EU Commission President Jean-Claude Juncker claimed that the EU-Japan Economic Partnership agreement is the worlds largest trade agreement. He made this claim on his official twitter account on 12 December.
The EU-Japan Economic Partnership Agreement has been in discussion since 2013, and has been passed by the Japanese government and the European Parliament. Numerous trustworthy media outlets like BBC have called the agreement the world’s largest, based on Gross Domestic Product (GDP).
According to the latest data from the CIA World Factbook, the combined GDP of the EU and Japan is 26.279 trillion US Dollars (USD), with respective GDP’s of 20.85 trillion USD and 5.429 trillion USD. The latest data for the world GDP or Gross World Product (GWP) is from 2017, and puts the GWP at 80.684 trillion USD. After a quick calculation this makes the claim that this trade agreement equals almost one-third of the world’s GDP true.
But does this make it larger than any other trade agreement in the world?
Another trade agreement often considered the world’s largest is the NAFTA agreement between Mexico, the US and Canada. The new trade deal being negotiated, often called the ‘new NAFTA’, will still not be as big as the EU-Japan partnership, as the collective GDPs of the US, Mexico, and Canada is 23.617 trillion USD.
This makes the claim that this trade agreement is the largest by GDP true.
Jean-Claude Juncker’s claim that the EU-Japan Trade Partnership Agreement is the world’s largest trade deal is TRUE.
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