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The Great Japan/EU Cars for Cheese Deal!

The European Union is now celebrating the Japan-EU Free Trade Agreement, or JEFTA to give it its short name. But there may be a bit of a problem for the EU.

This Japan-EU trade deal has been in formation under much secrecy since 2013.

But now the EU is promoting the deal as great for its farmers and wine producers.

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Under the deal, most tariffs on imports of Japanese cars into the EU and exports of EU dairy products and the like into Japan will be tariff free. In fact it’s been called the ‘cars for cheese’ deal.

However, when you take a closer look, it might be that the Japanese have got the better end of the deal.

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It seems that cheese, for example, makes up 0.4 percent of EU exports to Japan, but 13 percent of Japanese exports to Europe is already made up of cars.

When you add in the estimate that some 90 percent of those in the Asia region are lactose intolerant, you get the feeling that the Japanese dairy market might be a bit limited.

Then there’s the existence of an already long established dairy, meat and wine trade between Australia, New Zealand and Japan, which might prove hard for the Europeans to break into.

This deal will enable the Japanese to compete directly with EU car manufacturers in a very large market place and one wonders whether the likes of BMW are going to be particularly happy about this arrangement - even though tariffs will be phased out over time.

And I also wonder how pleased the farmers will really be about this.

There’s also the thought that you’d have to sell an awful lot of cheese to make up for one car.

So one has to wonder how good this deal will really be for the EU, Sorry I need to re-phrase that, it will look good for the political institution called the EU, but whether it benefits the people that live in it over the long run is another question - apart, of course, from being able to buy Japanese cars more cheaply that is.

But, at the end of the day, if EU car-makers and their workers find themselves under EU imposed financial pressure and the bloc’s farmers find that the Japanese dairy market was more myth than reality, they can all be thankful that a bunch of their betters had put the deal together on their behalf - a bunch of betters that they can neither sack, nor sanction nor vote out of office - marvellous!

And lastly a couple of questions for the Remainers - however good or bad it turns out to be, Japan has done a deal with the EU, so firstly, has Japan signed up to the freedom of movement of people with the EU? Secondly, has Japan agreed that the they will abide by ECJ rulings? Thirdly, is Japan paying a huge annual fee for the privilege?

And if Japan hasn’t done these things to get a deal, why on earth should we?

What do you think about this deal?

Please leave a comment below.

Thank you.

Source:

http://www.express.co.uk/news/politic...

https://www.theguardian.com/business/...