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A new trade agreement sends a powerful political message
FREE-TRADE agreements have seemed out of fashion as President Donald Trump has set about scotching some of America's. But on July 5th Cecilia Malmstrom, the EU trade commissioner, and Fumio Kishida, the Japanese foreign minister, announced they had achieved consensus on a Japan-EU Economic Partnership Agreement (JEEPA). In front of the cameras, they swapped Japanese Daruma dolls, talismans of perseverance and good luck, and, they hope, of a win-win agreement.
The timing of JEEPA was just as carefully co-ordinated. When negotiations started in 2013, it was neither side's main priority. But now both want to show that they can fill the vacuum left by America's withdrawal under Mr Trump from its role as the world's trade leader. To highlight its political importance, they note that this is the first trade agreement to mention the Paris climate accord, another deal Mr Trump has spurned. Haste is handy: the EU wanted success before Brexit negotiations and national elections swamp its agenda.
The deal is about more than political symbolism, however. Average tariffs between the two sides are already low, but prizes are still there to be grasped. Exporters from the EU pay EUR 1bn ($1.1bn) in export duties to Japan each year, and on agricultural products face average tariffs of 21%. JEEPA will slash Japanese tariffs on beef,...