Japan and the EU will discuss the possibility of a free-trade pact between the two regions.
Chief government spokesman Yoshihide Suga said today, March 25th, that Japan Prime Minister Shinzo Abe will discuss by phone with Herman Van Rompuy, president of the European Council about the negotiations, as Van Rompuy’s visit to Tokyo this weekend has been canceled. Earlier this month Japan’s Prime Minister announced that Tokyo will join the U.S.-led Trans-Pacific Partnershio in talks about the Pacific trade pact.
One of the beneficiaries of removing tariffs would be Toyota, which is the world’s biggest automaker. Consumers in Japan will also have access to new kinds of services and cheaper imports, an the increase in spending will certainly get Japan’s economy back on the track.
“It would be not only great for the manufacturers seeking exports. It should also lead to a more efficient domestic economy because of increased competition. And it’s the Japanese consumer who will benefit,” said Azusa Kato, economist at BNP Paribas.
The talks on the free-trade deal are part of Japanese prime minister’s “Abenomics” strategy, which is aimed at generous public works spending and super-easy money. This strategy has already brought down the yen and improved the Tokyo stock market.