politics

Japan, EU sign massive trade deal to eliminate nearly all tariffs

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By Yuri Kageyama

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Meanwhile, in the real world:

"The two sides have agreed: (i) to phase out tariffs on hard natural cheeses like Gouda (from which processed cheese is made) as under the TPP; and (ii) for soft natural cheeses like Camembert and Mozzarella (for direct consumption), (a) not to reduce or eliminate ordinary tariffs; but (b) to phase out in-quota tariffs on cheese imported within a low-tariff-rate import quota over a 16-year period (initial tariff levels for the quota has not been made public). In other words, the EU will be able to export the set amount of cheese to Japan with low tariffs but it will have to pay the current tariff of 29.8 percent for the portion exceeding that amount. The import tariff-rate quota for soft natural cheeses will be set at 20,000 tons for the first year and increased to 31,000 tons in the 16th year. This quota is not so large. For one thing, Japan currently imports 68,000 tons of natural cheese from the EU annually, of which 18,000 tons of cheese, which is apparently of a soft type, come from France and Italy. Cheese consumption is on the rise in Japan, for another."

"An obvious loser in the latest free trade negotiations is the EU. Nothing is gained for the EU cheese producers. This is probably because EU negotiators were mostly legal experts who are incapable of economic analysis. Ignorance of economics turned out to benefit Japanese negotiators, who unwittingly won the negotiations. Another loser is Japanese consumers. The Japan-EU FTA did not live up to their expectations."

http://www.canon-igs.org/en/column/macroeconomics/20170728_4418.html

The "winners" here are clearly the Japanese car makers as the EU will reduce the current 10% tariff to zero, and the big Japanese trading houses who will rake off all the profits from the increased sales of cheese, wine and so on. The elderly, LDP supporting small farmers will continue to receive massive subsidies from the taxpayer, while it's the consumers who will get shafted as usual. This whole article is nothing more than a rah-rah piece. As someone says up the thread, nothing will change.

19 ( +20 / -1 )

Overall, European farmers will benefit, Juncker said, though European consumers will be able to more easily buy luscious Kobe beef and famous Yubari melons.

Cripes! Do the people who write this stuff get kickbacks from JA?

17 ( +21 / -4 )

To all asking about the cars, nothing will change, as there were no import tarrifs before. Toyota (and a bit less Honda) have a stronghold on the market by being able to dictate how products are to be developed and sold through the so called "guidelines", that replace proper laws. That is, practical example:

If Toyota is the first to local OEM to sell, let's say, an automatic parking system in Japan, they will write a set of "guidelines" for the regulators of such systems, and these become the facto laws. If VW, for example wants to sell a better system in Japan, they won't be able to do so if it doesn't comply 100% to Toyota's guidelines, and this usually doesn't happen. This is why VW has in Europe a much better and high tech product than it can import and legally sell in Japan. Concrete example is VW's automated parking system, that is able to drive the car forward for arranging, not only backward (a much more complicated and useful function than Toyota ever offered). VW was not able to sell this in Japan, because the Toyota's guideline never contain any provisions for the cars being switched in a forward driving gear, and the homologation offices did not allow VW's product to be homologated.

Toyota maintain this monopoly in Japan through very strong lobying (read bribing corrupt politicians), and no importer is going to break through easily. Yes, I know A LOT about this, because I work in this, believe it or not. No, this agreemet is NOT going to change this situation a bit.

For those saying that the European cars sold in USA are much cheaper, have you ever seen the junk they're selling there, when compared with the usually very high end products they sell in Japan? No? Have a second look.

12 ( +14 / -2 )

The difference reflects exceptions on such products as rice, which enjoys strong political protection from imports in Japan.

Not that there are all that many rice exporters, but the proof is in the "butter" I would say! Sadly Japan puts too much of a cultural price on it's agricultural products and any trade deal, to be truly "fair" needs to have these included as well.

Pharmaceuticals as well!

11 ( +15 / -4 )

This seems more transparent than TPP. Maybe in the end its better.

9 ( +11 / -2 )

BS !! More Smoke & mirrors. No such thing as no tariffs. Just more access and tax breaks for dirty big Companies/Cronies. Money goes to money as usual. We all get shafted

8 ( +8 / -0 )

CHEESE!!

7 ( +7 / -0 )

Remind me...how's this Brexit thing going again?

My country is going down the toilet. They've missed the boat on this deal.

7 ( +8 / -1 )

As always, Japan gets good deals. And it also serves as a good leverage in the coming talks with the USA. 

Good for EU as well, its equivalent to adding a member state that is larger than Germany.

7 ( +7 / -0 )

@ ebisen = interesting. I too was in the auto industry in Japan but didn't know that. Not surprised though

7 ( +7 / -0 )

I love the listing of things that benefit.  Like duties on Yubari melons have prevented EU citizens from buying them......

Chocolate, cheese etc.  Really?  I agree that prices on these will not go down.

"Overall European farmers will benefit"??  Like always.  Most subsidized and protected sector of EU economy.

Cars?  How many people in Japan buy (or can afford) EU made cars?  They are too expensive or not to local taste - and there is almost no duty on them, although changing them to Japanese spec does add a bit on price.

This is a typical politicians sleight of hand - looks good on paper but will have minimal impact in real life.

7 ( +7 / -0 )

just in time for the big consumption tax hike!

6 ( +8 / -2 )

Now the right is trying to pretend Trump hasn't said what he has said.

Very Trumpian. Just deny reality even when the proof is right there for everyone to see.

6 ( +6 / -0 )

99% for Japan, 94% for the EU. You watch.... nothing, zero, nil, from the EU will change. You will still be paying extra. Want the best cheese, pay more. Want a nice Audi, pay up. Handbags.... pay up. Do really think that Japan is just going to reduce prices. You watch..... an Audi R8 will still cost 30% more to buy in Japan that it does in the USA.

5 ( +17 / -12 )

Hogwash, tariffs are nothing but protectionism, so eliminating tariffs do you honestly believe the consumer is going to benefit from lower prices, dream on, only means more choice. Thats how they sell these trade deals, political maneuvering , or con job, whichever you prefer. Makes the politicians look good in the eyes of their supporters. I believe in free trade, but lets have honest prices, its all based on which part of the world you live in and what the market can support.

5 ( +5 / -0 )

The USA doesnt have to abide by a trade deal which benefits some other third party more than it benefits the USA.

It's amazing how much the right capitulates between stating that agreements MUST be abided by (when it's not the US), and stating that there is no obligation to abide by agreements (when it's the US).

Somehow they think the rest of us are too stupid to see through that.

They don't realize they just look pathetic, and the result will be more and more agreements that bypass the US altogether, as Trump has entirely destroyed the word of America, and trying to make agreements with them is a waste of time as their agreements can only be trusted as far as the current administration. And in Trump's case, not even that long sometimes.

4 ( +6 / -2 )

We can and will deal with Japan directly.

Of course you can. Just as Japan can create agreements with other countries, so that they can reduce their dependence upon trade with America to a safe level.

4 ( +6 / -2 )

The EU-Japan trade deal seems like a pretty rotten deal for the EU. No wonder, there is such dislike in Europe for the clueless EU bureaucrats in Brussels who negotiate such agreements.

The population of the EU is four times as large as Japan. Furthermore, the EU population is projected to grow, whereas the population of Japan is projected to plummet over the next 20-30 years. So, Japanese companies get free access to a huge and growing population of over half a billion people, but European companies get access to an aging Japanese population which is projected to shrink to less than 90 million in the next forty years. More than a quarter of the Japanese population is already elderly and it just gets worse from here - hardly an attractive market for European cheese and wine.

More importantly, the real problem with the Japanese market is its systematic and extremely effective system of non-tariff barriers. This, combined with the deeply embedded economic nationalism of Japanese consumers, makes Japan the most closed developed market in the world. Trade agreements are notoriously ineffective in addressing such non-tariff barriers. There is good reason why foreign retailers like Tesco and Carrefour have left Japan in recent years and why Walmart is reportedly planning to sell its Japanese unit. The EU-Japan trade agreement will not change Japan's closed distribution system and is going to do little to open the Japanese market. The EU's trade deficit with Japan will most certainly get worse. As an American, I can only hope that the U.S. does not follow the EU's example.

4 ( +7 / -3 )

Wow, now maybe I'll be able to buy a jar of British orange marmalade without having to mortgage my house.

4 ( +4 / -0 )

The article specifically mentions cheddar, but by the time this all kicks in the UK will be out of the EU.

Looks like I'll still have to rely on visits to/from the UK by family members and friends to feed my cheese habit.

And Switzerland isn't in the EU, so no chance of Lindt getting any cheaper.

(・_・、)

4 ( +4 / -0 )

can hardly wait for November now, I will drink my favorite French beujalais neuveau wine, much cheaper now than usual prices.

Pretty appropriate to toast a crappy deal with crappy wine :-)

Wonder why the article makes no mention of the fact it will take almost 2 decades for the tarrifs on a number of products to come down for the Japanese cutomers while the Europeans will drop their tarrifs much faster. J customer being shafted once again.

4 ( +4 / -0 )

Yeah I was thinking this was in direct response to Trump’s so called trade war too. I doubt prices to the consumer will decrease on anything imported, they never do. Time for a new “fee” or something to cover the difference im tariffs.

3 ( +6 / -3 )

And more nations sign trade agreements that entirely bypass the US altogether.

Trump once claimed that winning a trade war was easy. I think he once again misspoke, and meant to say losing, not winning.

3 ( +5 / -2 )

Not just trade, but finance and eventually most everything else. And it doesn't seem to matter who is president. The US has been the big kid on the block, but has become the big bully. I already know several people in business who avoid any transactions that involve the US, however marginal that involvement.

I actually still do a lot of business with the US - I like working with Americans and American companies (though you have to be very strict with them on payment - American companies don't seem to have a big problem with being late on payments). But as the American economy starts to fall apart due to a lack of agreements with countries that are willing to deal with Trump and his crap anymore, it will become financially unviable for me to continue working with them. That's not something I'm looking forward to. I've already begun preparing over the past year however by diversifying our client interests to have less dependency upon American clients. It's not their fault, but unfortunately they are the ones who will end up suffering for it. It makes me sad, as some of them have become friends as much as clients.

3 ( +3 / -0 )

Problem is that the USA produces things people need.

The US doesn't produce anything that the people need and cannot get anywhere else.

3 ( +4 / -1 )

Please mercy parcels, definatly cheese, butter, potatoes and everything else JA can't produce.

2 ( +2 / -0 )

The agreement was largely reached late last year.

So this deal literally has nothing to do with Trump's tariffs, despite what the tone of the article would have you believe.

I was actually impressed when I was under the impression they had somehow pushed this amazing deal through in a matter weeks.

2 ( +3 / -1 )

Thank you, Mr Noakes, for a professional analyses. I agree fully with you. The EU side will actually drop all tarifs on cars and spade parts While Japan will remplaceer current taxes and duties with others or complicatie import restrictions even further while keeping duty free quota ultra low. This is not a win win but a Japan ko victory and i Congratule the Japan negotiators. And by the way cheddar comes from the uk if the origin clause will aplly on the product and there is such a thing as brexit

2 ( +2 / -0 )

Great! Another nail in the coffin of Trump's crazy presidency. Keep them coming!

2 ( +2 / -0 )

Japan and the EU are both protectionist, with many restrictive trade barriers. So where is the free trade?

Someone commented without bothering to read the article.

2 ( +2 / -0 )

The EU and Japan are the last bastions of globalism. They haven’t realized that the tide has changed.

This one is really amusing but worth mentioning as this fairy tale is widespread among ignorant Americans :)

Make an attempt to enlighten yourself about the rise of globalism and the role of the US in that process. Enlighten yourself further by visiting the sites of Corporate America and AgWeb for the latest news about your exporting farmers.

2 ( +2 / -0 )

The EU retains the right to reimpose car tariffs if Japan does not eliminate non- tariff barriers in the sector. On some car components, according to the Irish Times.

https://www.irishtimes.com/business/economy/eu-strikes-free-trade-deal-with-japan-1.3145254

2 ( +2 / -0 )

Watching CNN on tv today, and Will Ripley almost bursting with excitement telling us that wines and cheeses will now "immediately be noticeably cheaper in Japan." Wow, you promise, Will? So the overpriced Japanese cheese will remain overpriced and the 1 or 2 super small EU imported cheeses will come down in price but still be overpriced, too. Awesome!

As far as the handbags (lumped in with the other named items), I will happily bet a year's salary that all the EU-based luxury retailers here in Japan (Prada, LV, Gucci, etc) will still be 25%+ higher than they are elsewhere in the world.

2 ( +2 / -0 )

Love to have Greek feta cheese (goats) more affordable

Most feta sold to tourists in Greece is produced in Denmark, Germany or the Netherlands and based on cow milk :)

and given EU people will not jump to buy JP autos given multiple other choices,

Probably never been to Europe where J cars always had an audience and a reputation that often exceeds EU made cars on for example reliability. Several plants all over the EU with the largest in the UK where they assemble J cars.

I wonder if it will trickle down to the everage momotaro or EU citizen.

It already does :)

2 ( +2 / -0 )

*"An obvious loser in the latest free trade negotiations is the EU. Nothing is gained for the EU cheese producers. This is probably because EU negotiators were mostly legal experts who are incapable of economic analysis. Ignorance of economics turned out to benefit Japanese negotiators, who unwittingly won the negotiations. Another loser is Japanese consumers. The Japan-EU FTA did not live up to their expectations."*

http://www.canon-igs.org/en/column/macroeconomics/20170728_4418.html

Obvious dated information.

It's been excellent weather in continental Europe for a few weeks now and the forecasts remains good.

Happy tourists stroll through my home city. Germans, Americans, [no red caps seen yet] the French, Italians and Japanese visit the museums and relax in the parks. Chinese tourists stroll around the warehouses and visit diamond factories, young tourists check the 'coffee shops' for homemade cannabis. The lads and lassies stay at the RLD waterholes where they are recovering of the World Cup with a pint in front. And at the end of the day many of them meet locals at iconic waterholes and conversations end up more often then in the past into politics with an idle American businessman as a favourite topic.

Bye Bye America, Konnichiwa Japan

https://global.handelsblatt.com/opinion/bye-bye-america-konnichiwa-japan-797175

https://global.handelsblatt.com/politics/eu-japan-sign-free-trade-pact-jefta-946389

Why it matters..

http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155725.pdf

A new EU trade agreement with Japan

http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155684.pdf

What's in it?

http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155724.pdf

In 20 seconds for millennials...

http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155723.pdf

2 ( +2 / -0 )

So Trump will be saying to Japan if you can do this with Europe, why can't you do it with the U.S? You can guarantee that will be the argument now and rightly so and so hopefully there can be a U.S/Japan agreement as well.

Still, this is good for Japan and Europe. I wonder what the arrangement on cars will be.

1 ( +3 / -2 )

Maybe it is time to open a specialty cheese store.

1 ( +1 / -0 )

The best deal is the United States of Northeast Asia.

1 ( +2 / -1 )

It's a good deal. It helps insulate Japan from China as well. This is the way to go.

1 ( +3 / -2 )

Abe praised the deal with the EU for helping his "Abenomics" policies, designed to wrest the economy out of stagnation despite a shrinking population and cautious spending. Japan's growth remains heavily dependent on exports.

This made me chuckle ever so slightly. So he needs the EU to help him with his utterly ineffective and delusional abenomics? That proves it wasn't ever a success to begin with if you can't do it on your own. But now he tries to use third parties to make himself look good. He's a true comedian he is.

1 ( +2 / -1 )

We can and will deal with Japan directly. yes AMerica can but now Japan doesn't need to kowtow to the US and give more concessions than they already have to the EU. The bar has been set Japan can now trade freely with the EU which combined with Japan GDP makes it larger than the US by about 10%. WHen / if the EU and China also make a FTA their combined economies will be around 50% larger than the US. Yes Trump is making the US get left behind.

1 ( +1 / -0 )

Plus, I see few things in this article that the EU is offering that Japan domestic market doesnt already have a suitable substitute. The only way these EU imports would be needed is if they are cheaper than Japanese products, and they wont be just because of decreased tariffs.

Proof is that American imports did not decrease in price when the yen went from 120 yen per dollar to 80 yen per dollar. Just increased the profit margins for the seller even further, nothing was passed on to the consumer by the fact that the seller could buy 30% cheaper due to currency fluctuation. Yet when the yen went back up to 110 yen from 80 yen, that was given as the reason for a further price increase to the consumer in all imports.

Somehow lack of tariffs will be used to keep import prices the same or increase them by using some type of illogical government thought process.

1 ( +2 / -1 )

They will give up trade concessions to avoid many times more of defense spending.

Heh, this sounds like an extension of 'trade wars are easy to win', said by someone who is quickly discovering that trade wars are not easy to win.

The reason he thinks this is because his financial advisor told him that if he put tariffs on other countries, they would not retaliate. And then we saw China, the EU and Canada all retaliate.

Yet his zealots are still trying to claim that countries will give up trade concessions, which has not been born out in reality anywhere.

Blind faith in the Cult of Trump.

1 ( +1 / -0 )

To cleo - don't worry, after your countrymen finally take back their country from the EU, they'll forge a great trade deal with the U.S.

From an American perspective maybe. For everyone else there's no such thing... and the US has little to do with Cleo's good cheese or cheap Lindt problems.

1 ( +1 / -0 )

Politically speaking, the easiest move for Trump is to go back to the TPP. 

The problem (for Trump) being that the rest of the TPP nations have no motivation to let the US in. The word of the US is only as good as its current president now, and dealing with their crap again in a few short years isn’t worth the hassles.

1 ( +1 / -0 )

people forgot to mention that Japan agreed to the EU enforcing a safeguard in case their is a surge in Japanese auto imports in Europe and also if non-tariff barriers appear in Japan for EU auto imports. So, it is fair to an extent.

1 ( +1 / -0 )

So now we have JEFTA. 

Love to have Greek feta cheese (goats) more affordable and given EU people will not jump to buy JP autos given multiple other choices, I wonder if it will trickle down to the everage momotaro or EU citizen.

The billions gained will most likely end up as share buybacks or other such industrial goodies

1 ( +1 / -0 )

don't worry, after your countrymen finally take back their country from the EU,

You mean after they succeed in cutting off their nose to spite their face. One of the stupidest moves the British electorate has ever made. Only the election of Trump stopped us being the stupidest democracy of the 21st century.

they'll forge a great trade deal with the U.S.

The UK and US can forge the greatest, bigliest trade deal the world has ever seen, it won't bring any Great British cheese or Swiss chokkies to Japan where it's needed.

1 ( +1 / -0 )

@ dmc27

The reason for writing that the link was dated [aug 2017] as that the article says 'An obvious loser in the latest free trade negotiations is the EU. Nothing is gained for the EU cheese producers.'

Clear with this agreement is that producers of 'many cheeses' like Gouda and Cheddar will gain with the tariff going to 0%.

Duty-free quota to be established for fresh cheeses (such as Mozzarella and Feta) however seems to be more align with the link brought in by Alfie Noakes.

More details needed about the cheese. So J cheese taste like plastic? Can imagine that one longs for good and affordable cheese as an expat, but coming from a cheese country I'm not so curious about cheese when visiting Japan. The 'Bulgari' is excellent imo. See what I'll find on gov links here.

1 ( +1 / -0 )

The UK and US can forge the greatest, bigliest trade deal the world has ever seen, it won't bring any Great British cheese or Swiss chokkies to Japan where it's needed.

Nor Lancashire crumbly, Eccles cakes and black pudding.

1 ( +1 / -0 )

So hopefully you can get your favorites in J supermarkets and shops in the near future at reasonable prices. Cheers :)

1 ( +1 / -0 )

Where does government make up loss of income?

0 ( +2 / -2 )

If this is so great then why is the US GNP per capita so much higher than these two mighty economies?

0 ( +4 / -4 )

So the trade deal between EU/Japan includes defense. This should be of much relief to the US. America can now pull out of Japan and leave the defense of Japan to the EU.

There is no truly free trade as long as restrictive, many hidden, trade barriers remain in place. These trade barriers are to hinder imported goods and drive up the cost. These restrictive trade barriers are more detrimental to fair trade than the tariffs themselves.

0 ( +5 / -5 )

Which is the purpose of bilateral trade agreements. The USA doesnt have to abide by a trade deal which benefits some other third party more than it benefits the USA. We can and will deal with Japan directly.

And more nations sign trade agreements that entirely bypass the US altogether.

0 ( +3 / -3 )

Tusk said the partnership is being strengthened in various other areas, including defense.

I would like to read more as to how the EU is going supply defense to Japan and as to how Japan is going to supply defense to EU.

0 ( +2 / -2 )

Which will never happen due to Japan also being reliant on the USA for military protection.

Which has nothing to do with trade deals. The US is in Japan because it's a strategically advantageous location for the US. They aren't going to jeopardize that for Trump's silly trade wars.

Guaranteed that the USA will get a better bilateral deal with Japan than the EU did.

What exactly are you basing that guarantee on? I'm seeing nothing.

0 ( +0 / -0 )

You do know that Trump asked the same exact thing (of no tariffs) at all to the G7 members, right? They wouldnt agree to it.

Um, yeah, they don't live in a vacuum. Why would anyone agree to anything from Trump - America has no credibility anymore. Trump has shown that any agreement with America is only as good as the current administration. And he has shown he has zero interest in creating deals that benefit both parties, he just wants to create new agreements that screw everyone else.

0 ( +1 / -1 )

Trump is a GENIUS. He makes enemies out of EU nations, thus creating a pathway for his friend Abe. Win-win. Trump gets to put America first and Abe gets support from EU.

Trump is a fool BUT there is certainly an argument to be made that his rhetoric forces the E.U to live up to its potential on defense and international affairs, including trade. That was always one of the arguments the U.K had against the E.U. That the E.U always put forward a posture of weakness, when it came to international affairs, with Russia and China in particular. It was hilarious when the E.U asked PM Turnball of Australia how he "coped" with China's influence and trade tactics etc. Like the E.U is simply incapable of putting forward the strength of 500 million Europeans and what is the richest region in the world, still.

Arguably with a strengthened European defense and trade relations, the U.S stands to gain a far better ally once everybody has kissed and made up, which they will once Trump goes. The fundamental history and relations between Europe and America are a million times more important and stronger than one man.

0 ( +2 / -2 )

I actually still do a lot of business with the US - I like working with Americans and American companies (though you have to be very strict with them on payment - American companies don't seem to have a big problem with being late on payments). 

Americans are easy to do business with, and the late payments issue is pretty common in Japan as well, at least in my industry. Still both countries pay faster than many places.

You are right that it will hurt companies, but these trade problems existed way before Trump and will persist long after. The US has been steadily becoming more restrictive on business and trade - and I don't see that stopping until it really hurts them.

0 ( +1 / -1 )

All of his approach to Trump to be his "best" friend went disappointments, as a result shows here his bitter smile, he is thinking how to correct that wrong approaches and what he will do when he has to meet Trump again and what to do with that Brexit territory this successful approach with EU.

0 ( +0 / -0 )

I sell you cheese, you sell me cars... seems like a good deal especially if the EU wants to be a colony of Japan.

0 ( +1 / -1 )

But try to order a pair of leather shoes from overseas because Japan has few to no selections for larger than 28cm and they try to tariff you 50% for a product they dont even produce. I wonder if leather shoes with be a part of this EU/Japan agreement when it goes into effect after the 2020 Olympics (if we are lucky).

0 ( +3 / -3 )

Problem is that the USA produces things people need. Unlike cheap horrible tasting EU based wine that is sold at 7-11 for 1500 yen a bottle once a year.

Such as what? A Big Mac? Wine connoisseurs don't buy wine at a 7-eleven and knowledge about wine is something different then the ability to choose between a Big M and a Cheeseburger :)

0 ( +0 / -0 )

I want chocolate of all kinds at standard prices like in France ! (I don't like camembert lol). Cars and wine is a rich man's problem.

0 ( +1 / -1 )

Problem is that the USA produces things people need. Unlike cheap horrible tasting EU based wine that is sold at 7-11 for 1500 yen a bottle once a year.

It is a fine art to be so wrong in so few words... I guess you have no idea about EU and its wines, but nevertheless you felt entitled to an opinion...

0 ( +0 / -0 )

Too bad the EU couldn't treat the U.S. fairly and we have what we have now.

its the US that has been screwing the world with their trade for too long. They have taken the money from the rest of us and ended up with the largest economy in the world as a result. It’s time for us to redirect trade and money away from the US. We cannot afford to lose this war any longer. We do have trump to thank for getting us out of our complacency in letting the US screw us over. Now we are fighting back and working to bypass the US altogether.

0 ( +1 / -1 )

NetGrump wrote: Obvious dated information.

Thanks for the links. Do you happen to know what has changed in the final document [1] as compared to the quotas mentioned in the www.canon-igs.org article that Alfie Noakes linked? I'm particularly interested in cheese/dairy. It seems that many lines are still labeled TRQ, which I assume means tariff-rate quota, but I can't find the actual quota rate mentioned.

I really wish Japanese cheese didn't taste like plastic.

[1] http://trade.ec.europa.eu/doclib/docs/2018/april/tradoc_156789.pdf

0 ( +0 / -0 )

Nor Lancashire crumbly, Eccles cakes and black pudding.

Lancashire crumbly is a Very Great British cheese.

0 ( +0 / -0 )

All that glitters is not gold. I think that it is a bad deal, as it applies to products which they already trade.

0 ( +0 / -0 )

Problem is that the USA produces things people need. 

Like what? Certainly not cheese or chocolate.

People (=I) need those things, but the US doesn't produce them. Not good cheese, and not chocolate in any recognisable shape or form.

Apples (devices, not fruit) I'll allow - but all the stuff I own is 'Designed in California, Assembled in China'.

0 ( +0 / -0 )

NetGrump wrote: Clear with this agreement is that producers of 'many cheeses' like Gouda and Cheddar will gain with the tariff going to 0%.

Duty-free quota to be established for fresh cheeses (such as Mozzarella and Feta) however seems to be more align with the link brought in by Alfie Noakes.

Cheddar and Gouda happen to be my favorites, so good enough!

Some Japanese cheese is OK taste-wise, but has a weird texture due to it being engineered from oils or something (it won't brown/melt properly); similar in texture to a Starburst. Other so-called "natural-style" Japanese cheese attempts to get the flavor of, e.g., cheddar, by adding engineered aged flavor to engineered cheese; it ends up having a chemical/vinegar flavor. The third type of Japanese cheese gets the texture right but is devoid of flavor.

Anyway, many thanks for the info.

0 ( +0 / -0 )

To those who worry about what will happen after the UK leaves the EU, the answer is that the British government have made it clear they intend to roll over all the EU's trade deals, so that these will continue to apply. Of course, that will require the agreement of the other countries involved, but there is no reason whatsoever why they would object, so I think we can be pretty confident that this is what will happen.

0 ( +0 / -0 )

Trump is a GENIUS. He makes enemies out of EU nations, thus creating a pathway for his friend Abe. Win-win. Trump gets to put America first and Abe gets support from EU.

-1 ( +0 / -1 )

Uh yeah, I kinda have some experience in the area of US/Japan relations especially as they relate to military relations and trade.

So whens the trade agreement actually going into effect? 2020 just like everything else? will anything become cheaper for the consumer? if no, why not?

-1 ( +0 / -1 )

Yes, they actually do. Because they desire to keep paying the USA to protect them. They will give up trade concessions to avoid many times more of defense spending.

yes AMerica can but now Japan doesn't need to kowtow to the US and give more concessions than they already have to the EU

-1 ( +1 / -2 )

"The EU and Japan showed an undeterred determination to lead the world as flag-bearers for free trade," 

Japan and the EU are both protectionist, with many restrictive trade barriers. So where is the free trade?

-1 ( +3 / -4 )

99% for Japan, 94% for the EU. You watch.... nothing, zero, nil, from the EU will change. You will still be paying extra. Want the best cheese, pay more. Want a nice Audi, pay up. Handbags.... pay up. Do really think that Japan is just going to reduce prices. You watch..... an Audi R8 will still cost 30% more to buy in Japan that it does in the USA.

Based on what knowledge? Do some reading and learn that the 30% tariff on cheese is lowered to 0%. A R8 is not for small boys anyway :)

-1 ( +0 / -1 )

And more nations sign trade agreements that entirely bypass the US altogether.

Not just trade, but finance and eventually most everything else. And it doesn't seem to matter who is president. The US has been the big kid on the block, but has become the big bully. I already know several people in business who avoid any transactions that involve the US, however marginal that involvement.

Despite the large market, people eventually get tired of being pushed around and squeezed by a foreign nation. The US will find itself sidelined in a number of fields, because their "might is right" attitude is ingrained.

-2 ( +2 / -4 )

Oh sorry I missed this line hidden in the article. So basically nothing at all has changed. The liberal media in USA is using this as some kind of "rebuke" to Trump's trade policy anyway though.

The measures won't kick in right away and still require legislative approval.

-3 ( +3 / -6 )

Which will never happen due to Japan also being reliant on the USA for military protection. Guaranteed that the USA will get a better bilateral deal with Japan than the EU did.

Of course you can. Just as Japan can create agreements with other countries, so that they can reduce their dependence upon trade with America to a safe level.

-4 ( +4 / -8 )

You do know that Trump asked the same exact thing (of no tariffs) at all to the G7 members, right? They wouldnt agree to it.

-4 ( +2 / -6 )

“So Trump will be saying to Japan if you can do this with Europe, why can't you do it with the U.S?”

 

Good question. The simple answer is the TPP. Japan wants the US to come back to the TPP which Trump himself said might happen. If Japan would enter into a Japan-US free trade talks then the US would have no incentive to come back to the TPP.

 

Japan is playing a really smart game. First, it saved the TPP. Second, it signed a free trade deal with the EU. Finally it is taking part in RCEP talks which includes China and India. Put all these deals together with investments in North America, Japan is the catbird seat. In comparison let’s look at America’s position.  

 

America is fighting a three front trade war. One front is the Chinese front, the second front is the EU front and finally the NAFTA front. Politically speaking Trump can’t really back down on any of the fronts. Nor can he open another front with Japan. Japan was really smart to invite the US to Framework talks. This allowed Trump to save face and avoid a trade fight with Japan. Politically speaking, the easiest move for Trump is to go back to the TPP. He won’t get any pushback from his base. Japan knows this.

 

So why won’t Japan enter into a bilateral trade talks with the US? Simple,Japan does have to because, the chessboard favors Japan

-4 ( +0 / -4 )

A major accomplishment by the Abe government. Well done!

-5 ( +1 / -6 )

The EU and Japan are the last bastions of globalism. They haven’t realized that the tide has changed.

-5 ( +0 / -5 )

Problem is that the USA produces things people need. Unlike cheap horrible tasting EU based wine that is sold at 7-11 for 1500 yen a bottle once a year.

-6 ( +2 / -8 )

Too bad the EU couldn't treat the U.S. fairly and we have what we have now.

To cleo - don't worry, after your countrymen finally take back their country from the EU, they'll forge a great trade deal with the U.S.

-6 ( +0 / -6 )

3 big absentees however. China, England, and the USA.

Not to mention that the EU really has a few years that will he make or break. Italy not wanting to be in the EU could be the break...

-11 ( +3 / -14 )

PM Abe looks so happy in this photo! I can hardly wait for November now, I will drink my favorite French beujalais neuveau wine, much cheaper now than usual prices.

-13 ( +0 / -13 )

Stunning Free Trade deal! This will be an enirmous boost to Japans economy, with thousands of tons of more Japanese export to EU. I am looking forward to now buying more French wine and cheese, at very affordable prices, and EU Citizens will love to buy famous Japanese steak, fresh seafood etc. Win-Win.

Thank-you PM Abe! Well Done!

-16 ( +4 / -20 )

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