EU and Japan sign free trade deal
Both sides hope wide-ranging agreement will act as counterweight to Trump’s protectionist forces

Japan and the European Union have signed a wide-ranging free trade agreement that both sides hope will act as a counterweight to the protectionist forces unleashed by US President Donald Trump.
Reuters described the trade pact, which creates the world’s largest open economic area that accounts for about a third of global GDP, as “ambitious”, and a “sign of the shifting global ties as Trump distances the United States from long-time allies like the EU, Nato and Canada”.
Once ratified by parliaments on both sides, the deal will eliminate about 99% of tariffs on Japanese goods, including 10% on Japanese cars. It will scrap Japanese duties of 30% or more on EU cheese and 15% on wine, as well as securing access to large public tenders in Japan.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
This will be particularly beneficial to Europe’s food sector, which will be able to capitalise on Japanese demand for high-quality products, with EU officials estimating it could boost the bloc’s overall economy by 0.8% over the long term.
Following the signing ceremony, Japanese Prime Minister Shinzo Abe, said: “There are rising concerns about protectionism, but I want Japan and the EU to lead the world by bearing the flag of free trade”.
This sentiment was echoed by European Council President, Donald Tusk, who told reporters the deal sent a “clear message that we stand against protectionism”.
Appearing as a united front, Abe, Tusk and European Commission President Jean-Claude Juncker “sought to establish themselves as the flag-bearers of the free world, in response to Donald Trump’s show of apparent solidarity with Vladimir Putin in Helsinki on Monday”, reports The Guardian.
It comes as part of a wider EU strategy to secure long-term permanent trade deals with Asian markets in a bid to counter the increasingly protectionist policies of the US.
EU accords with Singapore and with Vietnam are at the ratification stage, while deals with Indonesia, Australia and New Zealand are being negotiated.
The EU and China also issued a communiqué on Monday affirming the commitment of both to the multilateral trading system.
It is not clear, as yet, whether the UK will benefit from these deals as it looks to secure its own post-Brexit trading relationships.
Both Japan and the EU have rushed through negotiations in the hope the deal could come into force before the UK leaves the bloc in March next year.
Japan’s ambassador for international economic affairs, Yoichi Suzuki, said earlier this year that if an EU-Japan deal were in force in the UK during the Brexit transition phase, it would buy Japan more time to establish a separate trade deal with Britain.
However, The Independent says “experts have previously suggested the UK would struggle to better the terms of the EU-Japan deal in any negotiations on its own”.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
June 25 editorial cartoons
Cartoons Wednesday's cartoons include war on a loop, the New York City mayoral race, and one almighty F-bomb
-
How generative AI is changing the way we write and speak
In The Spotlight ChatGPT and other large language model tools are quietly influencing which words we use
-
How long can Nato keep Donald Trump happy?
Today's Big Question Military alliance pulls out all the stops to woo US president on his peacemaker victory lap
-
'Tariff stacking' is creating problems for businesses
The Explainer Imports from China are the most heavily affected
-
Mortgages: The future of Fannie and Freddie
Feature Donald Trump wants to privatize two major mortgage companies, which could make mortgages more expensive
-
Pocket change: The demise of the penny
Feature The penny is being phased out as the Treasury plans to halt production by 2026
-
The Japanese salarymen with a side hustle as cheerleaders
Under The Radar 'Suited and booted' Cheer Re-Man's cheer squad are 'injecting high-flying excitement' into Japan's business world
-
The UK-US trade deal: what was agreed?
In Depth Keir Starmer's calm handling of Donald Trump paid off, but deal remains more of a 'damage limitation exercise' than 'an unbridled triumph'
-
Trump vs. China: another tariff U-turn?
Today's Big Question Washington and Beijing make huge tariff cuts, as both sides seek 'exit ramp' from escalating trade war
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
How the US bond market works – and why it matters
The Explainer Donald Trump was forced to U-turn on tariffs after being 'spooked' by rise in Treasury yields