The E.U.-Japan Trade Deal: What’s in It and Why It Matters

The European Union and Japan announced a broad agreement on Thursday that would lower barriers on virtually all the goods traded between them, a pointed challenge to President Trump on the eve of a summit meeting of world leaders in Germany. Though the deal still needs further negotiation and approval before it can take effect, it represents an act of geopolitical theater, a day before a Group of 20 summit meeting begins in Hamburg. At a meeting of G-20 finance ministers in March, Steven Mnuchin, the United States Treasury secretary, pointedly declined to endorse a statement in favor of free trade. Prime Minister Shinzo Abe of Japan said the deal signified the creation of “the world’s largest free, advanced, industrialized economic zone.” The core of the agreement aims to increase the flow of Japanese cars to Europe and of European food to Japan.