The European Union and Japan have formally agreed to the outline of a new free trade deal. It will eventually lead to an agreement allowing free trade between two of the world’s biggest economies. There are few specific details available yet and a full and workable agreement may still take some time. The agreement is seen as a boon for the Japanese auto industry and for agricultural products from the E.U. The outline was formally signed this week in Brussels. Donald Tusk, President of the European Council, says the agreement shows the E.U.’s commitment to world trade. “We did it,” he says. “We were able to conclude political and trade talks with Japan. E.U. is more and more engaged globally.” Japan is the third-largest economy in the world and Europe’s seventh biggest export market. European Union dairy farmers have struggled with dropping domestic demand at the same time that Japan’s appetite for milk and dairy products has grown in recent years.
Even with a signed agreement in place, it will likely take up to 15 years before the agreement is fully in effect. The delay gives businesses in both areas time to adjust to increased outside competition.
Source: NAFB News Service