The recent announcement of the Europe and Japan free trade agreement has been making headlines across the globe. The agreement, which was signed on July 17th, 2018, is the largest trade deal of its kind and will remove barriers to trade and open up markets between the EU and Japan.

The agreement, officially known as the Economic Partnership Agreement (EPA), will eliminate almost all tariffs on goods traded between the two regions. This will create a huge opportunity for European and Japanese businesses to increase trade and exports across a wide range of industries.

The EPA covers a range of sectors, including agriculture, food and drink, automotive, textiles, and chemicals. Tariffs on European wines, for example, will be eliminated, as will tariffs on Japanese cars. Additionally, the agreement will provide greater access to Japanese markets for European food and drink products, such as chocolate, pasta, and cheese.

The EPA is expected to provide a significant boost to both the Japanese and European economies. It is estimated that the agreement will increase the EU’s exports to Japan by 34%, while Japanese exports to the EU are expected to increase by 29%. This will create jobs and growth in both regions.

Another key aspect of the EPA is its focus on environmental and social standards. The agreement includes commitments to uphold environmental protections and workers’ rights, as well as provisions to promote sustainable development.

The EPA is also seen as an important counter to protectionist trends in other parts of the world, such as the United States. The EU and Japan have both been affected by the Trump administration’s trade policies, which have included tariffs on steel and aluminum imports, as well as threats to impose tariffs on European cars. The EPA sends a strong message that both regions are committed to free and open trade.

Overall, the Europe and Japan free trade agreement is a landmark achievement and represents a major step forward for global trade. It is expected to create new opportunities for businesses, promote growth and job creation, and help to safeguard environmental protection and workers’ rights. As the agreement is implemented in the coming years, it will be interesting to see how it impacts the economies of both regions and global trade more broadly.