EU strikes trade deal with Japan

World
Europe

By CGTN’s Elena Casas

The European Union and Japan are on course to sign a trade agreement on Thursday, which would give both parties better access to core industries such as cars, machinery and agriculture.

The EU forecast trade between the two could increase by a third, boosting the EU economy by 0.8% and Japan's by 0.3% over the long term.

The EU exports over 80 billion euros (90.6 billion US dollars) of goods and services to Japan every year. according to European Commission’s data, with quintessentially European delicacies, especially in high-quality regional specialties like wines and cheese, being increasingly popular among gourmet fans in Japan.

VCG Photo

“They love Grana Padano, they love Parmigiano Reggiano, they love Italian cheese, and the business it develops. They love to recognize the quality. That’s really important to them,” said Attilio Zanetti, CEO of Zanetti Formaggi.

But some European food, cheese in particular, is currently subject to a 30 percent tariff in Japan, along with heavy tolls on other agricultural products.

The dairy lobby has high hopes that the agreement will end the trade barriers.

“We are looking forward to a tariff-free environment in exporting cheese to Japan, especially as Japanese annual cheese consumption is now a bit above two kilograms per inhabitant," said Alexander Anton, the secretary general of the European Dairy Association. "So there is a real market opportunity for growth, especially for well-known European cheeses like Parmigiano or Camembert de Normandie.”

An Italian chef (R) cuts up samples from a parmesan cheese to serve to visitors at the food exhibition in Chiba, suburban Tokyo, Japan. /VCG Photo

The economies of the EU and Japan combined make up for an immense 28 percent of global output, creating one of the largest trade pacts ever proposed.

More than 600,000 jobs in the EU are linked to exports to Japan and Japanese companies employ more than half a million people, forming an integral part of the EU’s economy.

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