The Trade Agreement Between Japan and the EU Shows That Global Relations Are Indeed Restructuring

While in response to U.S. President Donald Trump’s statements that the European Union is a trade enemy of the U.S., Europeans assert that they are the best friends, a certain pragmatism is indeed taking hold among them. Following the escalation of anti-European rhetoric in the form of tariffs on steel and aluminum, along with the announcement of new tariffs on automobiles, the Union has begun to rapidly work on realizing bilateral trade agreements with other partners, and the new major ‘scalp’ is Japan.

>>> Japan and the EU Sign Free Trade Agreement – Union Eliminates Tariffs on 99% of Japanese Products

Although the initial talks that began a few years ago had stalled, new momentum has been achieved thanks to America’s behavior, and in a relatively short time, the Far Eastern economic giant and the EU have managed to reach an agreement, which shows that the world is actively restructuring, no matter how much Europeans deny it and declare their immortal loyalty to their Atlantic master.

Commission President Jean-Claude Juncker, despite suffering from a severe case of sciatica that recently caused him to stumble, and European Council President Donald Tusk signed the Economic Partnership Agreement with Japanese Prime Minister Shinzo Abe at the summit between Japan and the EU on Tuesday.

>>> EU: Juncker Stumbled at the Summit Due to Sciatica, Not Alcohol

The importance of this move cannot be overstated as it represents the largest trade agreement of the European Union to date, which will create a free trade area of 600 million people.

“The agreement will eliminate the vast majority of tariffs amounting to one billion euros annually that EU companies pay when exporting to Japan and remove numerous long-standing regulatory barriers, such as those in the automotive sector. Additionally, the Japanese market with 127 million consumers will be opened for key EU agricultural products, increasing export opportunities from the EU in several other sectors. The Economic Partnership Agreement will also strengthen cooperation between Europe and Japan in numerous areas, reaffirm the joint commitment to sustainable development, and for the first time include specific obligations related to the Paris Climate Agreement,” states the Commission’s announcement. After ratification in the European and Japanese parliaments, the agreement is expected to come into force likely during the next year.

>>> The Draft Free Trade Agreement Shows EU and Japan Moving Away from American Protectionism

Although they still declaratively refuse to negotiate with China, Europeans have recently begun to quietly talk with the world’s second-largest economy, as it is extremely difficult to ignore Beijing’s offers, which have recently been willing to give preference to European companies in certain sectors of its economy to attract the EU to its side. However, a more serious rapprochement with China is still a long way off because European capitals, despite Washington’s open hostility, cannot imagine their existence without America and are likely calculating with Trump’s departure after his first term and a return to the old ways with a new administration.

If they were to decide to enter into serious talks with China about a significant opening of mutual exchange, it would undoubtedly overshadow this, the largest trade agreement with Japan to date, and would also drastically strengthen their negotiating position in relation to the U.S. However, this clearly requires a determination that current European leaders seem to lack. Regardless, the agreement with Japan suggests that global relations are changing, whether Europeans like it or not, and not in favor of an aggressively inclined U.S.