Merkel ally, in Tokyo, pushes for swift EU trade deal with Japan

No matter how much pressure or persuasion Volker Kauder, head of Merkel’s conservative parliamentary group applies to the Government of Japan or Japanese Prime Minister Shinzo Abe, trade deals between the EU and Japan would fundamentally fall in Germany's favour, providing an overwhelming advantage. There is evident enough in Germany's balance of payments surpluses against all 27 other members states.

This is especially compounded in the areas of money policy. In essence The European Central Bank is the identical twin of the German Bundersbank that is heavy influential in maintaining Germany fiscal/monetary advantage, contrary to all the efforts/ability for the EU commission to present itself as an independent economic or political entity.

Unit labour costs alone show without a doubt the competitive advantages for German economic growth. Indeed in every sector the benefits are considerable and manifest from a policy that influences the value of the single currency.

The reluctance to find a political solution to Euro-zone wide debt consolidation, tax policy, budgeting financial resources etc will allow Germany to ruthlessly and cynically undercut Japan industrial and manufacturing base. A totally unequal and lopsided partnership.

Japan agriculture, its dairy farmers, producers and growers would be at the mercy EU common agricultural policy. I know that this LDP Government needs to do more, and fulfil promises and pledges to reform inefficient working practice and restructure farming cooperatives, however this is not the complete picture, there is no magic wand solution. Nature did not grant Japans land mass any geological favours.

The Government of Japan must not be hurried or bounced into making rushed decisions dressed up as free trade deals.

itsonlyrocknroll

I think you can be assured of no rushed decisions

Yes! Cheap(er) cheese!!

Hi sf2k, Fair enough, the status quo doesn't help lower food prices or provide choice. The cost and shortages of butter is another irritation. The J farmers/growers are very proud of there produce. It is convincing them to adopt methods of combining land collectively to increase efficiency. One thing they do collectively and efficiently is vote.

The age of these farmers and put respectfully, are set in there ways, not taking kindly to criticism that can be interpreted as rudeness.

I think the German minister and the Japanese government have different interpretations over the meaning of the phrase "fast deal"! Any deal struck will get bogged down in Diet committees and reviews before its ever passed.

Chance of a deal being announced: 95% Chance of a deal being implemented: 5%

itsonlyrocknroll

with respect to butter, all Japan has to do is open the market up when they can't meet demand. That way it's not punishing consumers while also encouraging farmers to meet future demand.

I am an love baking, sf2k, I have invested in a couple of western style ovens, I think I have spent more on butter/flour etc than I have installing the ovens. I have been buying Australian butter in times of rationing.

I have had some contact with JA locally from meetings within the community. It is a rock and a hard place, stubborn resistance meets unsustainable pricing structure that results in consumers having to foot the bill.

How one reforms, whilst at the same time negotiates opening up markets through trade agreements, is probably contributory to the failure for the EU and Japan to reach a compromise.

Ironically the UK a strong advocate for full free trade deal with Japan also the US failed comprehensively to convince EU member states to drop a number of regulations. Although to be fair rabid globalization lobbyists did help.