"The conclusion of the EU-Japan free-trade agreement is a good sign for Europe, for Japan and for the global trade, especially since the Trans-Pacific Partnership has failed to be implemented for the time being", Alexander Anton, the association's secretary general, said.
"Ahead of the G20 summit tomorrow, I believe Japan and the European Union are demonstrating our strong political will to fly the flag for free trade against a shift toward protectionism", Japanese Prime Minister Shinzo Abe said at a news conference, Reuters reported.
The Japan-EU deal is expected to spur trade and investment by removing or lowering tariffs on a broad range of products, including farm and industrial products, while it is also to set common trade rules.
Brussels wants Japan to eliminate its 30 percent tariffs on some EU-made cheese, while Tokyo wants duties cut on cars which it exports to the 28-member bloc. The EU is the world's largest cheese exporter, while Japan's automakers have sought a level playing field in Europe with counterparts from South Korea.
The EU-Japan deal bolsters the free-trade credentials of Abe and is a political triumph for German Chancellor Angela Merkel as she prepares to host the Group of 20 summit in Hamburg.
It is hoped that the value of exports from the European Union could increase by as much as €20 billion, meaning more possibilities and jobs in many European Union sectors such as agriculture and food products, leather, clothing and shoes, pharmaceuticals, medical devices and others.
"EU wine now has the tools to reconquer the market". EU official insist that the deal would be a major boon for European farmers who would gain access to a huge market that appreciates European products.
Belgium's Wallonia region held up the ratification process for the trade deal with Canada past year, nearly hindering the signing of the accord. Import duties on Japanese cars now stand at 10 percent, but the new trade agreement will see these barriers removed.
"If we take into consideration the time it took for the European and Canadian agreement, it took three years to finalize..." Tariffs on wine exports will disappear from day one of entry into force.
The European Commission also noted that the deal will "include a specific commitment to the Paris climate agreement".
The two sides are expected to work out a final version of the EPA in due course.
"The EU is more and more engaged globally", Tusk said. The deal aims to support global trade in the wake of rising protectionism in the US.