Major economies show no inclination to accept American designs on trade — an attitude on display on Thursday as the European Union and Japan agreed to the broad outlines of a free trade deal before a summit meeting of world leaders. If completed, the deal would further the exchange of goods and services between their two markets while, in relative terms, diminishing opportunities for American companies.
These two trading powers, both bedrock American allies, are effectively proceeding with plans to bolster globalization just as the United States is turning to protectionism. Large areas of the global economy are now on divergent paths, creating more uncertainty for multinational companies.
Last fall, Canada and the European Union struck a mammoth trade deal, establishing the rules for a significant chunk of commerce across the Atlantic. The bloc’s latest deal tethers its fortunes closer to Asia and to Japan, which has the world’s third-largest economy.
By contrast, the United States debates the merits of erecting a wall along its southern border, argues about the legality of barring immigrants from several predominantly Muslim nations, and contemplates imposing tariffs on steel imports.
