EU Clears Landmark Trade Agreement with Japan

Cheaper Japanese cars and European cheese are on the way as the EU's trade agreement after the European Commission announced on April 18 that it had cleared the way for an Economic Partnership Agreement with Tokyo, New Europe reports.

The two sides have agreed on the final details of the agreement, according to EU Trade Commission Commissioner Cecilia Malmström, who appeared outwardly pleased that the bloc managed to negotiate its largest-ever trade agreement with the world's third-largest economy.

"Japan is one of the largest economies in the world. Together, the EU and Japan have 600 million people and one third of the world's gross domestic product. This agreement is extremely important for both sides," said Malmström. "It will be cheaper to trade Japanese products…for European companies, it will be easier to export to the Japanese market because custom fees will no longer apply."

EU Commission Vice-President Jyrki Katainen pointed to the benefits the agreement will grant to Finnish consumers and businesses as Japanese cars will be cheaper in the long term, while the Finnish forest industry can get a boost by being allowed into the lucrative Japanese market.

"For the forest industry, it is now easier to export wood products to Japan," Katainen said from the European Parliament in the French city of Strasbourg, where this month's plenary is taking place.

The agreement will eliminate or sharply reduce duties on agricultural products in which the EU has a major export interest by ensuring duty-free trade with processed pork meat - the EU's main agricultural export to Japan - and almost duty-free trade for fresh pork meat exports.

Tariffs on beef will be cut from 38.5% to 9% over 15 years for a significant...