Today, Friday, the Japanese – European Union trade pact entered into force and this can only be good for Japan and its citizens. Japan is now running with this pact as it is eliminating many tariffs, encouraging investment and protecting intellectual rights – this last point is a sensitive issue as the EU has been working with China to protect European firms who are losing this battle in Beijing.
After 5 years of negotiations, the treaty was signed in July 2018 and ratified in December so the trade volumes between Japan and the EU should be increasing in the coming months. Japan has been setting out on its own as the US and other countries are fading away from the old Brett-Woods System and as Ian Bremmer says, moving into a GZero world.
The elimination of tariffs will be good news for EU winemakers as wine will cost much less in Japan – shoppers will benefit on sales and of course the consumers will likely be move active. Japanese are big buyers of Italian, French and Spanish wines.
Cheeses and other foods will be cheaper as tariffs will be reduced over 16-year period. Japanese retailers have already announced that they will pass savings on to the consumer.