Japan and the European Union have taken an important step toward deepening their relationship by starting formal negotiations on a free trade agreement in April, seeking to boost their faltering economies by creating one of the world's largest free-trade accords that will account for about 30 percent of global gross domestic product.
"With the change of the strategic environment, the Japan-EU partnership needs to be strengthened further," Prime Minister Shinzo Abe said during a teleconference with European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso on March 25, launching the start of negotiations.
An FTA is important for both sides as it is expected to reinvigorate their slow-growing economies. The direct economic impact is considered to be big, especially for Japan, as tariffs are currently imposed on 70 percent of Japan's exports to the EU compared to only 30 percent of EU exports to Japan.