WASHINGTON ¨C It¡¯s not the clash of civilizations, but it¡¯s no doubt the clash of opposing philosophies when it comes to trade. As Japan and the European Union signed a free trade agreement last week, the United States held a hearing on the possibility of imposing tariffs on European and Japanese car imports.
At stake, though, is more than just what taxes may or may not be levied. A successful conclusion to the trade pact between Brussels and Tokyo could also herald possibilities for deepening relations more broadly between the two sides that could decrease Washington¡¯s influence on the global stage.
The Japan-EU Free Trade Agreement is certainly an ambitious one. Together, the two sides will account for nearly one-third of global GDP and the deal will eventually lift all tariffs across the board, which will allow European agricultural goods to penetrate the world¡¯s third-largest economy, and Japanese autos to be free of 10 percent tariffs.
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