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maltatoday | WEDNESDAY • 18 JULY 2018 11 ANALYSIS www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Japan, EU sign trade deal to eliminate nearly all tariffs THE European Union and Ja- pan signed a landmark deal on Tuesday that will eliminate nearly all tariffs on products they trade. The ambitious pact signed in Tokyo runs counter to Presi- dent Donald Trump's moves to hike tariffs on imports from many US trading partners. It covers a third of the global economy and markets of more than 600 million people. "The EU and Japan showed an undeterred determination to lead the world as flag-bearers for free trade," Abe said at a joint news conference with European Council President Donald Tusk and European Commission President Jean-Claude Juncker. Tusk praised the deal as "the largest bilateral trade deal ev- er." He said the partnership is being strengthened in various other areas, including defence, climate change and human ex- change, and is "sending a clear message" against protectionism. The leaders did not men- tion Trump by name, but they did little to mask what was on their minds — highlighting how Europe and Japan have been pushed closer by Trump's ac- tions. The agreement was largely reached late last year. The cer- emonial signing was delayed from earlier this month because Abe cancelled going to Brussels over a disaster in southwest- ern Japan, caused by extremely heavy rainfall. More than 200 people died from flooding and landslides. The measures won't kick in right away and still require leg- islative approval. But they will bring Japanese consumers lower prices for European wines, pork, handbags and pharmaceuticals. Japanese machinery parts, tea and fish will become cheaper in Europe. The deal eliminates about 99 percent of the tariffs on Japanese goods sold to the EU. About 94 percent of the tariffs on Euro- pean exports to Japan will be lifted, rising to 99 percent in the future. The difference reflects exceptions on such products as rice, which enjoys strong politi- cal protection from imports in Japan. Overall, European farmers will benefit, Juncker said, though European consumers will be able to more easily buy luscious Kobe beef and famous Yubari melons. The EU said the trade liberali- sation will help raise European exports of chemicals, clothing, cosmetics and beer to Japan. Japanese will get cheaper chees- es, such as Parmesan, gouda and cheddar, as well as chocolate and biscuits. The imported wine and cheese could hurt sales by Japanese wineries and dairies, but Japa- nese consumers have histori- cally coveted such European products. The major step toward liber- alising trade has been discussed since 2013. Apart from its deal with the EU, Japan is working on other trade agreements, including a far-reaching trans-Pacific deal. The partnership includes Aus- tralia, Mexico, Vietnam and other nations, although the US has withdrawn. Abe praised the deal with the EU for helping his "Abenom- ics" policies, designed to wrest the economy out of stagnation despite a shrinking population and cautious spending. Japan's growth remains heavily depend- ent on exports. Bottles of Beaujolais Nouveau wine are displayed in a wine store at Issy Les Moulineaux, outskirts of Paris Instagram's new tools for fashion retailers INSTAGRAM has become an important source of style inspiration for shoppers throughout the globe. More than 532 million posts were tagged #fashion worldwide as of the week ending 6 July, and in an average month, 180 million Instagrammers visit a brand's website, email or send a message to learn more about a business or product. Two recent launches will enable brands to capital- ise further on this engage- ment. Instagram Shopping launched in March allows direct purchasing on Insta- gram. IGTV was launched in June as an app and a space on the platform for videos up to an hour long. Time spent watching vid- eo on Instagram soared more than 80% year on year in June 2017, and brands have responded to this increased interest. Fashion retailer N Brown Group, which posted a travel- clothing edit featuring plus- size blogger Chloe Elliott for its Simply Be brand, and style advice from rapper Wretch 32 for Jacamo, says IGTV is useful for engagement. N Brown Group creative director Beth Lowry says: "This new channel allows us to streamline really great content where our custom- ers, both old and new, are al- ready engaged." The Simply Be channel has 72,000 UK customers. Instagram Stories lets users post photos and videos that vanish after 24 hours and has changed how people use Instagram. Users are post- ing more real-life moments instead of perfectly filtered images, and so are brands – Gap's Logo Remix campaign on Stories, for instance, paid homage to its logos of the past. The additional frames that users could tap through allowed the brand to tell more of a story. Fashion brands and retailers are lead- ing the way with impactful Instagram content. Instagram launched IGTV last month, and the social platform's new features are boosting consumer engagement