Free Trade Agreement between Europe and JapanRomuald Franck - MSc, Scrum Master
The European Union and Japan have signed a free trade agreement (FTA) that promises to boost economic growth and create new jobs in both regions. The deal, which took effect in February 2019, has been hailed as one of the world`s largest trade agreements, covering 30% of global GDP and nearly 600 million people. This new partnership is expected to bring about significant benefits for both EU and Japan economies.
One of the main advantages of the EU-Japan FTA is that it will drive economic growth by increasing trade between the two regions. The agreement aims to remove tariffs on 97% of goods traded between the EU and Japan within the next few years. This means that European companies exporting goods to Japan will be able to do so more profitably, while Japanese companies will find it easier to expand their business in Europe.
Moreover, the FTA will also break down non-tariff barriers to trade, such as customs procedures, product testing and licensing requirements. This will make it easier for businesses to trade with each other and will help to boost confidence and reduce costs, which in turn will benefit the consumers of both regions.
Another key benefit of the EU-Japan FTA is that it will increase investment and job creation. The agreement will open up new opportunities for EU and Japanese investors. The FTA also aims to create new jobs for people in both regions, particularly in sectors such as manufacturing and services.
Furthermore, the EU-Japan FTA sets high standards for labor and environmental protection, which will benefit workers and the environment in both regions. This is an important development, as it demonstrates that trade between the EU and Japan can be achieved in a way that is both socially responsible and economically beneficial.
In conclusion, the free trade agreement between the European Union and Japan is a significant development for both regions. The agreement will drive economic growth by increasing trade and investment, while also creating new job opportunities. Moreover, it demonstrates that free trade can be achieved in a socially responsible and environmentally sustainable way.