Comment: trading as a question of Confidence

0
308

Japan and the EU belong to the long list of those, the US President, Donald Trump has snubbed in trade issues. Both include a free-trade agreement, therefore, has symbolic value, says Andreas Becker.

As the European Union and Japan in 2013, the talks on the free trade agreement JEFTA recordings was Donald Trump still busy with other things.

In the same year, he was inducted into the “Hall of Fame” of the show fight organization, “World Wrestling Entertainment”, he also campaigned on Twitter for the beauty contest “Miss USA”, whose promoter he was. To tweeted trade issues, he at that time not a word.

The now signed agreement, therefore, actually has nothing to do with Trump. And yet the US President is the reason why the EU and Japan have accelerated the negotiations.

Both are Trump disappointed. The EU, because the TTIP agreement is for Trump to be clinically dead, with no Chance of a revival. Japan, because Trump announced directly after his arrival, the exit of the US from the TPP agreement from the Pacific rim countries.

It can be done differently

Therefore, the Japan-EU agreement is charged with symbolism. In a time, in the Trump trading partner with punitive tariffs plating allies than enemies and the US is increasingly isolated, JEFTA on approach, cooperation and the removal of trade barriers. The message to Trump: It’s also different.

Andreas Becker, DW-business editorial

Together, the EU and Japan account for almost ten percent of the world’s population, 30 percent of the world’s economic output and 40 percent of global trade.

Within this “largest economic zone in the world” (Japan’s Premier, Shinzo Abe) will there be hardly any duties, and largely uniform Standards and norms. In addition, new markets such as services, telecommunications and transport, will open for the other side. Both sides hope to gain more trade and more Jobs.

All of this will not happen overnight. The agreement is expected to become effective in the fall of 2019 in force after transition periods of up to ten years. The economic Benefits can be estimated at the Moment. Depending on the study, the exports to the EU could increase to Japan between 15 and 30 percent, and economic output is between 0.1 and 0.8 percent.

Of course, there is also criticism. Consumer and environmental organizations fear that standards of protection written firmly, but not more. However, in comparison to the discussion in the TTIP, those voices are silent.

Could the TTIP change something?

This is due to the fact that the protection of investment – and thus also the question of Jurisdiction for disputes between companies and governments is excluded from JEFTA and is separately negotiated. An agreement is delayed here JEFTA can still occur.

And who knows? Maybe there would be today a free trade agreement between the EU and the US, if you would be in the TTIP negotiations, similar to the pragmatic method.

A guarantee of harmonious trade relationships but would also have been the. To existing contracts Donald Trump feels not bound by the world trade organization WTO they do not take seriously. The North American free trade agreement, which is for almost a quarter of a century in power, he wants to renegotiate, and of punitive tariffs against Mexico and Canada, he dropped out due to NAFTA do not hold.

The symbolism of the agreement between Japan and the EU, therefore, has yet another level: JEFTA is for the trust to focus on its contract partner.

You can leave below this article, leave a comment. We look forward to your expression!