JEFTA: EU states agree to trade agreements with Japan

It is the largest free trade pact the EU has ever concluded: the agreement with Japan is intended to dismantle customs and trade barriers and send a signal to the United States.

JEFTA: EU states agree to trade agreements with Japan

The EU countries have agreed to conclude a new free trade agreement with Japan. The Treaty is to be signed at an EU-Japan summit in Brussels next Wednesday, Council of Member States said. The free trade pact, which has been prepared since 2013 with unofficial abbreviation JEFTA, will be largest EU has ever completed. It is intended to reduce tariffs and or barriers to trade in order to stimulate economic growth and create new jobs.

Negotiations on agreement were concluded last December. According to previous plans, it will enter into force at latest in autumn 2019. Japan is third largest economy in world after US and China, and thus an extremely interesting market for European companies. Toger, EU and Japan include more than 600 million inhabitants.

Environmental and consumer Protectionists had recently repeatedly protested against it. They fear that agreement could lead to deregulation and privatisation of public services such as water and sanitation – n price of drinking water and cost of waste disposal services would increase. They also fear that JEFTA European standards could be leveraged. They also warn against negative effects on developing countries that could suffer from increased competition in new free trade area.

Common values

The EU again rejected se concerns as unfounded. The agreement recognises common values and compliance with highest standards in areas such as work, safety, environment and consumer protection, says EU. The prerogative of authorities to leave public services in public sector remains intact, and no government is forced to privatise or deregulate public services at national or local level, Commission shared With. The EU also expects stronger economic growth in EU and Japan to increase demand for products coming from developing countries.

The agreement is also a signal to US President Donald Trump, who is pursuing a protectionist course in trade. Negotiations on planned free trade agreement between US and EU, TTIP, have been paused since trumps took office. The US President considers free trade agreements to be critical because, in his opinion, y discriminate against US economy.

Japan, toger with ten or countries, also wanted to conclude a free trade agreement with United States – Trans-Pacific free zone TPP. Trump, however, turned against se plans. The EU n accelerated its negotiations with Japan. The Pacific trade agreement was closed without United States.

Date Of Update: 07 July 2018, 12:02

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