By the Gazette Editorial Board The historic free trade deal that was recently signed by the European Union and Japan will not be the last in the attempt of the rest of the world to counter the protectionist measures being taken by US President Donald Trump. Under the motto of "America First" and on the pretext of protecting the national economy, Trump started his term by withdrawing from the Trans-Pacific trade agreement and announced that he was reconsidering the North America Free Trade Agreement (NAFTA) the US signed with Canada and Mexico early in the 90's to form a trilateral trade bloc of the North American countries. Since then, his "America First" policy has developed to the point of imposing tariffs on a range of items, including the steel, and aluminum being imported from China, Japan, the EU and other countries. When the former US allies failed to convince Trump to give up these measures because of the grave damage they were causing to the free trade system, they resorted to counter-protectionist measures against the US exports, in a move that was seen by analysts and financial institutions as a rehearsal for a global trade war. However, the move recently taken by the EU to foster trade ties with Japan as well as China could force new developments in the world trade scene and increase the US' isolation from the rest of the world. The significance of the deal that was concluded this week by the EU and Japan is that it covers around one third of the world's GDP. The deal will eliminate about 99 per cent of the tariffs on Japanese goods to the EU, and around 94 per cent of those on European exports to Japan, going up to 99 per cent over the years. The deal will open the EU market wide to Japanese auto and spare parts products and will allow European food products especially, dairy and chocolate, into Japan at much cheaper prices. In an attempt to challenge Trump's trade policies that flagrantly violate the world's free trade principles, the European and Asian leaders seem more willing today to foster relations and join hands to counter the draconic political and economic decisions being taken by the Trump Administration against the rest of the world. When Japan, the strong traditional ally of the US, was not excluded from Trump's protectionist measures, it decided to strengthen trade ties with different countries. Besides the latest deal with the EU, Japan is working on other trade agreements, including a far-reaching trans-Pacific deal. The partnership includes Australia, Mexico, Vietnam and other nations. The EU has launched trade talks with China and issued a communiqué on Monday confirming the commitment of both sides to the multilateral trading system. The EU has also signed accords with Singapore and Vietnam and is negotiating some other deals with Indonesia, Australia and New Zealand, to promote the same goal of strengthening the free trade movement. The Japan-EU trade deal that is to serve around 600 million people, could be seen as a sign of shifting global ties as Trump continues to distance his country from its traditional allies.
