Japan, European Union Announce Free Trade Talks to Start April

Nations across the world are seeking for methods to expand their economy. Japan, one of several countries, wishes to increase sales through fiscal policies. Leaders have been communicating with the European Union (EU) in hopes of creating a free-trade agreement. In this agreement, tariffs placed on Japanese vehicle imports will be removed. Automobile manufacturers in Japan, such as Nissan Motor Co., have pushed for this agreement for a long time because they did not want to fall behind South Korea. In the past, E.U. had placed a 10% tariff on Japanese cars, while there were no tariffs on EU automobiles. This agreement will also aim at reducing or eliminating such trade barriers and adopt the same automobile regulations. There are also discussions between U.S. and Japan regarding regional trade agreements, which is under the title, Trans-Pacific Partnership.

Free-trade agreements will be able to expand both economies and will be better for people in general. Trade barriers often prevent or limit sales of goods from other nations; ultimately, they limit a nation’s production frontier. It is hopeful that Japan will continue to be the third largest economy in the world when these agreements are in effect.

Written By: Melody Mark

Source:

Sharp, Andy, and Isabel Reynolds. “Japan, European Union Announce Free Trade Talks to Start April.” Bloomberg. Bloomberg L.P., 25 Mar. 2013. Web. 25 Mar. 2013.

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