Japan and the European Union have agreed to push through with free trade plans, which will be on its third round of negotiations. European Trade Commissioner Karel De Gucht also said on Tuesday that once finalized, it would be one of the biggest free trade agreements in the world. The EU commissioner is aiming to move fast with the negotiations after meeting Economy Minister Toshimitsu Motagi.
De Gucht believes that the Japanese and E.U. economies should “reap the valuable benefits expected from the agreement sooner rather later.” According to some analysts, the deal could be implemented for five years and could result to 30 percent output in global economy and 40 percent of trade. They also believe that the multilateral free trade agreement can revive both economies from their current condition. De Gucht, however, reminded that commitments not met could lead to suspension of talks after a year.
The European trade commissioner has been eager to conclude the deal with Japan, seeing the potential of the bilateral agreement. “The EU-Japan trade agreement remains a key priority and we hope to be able to move fast with the third round of negotiations in October in Brussels and at the upcoming summit in November,” De Gucht said. To have solid proposal on the next EU-Japan summit, De Gucht and Motagi agreed to exchange offers concerning goods and services.
Despite technical issues and domestic objections from both sides, the Belgian commissioner encouraged having “political resolve” and restricted timeline to move past the issues. “We are working at a sustained pace and I hope the summit can put some impetus into the process,” said De Gucht. The next EU-Japan summit will be hosted by Japan in November.