A new era for the EU and Japan, the champions of global free trade and multilateral agreements, has begun. A landmark event that will change the global economic landscape has taken place.
The EU and Japan signed a massive free trade deal at the 25th EU-Japan Summit on July 17 in response to recent geopolitical developments. The parties sent what they are calling a “clear message” against protectionism. The Economic Partnership Agreement (EPA) will provide a powerful impetus to the economic growth of its signatories and also set the standards for their other trading partners.
The Comprehensive Economic and Trade Agreement between the EU and Canada (CETA) took effect in September 2017. The eleven remaining TPP partners, including Australia, Mexico, and Vietnam, signed the agreement, which has been renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in March, leaving the US on the sidelines. The deal applies to a market of nearly 500 million people. America could be a big loser, forgoing a boost to its GDP of 0.5% (worth $131bn). If those eleven join the EU-Japan agreement, the world will drastically change.