23-07-18 New trade
The European Union and Japan signed a trade pact that will remove EU tariffs of 10 percent on Japanese cars and 3 percent on most car parts.
Japanese automakers could increase their sales to Europe, where they have lagged behind European rivals. The accord is expected to benefit Toyota, Nissan, Honda, Suzuki and Mazda.
Toyota's Group's market share in the EU was 4.7 percent in the first half, data from the European industry association ACEA shows. Nissan had a 3.3 percent share while Honda had a 0.9 percent share. The three automakers have factories in Europe.
Japanese suppliers also stand to gain from the fall of a 3 percent tariff on auto parts.
The trade pact creates the world's largest open economic area. It comes amid fears that a trade war between the U.S. and China will diminish the role of free trade in the global economic order.
"There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade," Prime Minister Shinzo Abe said at a news conference on Tuesday after the signing ceremony.
The U.S. this month imposed 25 percent tariffs on $34 billion of Chinese goods to lower the U.S. trade deficit, and China quickly retaliated with an increase in tariffs on U.S. goods.
The Japan-EU trade deal is also a sign of shifting global ties as Trump distances the U.S. from long-time allies like the EU, NATO and Canada.
"We are sending a clear message that we stand against protectionism. The EU and Japan remain open for cooperation," European Council President Donald Tusk, who speaks for the 28 EU national leaders, told reporters.
Read more here
Source PN
