Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

The deal is one of the biggest ever. RPBaiao/Shutterstock

Cars for beef: Japan and the EU have signed a 'huge' trade deal but not everyone's happy

Both parties think it will give a boost to their economies.

IRELAND’S AGRICULTURE MINISTER has said that a trade deal between the EU and Japan offers a “huge opportunity” for Irish beef farmers.

Michael Creed says that 43,500 tonnes of Irish beef going to Japan will see tariffs dropping from 38.5% to 27.5% in the first year and then to 9% over a fifteen years.

The deal will see Tokyo scrapping barriers to EU farming products and in return the EU will further open its market to the world-leading Japanese auto industry.

The breakthrough capped four years of talks and came on the eve of a G20 meeting in Germany tomorrow.

Despite top EU politicians welcoming the deal, there is opposition to so-called investment courts which opponents argue are undemocratic and will be a boon for multinationals.

The courts are designed to resolve trade disputes.

The EU and Japanese economies combined account for more than a quarter of global output, making the deal one of the biggest trade pacts ever attempted.

With the deal, the EU is seeking access to one of the world’s richest markets while Japan hopes to jump-start an economy that has struggled to find solid growth for more than decade.

“The concessions achieved in relation to beef are particularly significant, and represent a huge opportunity which I am determined will be utilised to the maximum possible extent by the Irish beef sector,” Creed said this morning.

But the outcome is also extremely positive in relation to pigmeat, where Japan will significantly lower the tariffs applied through its import scheme over the period of the agreement, and for cheese and dairy products.

The deal is also being seen as a rebuke to US President Donald Trump who has been a proponent of trade protectionism and an opponent of globalisation.

While agreements have been signed, some work remains to be done before it is competed.

It is being described as a “political agreement” and some of the accord’s toughest aspects have been left aside and could still prove difficult.

Sinn Féin MEP Matt Carthy argues that full details of the proposed EU investment courts must be debated in the Dáil.

“The commission seems intent on establishing this multilateral court without any democratic mandate,” he said.

There has yet to be a Dáil debate on this provision despite the dangerous and serious implications such a court will have for Irish democratic and judicial structures.

Greenpeace is also opposed to the deal, describing it as “corporate protectionism”.

Last year, the EU’s giant CETA trade deal with Canada nearly sank on such concerns when the small Belgian region of Wallonia threatened to veto it, before eventually relenting.

With reporting by © – AFP 2017

Read: Airline apologises after wheelchair user forced to crawl up steps to board plane >

Read: Japanese monk gives ‘funerals’ for old dolls’ souls >

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
51 Comments
    Install the app to use these features.
    Mute John003
    Favourite John003
    Report
    Jul 6th 2017, 2:04 PM

    Bet the government will increase VRT on Japanese cars to take account of EU tariff reduction….Great to be in the EU single market…..

    242
    Install the app to use these features.
    Mute Paul
    Favourite Paul
    Report
    Jul 6th 2017, 2:24 PM

    @John003: u cannot selectively increase VAT on cars from Japan and not the other countries…..

    88
    Install the app to use these features.
    Mute Fred Jensen
    Favourite Fred Jensen
    Report
    Jul 6th 2017, 2:26 PM

    @John003:

    What has an Irish tax on cars got to do with the merits of the EU single market?

    69
    See 6 more replies ▾
    Install the app to use these features.
    Mute David Kavanagh
    Favourite David Kavanagh
    Report
    Jul 6th 2017, 2:35 PM

    @Fred Jensen: The very lack of a free movement of capital in the single market.

    46
    Install the app to use these features.
    Mute John003
    Favourite John003
    Report
    Jul 6th 2017, 2:39 PM

    VRT is different to VAT….It is percentage of retail selling price of car….Charged at importation….It is not charged in other EU countries….Against the single market as it is charged on all imported cars….Even ones made in the EU….

    50
    Install the app to use these features.
    Mute Gerry Ryan deG
    Favourite Gerry Ryan deG
    Report
    Jul 6th 2017, 2:55 PM

    @John003: we are not supposed to be happy Citizens, we are meant to struggle, keeps us occupied trying to survive & if we could afford nicer cars we’d get rebellious & demand things for our Tax payments

    34
    Install the app to use these features.
    Mute Michael Sheahan
    Favourite Michael Sheahan
    Report
    Jul 6th 2017, 3:47 PM

    @John003: vast majority of Toyota cars that are sold in Ireland and Europe are manufactured in Europe. No tariffs on those cars as a result as it stands. Same applies to
    Hyundai and others.

    13
    Install the app to use these features.
    Mute Fred Jensen
    Favourite Fred Jensen
    Report
    Jul 6th 2017, 5:39 PM

    @David Kavanagh:

    There is free movement of capital, it’s just the Irish govenrment decides to put taxes here and everywhere. Elect a tax cutting Irish party if you want to change things.

    11
    Install the app to use these features.
    Mute Alois Irlmaier
    Favourite Alois Irlmaier
    Report
    Jul 7th 2017, 2:18 AM
    1
    Install the app to use these features.
    Mute Míleata Watch Co
    Favourite Míleata Watch Co
    Report
    Jul 6th 2017, 2:08 PM

    I’m glad it’s good news for our farmers, and I hope they do well from it. But I wouldn’t hold my breath for cheaper cars as our greedy government will still charge the VRT

    165
    Install the app to use these features.
    Mute Paul
    Favourite Paul
    Report
    Jul 6th 2017, 2:25 PM

    @Míleata Watch Co: u think manufactures will happy pass it fully on.

    10
    Install the app to use these features.
    Mute John R
    Favourite John R
    Report
    Jul 6th 2017, 3:46 PM

    @Míleata Watch Co: If our “greedy” Govt didn’t charge VRT they would have to raise the revenue elsewhere. Public services need to be provided. There is no such thing as a free lunch. So you either pay it on cars or pay it on direct taxation or something equivalent.

    34
    See 1 more reply ▾
    Install the app to use these features.
    Mute Mistawez
    Favourite Mistawez
    Report
    Jul 6th 2017, 4:08 PM

    @John R: Yeah, only subsidized lunch and booze for the lads n ladies in the dail.

    18
    Install the app to use these features.
    Mute Adrian
    Favourite Adrian
    Report
    Jul 6th 2017, 2:23 PM

    Eu deals are only good for Ireland when the eu isn’t screwing ireland. Our Irish politicians couldn’t do deals on penny sweets if they tried, they much prefer the easier option of just raising taxes!

    57
    Install the app to use these features.
    Mute Adrian
    Favourite Adrian
    Report
    Jul 6th 2017, 2:30 PM

    Even the FF, FG deal in our current gov is calamatous. FG are shambolic in gov, FF could have and should have brought down this gov over many issues already, threatened to do so many times while supposedly in opposition, haven’t done so. The whole setup is a joke.

    38
    Install the app to use these features.
    Mute Adrian
    Favourite Adrian
    Report
    Jul 6th 2017, 2:32 PM

    Then people aren’t happy with them, they say they’ll bring in new politics. Martin changes his suit. That’s new politics!

    17
    See 2 more replies ▾
    Install the app to use these features.
    Mute P.J. Nolan
    Favourite P.J. Nolan
    Report
    Jul 6th 2017, 4:25 PM

    @Adrian:
    Yawn

    2
    Install the app to use these features.
    Mute Adrian
    Favourite Adrian
    Report
    Jul 6th 2017, 5:40 PM

    @P.J. Nolan: you’re tired after reading and processing all that. Well fair play to you for making the effort and replying!

    3
    Install the app to use these features.
    Mute Francis Devenney
    Favourite Francis Devenney
    Report
    Jul 6th 2017, 2:17 PM

    Well that’s any loss in trade with the UK after brexit taken care of.

    44
    Install the app to use these features.
    Mute BrianMcB
    Favourite BrianMcB
    Report
    Jul 6th 2017, 2:22 PM

    Trust the Sinners to complain about good news. Bad day for Britain though. If the UK fails to get a free trade deal with Japan, you can say sayonara to Nissan etc who have car plants across Britain.

    47
    Install the app to use these features.
    Mute John
    Favourite John
    Report
    Jul 6th 2017, 2:29 PM

    @BrianMcB: They’re sinners alright. Lol

    11
    Install the app to use these features.
    Mute Ted Murray
    Favourite Ted Murray
    Report
    Jul 6th 2017, 2:56 PM

    @BrianMcB: __ Theresa will have to look down the back of sofa to see if she can give Nissan even more incentive than she did a while ago.

    12
    See 1 more reply ▾
    Install the app to use these features.
    Mute Michael Griffin
    Favourite Michael Griffin
    Report
    Jul 7th 2017, 2:53 PM

    @BrianMcB: interesting point….

    1
    Install the app to use these features.
    Mute Brendan Keegan
    Favourite Brendan Keegan
    Report
    Jul 6th 2017, 2:13 PM

    Irish should be trading with more countries outside the EU. We have dome great products which could be traded for great products in other countries. Selling cheap food to the EU is the height of our ambitions.

    40
    Install the app to use these features.
    Mute John R
    Favourite John R
    Report
    Jul 6th 2017, 3:51 PM

    @Brendan Keegan: We don’t sell “cheap” food to the EU and in fact the EU subsidises our agricultural market. If we want to sell food outside the EU we can and we do but we have to do it at the world price which is typically much lower. Ireland has a large export trade outside the EU. In fact we are one of the most open economies in the entire world. Only a country of idiots would not seek to sell to the consumers on their doorsteps in one of the richest markets in the world – the EU. But Ireland sells many goods and services outside of the EU.

    27
    Install the app to use these features.
    Mute Ollie O'Brien
    Favourite Ollie O'Brien
    Report
    Jul 7th 2017, 9:13 AM

    @John R: in fact we subsidise our agri business by letting the rest of eu fish our waters . We be better off we subsidised our agri business from our original fisheries . We are been screwed. At the very least threy could have force all catches in irish waters to be processed in ireland. Shambles

    2
    Install the app to use these features.
    Mute Darren Bates
    Favourite Darren Bates
    Report
    Jul 6th 2017, 2:09 PM

    Excellent news.

    30
    Install the app to use these features.
    Mute Fred Jensen
    Favourite Fred Jensen
    Report
    Jul 6th 2017, 2:25 PM

    And wasn’t there a major beef deal with the US announced recently? Great for Irish faming and perfect timing with Brexit around the corner, need more diversificaton of markets.

    27
    Install the app to use these features.
    Mute De Mad Hoor
    Favourite De Mad Hoor
    Report
    Jul 6th 2017, 2:16 PM

    Ireland would be better off making its own deals.

    27
    Install the app to use these features.
    Mute Francis Devenney
    Favourite Francis Devenney
    Report
    Jul 6th 2017, 2:19 PM

    @De Mad Hoor: Because a market of 4 million has more negotiating power than a market of 300 million?

    95
    Install the app to use these features.
    Mute Paul Fahey
    Favourite Paul Fahey
    Report
    Jul 6th 2017, 2:25 PM

    @Francis Devenney: The market of 400 million does not disappear you know. There may be tariffs to pay, but the ability to control your own currency can negate those.

    22
    See 6 more replies ▾
    Install the app to use these features.
    Mute Francis Devenney
    Favourite Francis Devenney
    Report
    Jul 6th 2017, 2:36 PM

    @Paul Fahey: I’m not talking about what we sell I talking about the clout we would have at the table When we say “We have nearly a million drivers, now most of them hang on to their cars for ages and a lot wont necessarily buy your cars but we should be able to shift a thousand a year….Now about that 43,500 of beef”

    16
    Install the app to use these features.
    Mute JayK
    Favourite JayK
    Report
    Jul 6th 2017, 3:31 PM

    “the ability to control your own currency can negate those.”

    Yes, we’ll have the ability to control our own currency. Which will, of course, by worth approximately nothing after we leave the EU. Who needs international trade? Look at North Korea, they’ve got a space programme so they must be doing pretty well.

    12
    Install the app to use these features.
    Mute John R
    Favourite John R
    Report
    Jul 6th 2017, 3:53 PM

    @De Mad Hoor: “Ireland would be better off making its own deals.” No it wouldn’t as the UK is about to discover. Trade deals take years to make and require an expertise that most countries now lack. Economic blocs are now the dominant trading paradigm. Trying to make your way outside of those blocs is extremely difficult especially for small countries. We have nothing equivalent in market share to offer them and would always be at the back of the queue.

    13
    Install the app to use these features.
    Mute Michael Griffin
    Favourite Michael Griffin
    Report
    Jul 7th 2017, 2:56 PM

    @De Mad Hoor: ireland wouldnt be able to make some of those bigger international deals

    1
    Install the app to use these features.
    Mute Michael Griffin
    Favourite Michael Griffin
    Report
    Jul 7th 2017, 2:57 PM

    @Francis Devenney: yeah thats the point big blocs can make big deals…

    1
    Install the app to use these features.
    Mute Cathal S Byrne
    Favourite Cathal S Byrne
    Report
    Jul 8th 2017, 4:22 AM

    @Michael Griffin: nonsense….Switzerland has had a trade deal with Japan for years

    1
    Install the app to use these features.
    Mute Eddie Really
    Favourite Eddie Really
    Report
    Jul 6th 2017, 3:37 PM

    One thing of note here. This deal took 4 years to reach this point and even now it is just a “political agreement”.
    And people believe Brexit will happen in just 2 years! Impossible.

    19
    Install the app to use these features.
    Mute Goldberg
    Favourite Goldberg
    Report
    Jul 6th 2017, 2:31 PM

    The EU does a trade deal with major world economy – sounds like a template for a deal with the UK – half the population of Japan but in far more proximity to the EU

    14
    Install the app to use these features.
    Mute John R
    Favourite John R
    Report
    Jul 6th 2017, 3:54 PM

    @Goldberg: But there will still be tariff barriers with Japan as there probably will be with the UK.

    5
    Install the app to use these features.
    Mute Jim Doherty
    Favourite Jim Doherty
    Report
    Jul 6th 2017, 2:12 PM

    We’ll be awash with sushi and saki!

    13
    Install the app to use these features.
    Mute Brendan Keegan
    Favourite Brendan Keegan
    Report
    Jul 6th 2017, 2:14 PM

    @Jim Doherty: Great. I love Japan.

    18
    Install the app to use these features.
    Mute Ken Hayden
    Favourite Ken Hayden
    Report
    Jul 6th 2017, 2:17 PM

    @Jim Doherty: And Geisha girls , Yahoo !

    15
    See 2 more replies ▾
    Install the app to use these features.
    Mute Deborah Behan
    Favourite Deborah Behan
    Report
    Jul 6th 2017, 2:30 PM

    @Jim Doherty: can’t wait!!

    3
    Install the app to use these features.
    Mute Alois Irlmaier
    Favourite Alois Irlmaier
    Report
    Jul 7th 2017, 2:47 AM

    @Jim Doherty: Fukushima has made a mess out of the Pacific Ocean?

    1
    Install the app to use these features.
    Mute Laurence O Neill
    Favourite Laurence O Neill
    Report
    Jul 6th 2017, 3:24 PM

    VRT is an illegal tax and even if it was done away with they would introduce another tax to compensate

    10
    Install the app to use these features.
    Mute John R
    Favourite John R
    Report
    Jul 6th 2017, 3:55 PM

    @Laurence O Neill: VRT is not illegal. It is perfectly lawful. I’m surprised given your ignorance that you didn’t claim it was also unconstitutional.

    9
    Install the app to use these features.
    Mute Alois Irlmaier
    Favourite Alois Irlmaier
    Report
    Jul 7th 2017, 2:43 AM

    First there was GATT and then that became WTO and tariffs before 1947 were 22% on goods. They have been doing this since 1947 and it seemed that the World Bank and the IMF caused GATT to turn into the WTO which in turn you could say created the Euro and the EU from the EEC. The WTO became the bouncer / bodyguard for the EU but seemed to work for the IMF and World Bank instead?
    My 9:13pm post in http://www.thejournal.ie/readme/we-need-to-talk-about-brexit-and-cause-of-political-extremes-3196402-Jan2017/ might add clarity…
    Everyone wants free trade and all they seem to and everyone really want to do is to keep creating new and newer laws to add onto older laws rather than just scrapping everything? Some will argue that GATT and the WTO created more barriers to trade and if anyone says no to that then just look at Brexit and compare that atmosphere and the talks around that?

    The fact is with CETA, the small business, the self employed and the small farmer will be squeezed out of the markets by competition because as goods get cheaper then only the large businesses will be able to sell at low cost then but no one is saying that?

    4
    Install the app to use these features.
    Mute Louise Dunne
    Favourite Louise Dunne
    Report
    Jul 6th 2017, 4:00 PM

    Good man Ken, like the way you’re thinking. We all need to be much more optimistic.. Great deal

    4
    Install the app to use these features.
    Mute Jadiel Mean
    Favourite Jadiel Mean
    Report
    Jul 6th 2017, 2:51 PM

    We are a sincere Government Approved registered and certified private money lender permitted to render financial assistant to individual and cooperate bodies, ranging from the Amount of $5,000 to $100,000,000 Million Dollars , Euro and Pounds with long loan repayment period of 1 year to 20 years.
    Loan Available are Business, Personal, House,Travel and Student Loans. Apply for a loan today. Its Easy and fast to get at 3% interest rates and monthly installment payments. Check-out this great offer. If you are interested do get back us
    Contact via E-mail: royalworldfundings@gmail.com

    3
    Install the app to use these features.
    Mute Matt Connolly
    Favourite Matt Connolly
    Report
    Jul 6th 2017, 3:22 PM

    @Jadiel Mean: Are you registered in the Ireland or Japan?

    15
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.
JournalTv
News in 60 seconds