It’s the world’s largest bilateral free trade deal which has been announced by both the EU and Japan.
Shinzo Abe, Japan’s prime minister and EU leaders Jean-Claude Juncker and Donald Tusk (right) have put the agreement together in response to Donald Trump’s announcement of supposed solidarity with Vladimir Putin last month.
Phew, so there’s quite a bit of tit-for-tat going on here – but in essence it means that once the deal has been ratified by both sides through their legal process, the Japan/EU trade deal will see 99% of tariffs on Japanese goods wiped out.
It could take eight years for this to become a reality as far as cars (and motorcycles go) though due to financial markets settling to absorb costs and it could mean that motorcycle prices will fall by as much as 8%. Will we in the UK see the benefits of this, once Brexit happens? Possibly, if this can be added into the no deal/some deal machinations.
Tusk said: “Politically, it’s a light in the increasing darkness of international politics. We are sending a clear message that you can count on us. We are predictable – both Japan and [the] EU – predictable and responsible and will come to the defence of a world order based on rules, freedom and transparency and common sense. And this political dimension is even more visible today and tomorrow, than two months ago and I am absolutely sure you know what I mean.”