The EU-Japan Trade Deal is the Wake-Up Call Donald Trump Needs
Op-Ed by Wendy Cutler in Fortune
ASPI's Wendy Cutler writes in Fortune that Europe and Asia are moving ahead on trade while the United States is missing at the negotiating table. Read an excerpt from the original article below.
Japanese Prime Minister Shinzo Abe made an unscheduled stop in Brussels Thursday on his way to the G20 Summit in Hamburg, Germany. There, he and European Council President Donald Tusk proudly announced the conclusion of a new EU-Japan trade deal. Their message is simple: As the United States denounces free trade and walks away from the negotiating table, the rest of the world is not standing still.
The EU-Japan trade agreement will provide significant benefits for Japanese and European companies and consumers. Together, Japan and the EU account for about a third of the global economy. The EU is Japan’s third-largest trading partner, and Japan is the EU’s sixth-largest trading partner. If ratified, the accord would be the EU’s largest free trade agreement. And after the Trans-Pacific Partnership (TPP), which Japan is now urging others to bring into effect without the United States, this will be Japan’s largest free trade accord.
The deal is also a major political victory for both sides. For Abe, it shows the world that a once-protective Japan is emerging as a leader in global trade. German Chancellor and G20 host Angela Merkel, in turn, can demonstrate that the EU, after Brexit, is open for business and can lead the quest for open markets among G20 members.