ECONOMY

EU, Japan welcome deal boosting trade between two world powers

eu-japan-welcome-deal-boosting-trade-between-two-world-powers

The European Union and Japan have inaugurated a landmark deal they say will boost trade between the two economic powers and sends the message that international agreements still have a purpose in an age of increasing protectionism.

The agreement that comes into effect Friday will scrap nearly all tariffs on products both sides trade in. It will have a big impact on Japanese exports of cars to Europe and EU exports of agricultural products like cheese to Japan.

EU Commission President Jean-Claude Juncker said: “Europe and Japan are sending a message to the world about the future of open and fair trade.”

The EU and Japan account for almost a third of the world’s economy and the deal is on average expected to benefit their 635 million citizens. [AP]