EU, Japan officials seal trade agreement

So it sounds like we lost out on the cheese! Damn! Instead of tarriffs they will use a quota system that will only allow a small amount to enter at a reasonable price. Oh well, back to my lovely while glop that Japan loves to eat.

where Japan's protected dairy industry feared exposure to EU imports.

Pray tell what area in agriculture here is NOT protected? The Japanese public has to stop drinking the kool-aid and wake up to the fact that they are over paying for so many products in the force-fed belief that their Japanese produced "whatever" is superior to anything gaikokuland could provide.

Cheese is just ONE example where they are wrong.

The timing is perfect for the EU to get maximum concessions. Abe desperately needs this now that his popularity is starting to wane and Abenomics has been a failure. It will be good news for everyone in both markets apart from a few vested interests.

Just one of many trade agreements that will bypass Trump's USA over the coming years. In electing Trump, the US voted themselves into irrelevance.

So it sounds like we lost out on the cheese! Damn!

It looks like that, but I haven't lost hope yet. The quota might turn out to be quite high and somewhat meaningless as a protectionist measure. The levels may not have even been agreed yet. Abe clearly needs a smokescreen to avoid domestic criticism and the EU might have agreed to play along. I guess we will have to wait and see what the fine print says.

I don't understand. It says "seal trade agreement", and then goes on to say that several months of negotiation are necessary. That doesn't sound very "sealed". But I agree, after the huge loss in the Tokyo election, Abe has to look like he is achieving stuff. But he can't alienate his agrarian base. That is being stuck between a rock and a hard place.

Sounds like small fries and crappy deals to me.

Wheres the real changes at?

Wheres the real changes at?

This is not about changes.

This is about keeping things the same (from the Japanese side)

Brexit is the backgroud to these negotiations, not the TTP.

Most Japanese cars for the European market are made in the UK.

With Brexit those car makers are losing their access to that market.

A bit of cheese traded off for thousands of cars. Not a bad deal really.

Europe keep hammering on the cheese thing, DONT give in to Japan once again!

Draft agreement (working paper), a statement in conjunction with 24th Japan EU summit.

http://g8fip1kplyr33r3krz5b97d1.wpengine.netdna-cdn.com/wp-content/uploads/2017/07/EU-Japan-summit-draft-declaration-July-3.pdf

I understand that Pedro Silvia Pereira MEP that leads the Group of the Progressive Alliance of Socialists and Democrats in the European Parliament Committee on International Trade, has stated that a huge gap remains on investor protection.  In the notes I have received and have been released to news agencies, Pedro Silvia Pereira:

  “A political agreement means we have a deal on market access, which is important, but we still don’t have a final text. There are some technical and legal issues that remain to be resolved. And we haven’t come closer on agreeing on an investment protection mechanism,”.....

So this is not to be seen as a trade deal but as a broad political declaration.

So the EU commission has clearly fudged/stated a political declaration, agreement, or an agreement in principle, or outline political declaration, that could present in the future a dedication to illustrate or highlight the symbolic power to promise or pledge the probable economic benefit that in itself could provide future benefit to world trade policy.

Ok, in the meantime I will consul myself that it will take 15 years to understand the meaning before I can buy a decent sized block of Parmigiano-Reggiano in my local Aeon with having to remortgage my home.    

Why do I feel this resembles a worthless piece of paper stating globalization in our time?

They haven't sealed anything.  they have agreed it would be a good idea to try and achieve a deal.  that means some way to go, especially given the EU exports lots of stuff Japan protects (cars, food, machine tools etc).  Wine and whisky will be welcome though.

So this is not to be seen as a trade deal but as a broad political declaration.

That's very true. However, it also seems to be the new way trade deals are negotiated these days. I guess announcing something in front of the cameras makes it much more difficult for either side to walk away. We saw something similar with the EU-Canada deal where it was all smiles in Brussels but then the deal was reopened and on life-support 24 hours later. The question now is which side is more desperate for a deal. Probably both, but Abe seems to be fighting for his political life and he also wants some sort of legacy.

Hi M3, Frankly the declaration, agreement, undertaking, political or otherwise is gibberish without a legal framework to exist within, that is where Pedro Silvia Pereira MEP and the role of his Committee on International Trade, is crucial.

Without a comprehensive investment protection mechanism. Cecilia Malmstrom , Japanese Foreign Minister Fumio Kishida. Angela Merkel, Shinzo Abe, and President of the European Commission Jean-Claude Juncker might as well break out into a song and dance routine, it would make allot more sense and at least distract the President Trump US delegation...

Goes something like this ...Supercalifragilisticexpialidocious (from "Mary Poppins") -......

https://www.youtube.com/watch?v=tRFHXMQP-QU

Japan under our dear leader should build cars made of cheese. Our best export gone.

actually merkel and the rest of the left wing, it is your ridiculous socialist policies which pick winners and losers. Free trade doesn't actually require elaborate trade deals. what elaborate trade deals, are for is do politicians can ensure they control trade, suck money off of it and ensure their own citizens are restricted from pool participating directly in the globalized economy. trump is for regular people being in the economy, merkel is for globalization which is a political class concept designed to screw the people of the world for the financial benefit of the political class.

I don't understand. It says "seal trade agreement", and then goes on to say that several months of negotiation are necessary. 

I understand it, it had to be announced prior to G-20 even though its not even close to being done. a political deal intended as a signal to U.S. President Donald Trump and Angela Merkel, the German chancellor, took aim at Trump on Wednesday, Thats all I need to know about the intent of this.

To complete a successful trade deal between the EU and the Government of Japan the minimum criteria must be at least equal to or more beneficial than the existing FTA agreement strut between the EU and South Korea.

I think for sound political, economic and cultural reasons.  

For the EU commission, parliament  and even the UK Government the independence referendum result and the subsequent UK intention to withdrawal from the European Union has presented a economic and political tragedy that's severity is yet to be fully realised.

The most prudent crucial course of action for the EU and UK is to reach a trade agreement and reform the EU budget so to take into account the loss of a major financial contributor.

It is going to be difficult task to reach a conclusive financial settlement that will reflect close to the expectations of the EU commissions mandate/directive for their team of negotiators.   

US commerce secretary Wilbur Ross has already declared his expectations/demands that the EU/German government make and present clear proposals to rectify/balance trade so to maintain a consensus for future friendly economic and political ties.

I can't help but feel this whole EU Japan political declaration is disparate attempt to  change President Trumps attitude. I hope I am proved wrong, but I am inclined to believe it will only make the situation much worse.

@ garym

"A bit of cheese traded off for thousands of cars. Not a bad deal really."

Great point, thanks.

Although this is great news in principle, how is this such a good deal for Japan? They get phased out car tariffs over 10 years, but don't Japanese automakers manufacture most cars in the EU anyway? Did they reach any agreement on data retention rules which are so troublesome in the EU? We need some details here..

Senior EU officials acknowledged that it would take months to complete the full EU-Japan Economic Partnership Agreement, with not just legal technicalities but also some substantive negotiations still outstanding. However, one insisted, "We agreed on almost everything that is important for either side."

So no major change from where we were last month then? 

This smacks of a simple publicty exercise to show the world that this is still going on with out any real progress being made at all?

Frankly the declaration, agreement, undertaking, political or otherwise is gibberish without a legal framework to exist within

Very true, but I guess I'm optimitic that something will come of this. The credibility of both sides basically depends on it.

What would be beneficial is a moratorium on UK withdrawal of five years.

This period would allow a full review of EMU and the withdrawal from the single currency of, Spain, Greece, France, Portugal, Ireland, and Italy. It would also allow structural reform of the EU commission and Parliament and the dismantling or review of the common agricultural policy and budget.

Globalization and the toxic vested interests of lobby groups have brought the whole question of federal political union to the fore. German industrial economic and political strength, it's huge current account deficit cannot exist within the current framework.