariffs

While the United States continued to impose and debate new tariffs on its trading partners, the Japanese and European Union governments last week signed a trade agreement that, according to The Associated Press, “will eliminate nearly all tariffs on products they trade.” European Council President Donald Tusk called the deal “the largest bilateral trade deal ever.”

The legislative bodies in both Japan and the EU still need to approve the deal, but are expected to do so.

As soon as the deal takes effect, it will eliminate penalties on 99 percent of Japanese goods imported into the EU and 94 percent of the EU products that go to Japan. Eventually, 99 percent of EU products imported to Japan will be free from tariffs. Part of the deal will be the EU’s gradual reduction in penalties it imposes on auto imports from Japan.