European Union, Japan announce free trade agreement

July 6 (UPI) -- Japanese and European Union leaders announced a sweeping free trade agreement on Thursday, the EU's largest trade deal thus far.

The plan, in negotiation for four years, will eliminate almost all tariffs between Japan and the 28-membetr economic bloc. The breakthrough came after the EU agreed to phase out its 10 percent duty on cars imported from Japan and Japan expanded access to European food products, notably imports of cheese, a protected local commodity in Japan.

The deal comes as leaders of G20 counties prepare to meet in Hamburg, Germany, on Friday. It can be seen as a counter to the recent protectionist policies of the United States. At President Donald Trump's order, the United States pulled out of the pending 12-member Trans-Pacific Partnership of free trade.

Japan seeks to expand its export opportunities, The Wall Street Journal said Thursday.

"Some are saying the time of isolationism and disintegration is coming again, we are demonstrating that this is not the case, that the world really doesn't have to go 100 years back in time," European Council President Donald Tusk said in Brussels on Thursday.

The agreement will eliminate $1.14 billion in Japanese customs duties, and is designed in part to accelerate European exports of food, chemicals and medical devices to Japan.

It also elevates the stature of Japanese Prime Minister Shinzo Abe, whose administration has been weakened by political scandal. The deal also demonstrates the European Union's determination to remain united, despite Britain's planned exit, Bloomberg News said.

"Japan and the EU will hoist the flag of free trade high amidst protectionist trends," Abe said. "This is an achievement we should be proud of, which also sends a strong message to the world."