Japan-EU deal shows US is not becoming great, but vulnerable

Before sitting down with the United States for trade talks later this month, Japan is holding some good cards.

On Tuesday, Japan and the European Union signed the world's largest reciprocal trade deal that will eliminate nearly all tariffs. The agreement came in stark contrast with the new duties the United States has slapped and will slap on its trading partners.

The EU-Japan economic partnership agreement will create a free trade zone with a total population of about 600 million, accounting for nearly 30 percent of the world's gross domestic product and 40 percent of global trade.