BRUSSELS- Japan and the European Union reached a broad accord in their four-year-old trade negotiations on Wednesday, set to create a free trade zone that covers 40 pct of trade around the globe.

Japanese Foreign Minister Fumio Kishida and European Commissioner for Trade Cecilia Malmstroem, meeting in Brussels, resolved differences over exports of European cheese to Japan.

"We confirmed the achievement of a broad accord," Kishida told reporters after the meeting.

"We've reached political agreement at Ministerial level," Malmstroem said on Twitter.

The broad accord will be announced in Brussels on Thursday when Japanese Prime Minister Shinzo Abe holds talks with European Council President Donald Tusk and European Commission President Jean-Claude Juncker.

Combined gross domestic product of Japan and the EU accounts for 30 percent of the world's total and exceeds that of the 11 member countries including Japan of the Trans-Pacific Partnership since the United States withdrew from the free trade deal earlier this year.

The Japan-EU economic partnership agreement is expected to put a damper on growing protectionism around the world.

Among issues that had been outstanding in the final stages of the EPA negotiations launched in April 2013, Japan agreed to set a low-tariff import quota for European cheese and eliminate its tariffs on some items, according to EU sources.

The EU agreed to abolish its 10 percent tariff on Japanese cars seven years after the EPA takes effect, the sources said.

Kishida and Malmstroem met after they failed to resolve differences over key issues at a two-day EPA session in Tokyo through Saturday.

Of the 27 issues in the negotiations, the broad accord covers those that both sides have strong interest in, including tariffs. Other issues such as investment, which includes procedures to settle disputes between companies and host countries, will be set aside until after the summit between Japanese and EU leaders.

Following the summit, the Abe administration will work promptly to gain parliamentary approval for the EPA with the EU and to provide assistance to domestic producers of dairy goods, pork, lumber and other items to be affected by the deal. (Jiji Press)