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EU to Start Free Trade Talks with Japan
The European Union's trade ministers have authorized the European Commission to begin negotiations with Japan on a tree trade agreement.
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The European Union's trade ministers have authorized the European Commission to begin negotiations with Japan on a tree trade agreement.
The ministers included several safeguards in response to vehement opposition from France, Italy and Europe's automakers.
The EU can break off talks if Japan hasn't removed its non-tariff barriers on European imports. The accord must include a clause that would allow the EU to reinstate auto tariffs if it is flooded with Japanese cars or other "sensitive" goods.
The Japan Automobile Manufacturers Assn. "warmly" welcomes the decision. A pact could eliminate the EU tariffs of 10% on cars and 22% on trucks.
European automaker group ACEA declares that a free-trade deal with Japan would cost the region's auto industry 70,000 jobs.
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