Trade Deal between Japan and the European Union covers 600 million people
A Trade agreement that will probably secure the global trading system from the threat of protectionism and covers almost a third of the global economy has been signed on Tuesday by the European Union and Japan.
This Agreement will eliminate all the tariffs on nearly all goods and covers 600 million people, in fact, it will remove tariffs for exports like wine, Olive oil, and Cheese.
On the other hand, Japanese automobile makers and electronics firms will have fewer obstacles to overcome in the European Union.
The president of the European Donald Tusk, Council, stated: "largest bilateral trade deal ever."
He said in a written statement "Relations between the European Union and Japan have never been stronger, "geographically we are far apart, But politically and economically we could hardly be any closer."
This Agreement will lift the obstacles that President Trump created by implementing tariffs on many foreign goods and threading to implement even more.
According to CNN Baker McKenzie partner Ross Denton said the deal signed Tuesday sends "a very strong signal to the US Administration that the EU and Japan, two major trade partners of the US, both see the benefits of removing barriers and reducing, not increasing tariffs."
Cecilia Malmström the EU trade commissioner said that last month the US closed the door to Europe that was willing to lower its tariffs and not only that but also implemented new tariffs on Aluminum and Steel.
Another negative act by President Trump was the fact that at the start of his presidency he cancels the Trans-Pacific Partnership which was another deal that lowers tariffs for the eleven remaining signatories.
The Deal expected to start in 2019 after the approval by the lawmakers on both sides.
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