The EU-Japan Free Trade Agreement: Benefits and Implications
The EU-Japan Free Trade Agreement (FTA) is a landmark trade deal that was signed between the European Union (EU) and Japan on July 17, 2018. This FTA is expected to create one of the world`s largest free trade areas, covering a combined GDP of around $28.5 trillion, making it one of the most important trade agreements of our time.
The agreement aims to eliminate tariffs on 97% of goods that are traded between the EU and Japan, and will also open up markets for services and investment. This means that EU companies will be able to sell goods and services to Japan more easily and at a lower cost, while Japanese companies will benefit from reduced tariffs on their exports to Europe. The FTA also includes provisions on intellectual property rights, public procurement, and dispute settlement.
There are several benefits to this FTA. First, it will help increase trade flows between the two regions, boosting economic growth and job creation. Second, it will promote competition, innovation, and productivity, as companies will have access to bigger markets and will be able to benefit from economies of scale. Third, it will strengthen the economic ties between the EU and Japan, reinforcing their partnership and long-standing relationship.
However, the EU-Japan FTA also raises some concerns. Critics argue that the agreement could lead to job losses in certain sectors, especially in industries with high levels of protection. There are also concerns about the impact of the FTA on environmental and labor standards, as well as on consumer safety and privacy. However, supporters of the FTA argue that these concerns can be addressed through careful implementation and monitoring.
Overall, the EU-Japan FTA is a significant achievement for both regions and a positive step towards global economic integration. The agreement will create new opportunities for businesses and contribute to the growth and prosperity of both the EU and Japan. As the FTA enters into force, it will be important to closely monitor its impact and address any challenges that may arise, to ensure that its benefits are maximized and shared by all.