Abe, Merkel laud free trade amid choppy waters for multilateralism

Germany says ‘still time’ to find Brexit solution

FE Team | Published: February 05, 2019 21:26:23

TOKYO, Feb 05 (AFP): The leaders of Germany and Japan on Monday vowed a commitment to free trade at a time when multilateralism is being buffeted, in the words of Angela Merkel, by "choppy waters".
The German chancellor said her meeting with Prime Minister Shinzo Abe was "between two national leaders who want to work together, who believe that there can be very good win-win situations when all partners work together".
She added that February 1, when the free-trade agreement between the European Union and Japan came into force, was a "special day" which has "shown that we are prepared to make agreements-even if multilateral agreements are to some extent in choppy waters".
The accord is the biggest bilateral trade deal ever signed, covering more than 630 million people and nearly one-third of global gross domestic product.
Merkel also stressed the importance of "fairness" and "reciprocity" in trade agreements at the start of her two-day trip to Japan accompanied by a large business delegation.
For his part, Abe said the two countries would "cooperate closely towards maintaining and strengthening a free and open economic system".
The German chancellor will also meet Emperor Akihito just months before he is due to abdicate and the crown prince Naruhito.
Stressing the economic aspect of the trip, she will also address German and Japanese business leaders and visit an artificial intelligence laboratory operated by electronics giant NEC.
Meanwhile, there is still time to find a solution to Britain's exit from the EU, German Chancellor Angela Merkel said Tuesday, voicing optimism on a political deal over the tricky "backstop" that has stymied progress.
Speaking to Japanese and German business leaders in Tokyo, Merkel stressed that "on the one hand, time is pressing" and businesses using "just-in-time" delivery processes could not afford lengthy customs procedures.
However, she added: "From a political point of view, there is still time. Two months is not a long time but there is still time, and this should be used by all sides."
Britain is poised to leave the EU at the end of March following a 2016 referendum.
Merkel acknowledged the issue of the unpopular Northern Ireland backstop provision was "complicating" Brexit talks.
The backstop is intended to ensure there is no return to a hard border with Ireland, but Brexit supporters fear it will keep Britain tied to EU customs rules.
She said the issue with the backstop was a "problem that is precisely defined and therefore one should be able to find a precisely defined solution".
"But this solution depends on the question of what the future relationship between Britain and the EU will be like and what type of trade deal we sign with each other," added the chancellor.