The EU and Japan agreed to establish the world’s largest free trade zone
The FTA will cover 600 million people and about 30% of world GDP
The European Union and Japan agreed to establish the world’s largest free trade zone. It is reported by the European true with reference to The Financial Times.
The parties agreed on the text of the economic partnership agreements to create the world’s largest open economic zone. The FTA will cover 600 million people and about 30% of world GDP.
The agreement, which was fought for four years, reducing tariffs, introducing cooperation in the area of standards and regulation, and opens up markets for public procurement.
European Commission President Jean-Claude Juncker, Prime Minister of Japan Shinzo Abe said that although the agreement has “substantial economic value”, it also has “strategic value”, demonstrating the commitment of the regions “to support the world economy based on free, open and fair markets, with clear and transparent rules.”
Juncker called the agreement a powerful political signal to the world.
“The final agreement on the agreement now paves the way for the completion of its internal procedures, to sign, ratify and implement the agreement”, – said Juncker and Abe in a statement.
However, despite the announcement, the parties have agreed on investment protection, which is the last obstacle to free trade between them. This discussion will continue in the new year.