Japan and the European Union Sign Major Free Trade Deal


In July, Japan and the European Union signed a groundbreaking free trade deal that eliminates over 90% of tariffs on goods exchanged between Japan and European countries. Trade between the European Union and Japan represents more than 600 million consumers and is valued at approximately $150 billion, or approximately one-third of the global economy.

Notable products that will become less expensive for Japanese consumers include European cheese and wine, while prices for Japanese electronics and automobiles will drop for European consumers.

The new free trade deal sends a message about how other countries might approach global trade in the future.

“At a time when protectionist measures are gaining steam globally, the signing of the Japan-EU deal today will show the world once again our unwavering political will to promote free trade,” said Toshimitsu Motegi, Japan’s Minister for Economic Revitalisation.

The free trade agreement between Japan and the European Union isn’t good news for the United States.  It will become increasingly difficult for United States companies to compete with the lower costs that will result as duties for products ex Europe are gradually lowered over the next 6 years. 

As an example, frozen potatoes from Europe within 6 years will have no tariff applied, while the United States will carry a 8.5% tariff to Japan for their potato products. Frozen Sweet Corn from Europe will enjoy a tariff free position within 6 years while the United States will carry a 10.5% tariff.

Please see link here, pages 93-94, for more line item tariff information for frozen vegetables.

As countries around the world signal interest in transitioning to free global trade, it’s unclear how the United States current and future policies will affect trade in years to come.





日本とEUの経済連携協定は、米国にとって朗報ではありません。  EU産品にかかる関税が今後6年間に徐々に下がっていくにつれ、米国企業が価格競争力を維持するのは難しくなっていくでしょう。冷凍野菜の関税に関する個別の情報は、こちらをクリックして9394ページをご覧ください。



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