EU and Japan Sign Trade Agreement Opposing Trump’s Protectionism

Japan and the European Union are set to sign a free trade agreement on Tuesday that will cover a third of the global economy, in clear contrast to the protectionist policies advocated by U.S. President Donald Trump, reports Bloomberg.

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The signing comes at a time of heightened global trade tensions, after Trump imposed tariffs on aluminum and steel imports as well as on Chinese goods and began questioning fees in the automotive industry, a move that will impact European and Japanese industries.

“We are sending a strong signal to the world that we still believe in open trade and that protectionism is never the right answer,” said European Commissioner Cecilia Malmstrom earlier this month when member states agreed to sign the agreement.

European Council President Donald Tusk and European Commission President Jean-Claude Juncker are expected to sign the agreement, along with Japanese Prime Minister Shinzo Abe, at a ceremony in Tokyo. The agreement must then be ratified by the European Parliament, which is expected in the coming months, as well as the Japanese parliament.

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The agreement, the largest ever achieved by the European Union, will unite around 600 million people across both markets. European officials hope it will come into force at the beginning of 2019.

Under the agreement, Japan will eliminate tariffs on 94 percent of all imports from the European Union, including 82 percent of agricultural and fishery products.

The European Union will remove 99 percent of tariffs on imports from Japan. It will abolish tariffs on imports of Japanese cars and trucks in the eighth year and on televisions in the sixth year of the agreement’s implementation.

The signing was originally scheduled to take place in Brussels on July 11, but was canceled following heavy rains and floods in Japan that resulted in 220 fatalities.

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The two sides will also sign a strategic partnership agreement on Tuesday aimed at strengthening cooperation on issues related to peace and security, cybercrime, energy security, and climate change.