Japan and the European Union have signed a massive deal that will get rid of nearly all tariffs on goods traded between the two sides.
And this deal could deal a blow to South Korean exporters.
Our Kim Hyo-sun reports.
Japan and the EU signed a landmark deal on Tuesday that will give birth to the world's largest open economic area.
The ambitious trade pact will cover nearly 40 percent of global trade, 30 percent of the world's GDP and over six-hundred million people.
Upon signing the agreement,... which comes amid the protectionism unleased by U.S. President Donald Trump,... Japanese Prime Minister Shinzo Abe stressed that the deal shows the two parties' strong commitment to free trade.
"There are currently rising concerns about protectionism globally. Within this context, I believe it is extremely meaningful that Japan and the EU are sending a message to the world about the importance of free and fair trade."
The deal will eliminate about 99 percent of the tariffs imposed on Japanese goods exported to the EU, and 94 percent of tariffs on European imports into Japan.
The president of the European Commission hailed the agreement,... adding that it will make both parties strong.
"But the impact of today's agreement goes far beyond our shores. Together we are making, by signing the agreement, a statement about the future of free and fair trade. We are showing that we are stronger and better off when we work together."
The agreement is expected to take effect next March,... following its ratification by the Japanese government as well as all of the EU's 28 member states.
Once in effect,... the deal will eliminate nearly all of the tariffs levied on Japanese goods within the European market,... which means South Korean goods will no longer have the same price competitiveness within the market.
Kim Hyo-sun, Arirang News.
