:00:00. > :00:18.Now on BBC News, it's time for Ben and World Business Report.
:00:19. > :00:22.Never mind Brexit and Trump: That's the message as the EU and Japan
:00:23. > :00:26.close in on a huge free trade deal, but can it see off the rise
:00:27. > :00:34.Plus: High steaks scandal - why a corruption probe is carving
:00:35. > :00:47.a slice out of Brazil's multi-billion dollar meat industry.
:00:48. > :00:53.In a moment, it's 30 years since KFC launched in China,
:00:54. > :00:58.but the nation's hunger for fast food is slowing.
:00:59. > :01:01.But we start in Brussels, where, in a few hours' time,
:01:02. > :01:04.the EU and Japan will sign off a major trade deal
:01:05. > :01:06.covering everything from cars to cheese.
:01:07. > :01:09.It comes despite doubts around the world about free trade deals
:01:10. > :01:12.and the rise of trade protectionism in the US under
:01:13. > :01:23.Japan and the EU account for about a third of global GDP -
:01:24. > :01:30.Both sides believe their trade relationship has room to grow,
:01:31. > :01:36.EU officials say the deal will boost the EU economy
:01:37. > :01:41.by 0.8%, and Japan's by almost a third of a percent.
:01:42. > :01:43.Among the big winners, the car industry.
:01:44. > :01:46.The EU will scrap a 10% duty on Japanese car imports,
:01:47. > :01:49.while Japan will remove barriers to entry for European automakers.
:01:50. > :02:01.Partly because of Brexit, European leaders want to reinforce
:02:02. > :02:04.the value of the EU after the UK's decision to leave.
:02:05. > :02:08.Remember, he pulled the US out of the Trans-Pacific Partnership,
:02:09. > :02:12.a major trade deal between the US, Japan and their Pacific neighbours.
:02:13. > :02:16.And talks have lapsed on the vast EU-US trade deal known as TTIP,
:02:17. > :02:27.as the head of Europe's business lobby group explains.
:02:28. > :02:34.It is important if the EU and Japan conclude this agreement just before
:02:35. > :02:38.the G20 summit. It will be an important political science for
:02:39. > :02:44.other economies that trade is good and that two of the leading G20
:02:45. > :02:51.economies are making a positive step towards free and more fair trade. --
:02:52. > :02:57.political sign. Allie Renison is Head
:02:58. > :03:07.of Europe and Trade policy How important is this deal, giving
:03:08. > :03:10.the turning away from major international trade deals? Is very
:03:11. > :03:18.important. At the end of last year, this did not look like it was going
:03:19. > :03:22.to be. There are still a lot of what they call legal scrubbing is to go
:03:23. > :03:28.on. But they did not think there were going to get this through. I
:03:29. > :03:33.think that Donald Trump pulling out of the TTIP has given them the extra
:03:34. > :03:37.kit to make sure that Japan and the EU can show that they can pick up
:03:38. > :03:40.the baton where others have dropped it. In the scale of the trade
:03:41. > :03:45.relationship between the EU and Japan, one of the things that struck
:03:46. > :03:49.me is that I am surprised they did not do you a deal like this before.
:03:50. > :03:56.Why now? It is interesting that you talk about scrapping tariffs on
:03:57. > :04:02.automobiles. That is significant for the EU and for Japan. Right now, it
:04:03. > :04:05.is interesting when looking at this transition in terms of
:04:06. > :04:10.implementation, that is one of the balancing act that both sides have
:04:11. > :04:15.had to play in terms of making concessions and scrapping duties.
:04:16. > :04:20.The other interesting thing is, you have said it will take seven years
:04:21. > :04:24.for those who take effect, but where this leaves the relationship between
:04:25. > :04:31.the UK and Japan, if Japan is going to grow closer ties and a strong
:04:32. > :04:34.relationship, does that mean that the relationship between the UK and
:04:35. > :04:39.Japan could be damaged? I think there could be eight benefit for the
:04:40. > :04:44.UK. I'm talking specifically about tariffs. If the UK can manage to
:04:45. > :04:47.retain the benefits, and the deal is signed and enforced by the time the
:04:48. > :04:52.UK leads, it could actually still apply to the UK, but that could be
:04:53. > :04:57.negotiation with the EU. I think it is in the UK's interests that this
:04:58. > :05:02.deal is enforced before it leaves the EU. What do you think the major
:05:03. > :05:06.hurdles go to be when it starts to take a fact? When will we see some
:05:07. > :05:10.backlash? With respect to automobiles, that is why you have
:05:11. > :05:14.that seven-year period. Agriculture is or is a sticking point. They have
:05:15. > :05:18.a lot of legal scrubbing to go through to make sure that they agree
:05:19. > :05:21.a deal that scrap some of the tariffs in sensitive areas, such as
:05:22. > :05:26.pork and dairy. Those are sticking points at the last minute. Thank you
:05:27. > :05:33.very much for joining us. Good to hear your thoughts.
:05:34. > :05:37.The country accounts for almost a fifth of the world's meat exports.
:05:38. > :05:40.But in March local police uncovered a bribery scheme,
:05:41. > :05:42.where health officials allegedly allowed tainted meat to reach
:05:43. > :05:44.supermarket shelves and even school meals.
:05:45. > :05:45.Although the companies involved deny wrongdoing,
:05:46. > :05:47.shares of market leader, JBS, plunged 40%.
:05:48. > :05:49.So can Brazil's reputation as the world's largest meat
:05:50. > :06:01.The BBC's Daniel Gallas reports from Brazil's Santa Fe Do Sul.
:06:02. > :06:15.The cattle on this farm roam free in Santa Fe Do Sul. Rangers here now
:06:16. > :06:18.have no one to sell the cows do. TRANSLATION: This is not like foot
:06:19. > :06:23.and mouth disease that occurs in nature. This was caused by corporate
:06:24. > :06:32.corruption. Prices fell sharply. It is the lowest price in the past four
:06:33. > :06:36.years. Farmers like this are part of an army of 4 million people that
:06:37. > :06:39.helped in Brazil into one of the world's against meat producing
:06:40. > :06:44.nations. But this scandal is bringing uncertainty to what was a
:06:45. > :06:57.very probable business. At its height, JBS employed to 60 employees
:06:58. > :07:01.-- 260,000 employees. But then it was revealed that bribes were paid
:07:02. > :07:02.to politicians at the request of the present president.
:07:03. > :07:16.TRANSLATION: Michel Temer denies the charges. JBS
:07:17. > :07:19.were involved in a scandal about brides that were paid to help
:07:20. > :07:23.officials that raise questions about the safety of Brazilian beat around
:07:24. > :07:31.the world. But JBS says that food safety was not uppermost. But such
:07:32. > :07:34.open lines between JBS and the president has had its effect. Cattle
:07:35. > :07:42.prices are tumbling and factory is closing down. The US has now banned
:07:43. > :07:44.some risen me from being sold. And Europe is investigating the quality
:07:45. > :07:48.of meat imports. TRANSLATION: The Brazilian
:07:49. > :07:52.government would need to act to get the message across that their meat
:07:53. > :07:58.is safe for consumption and defend its reputation. But with the
:07:59. > :08:03.government at war with the top meat company, that is not likely to
:08:04. > :08:07.happen soon. That war now has millions of farmers worried about
:08:08. > :08:10.the future of their businesses. A reputation that took decades to
:08:11. > :08:14.establish will likely take years to repair.
:08:15. > :08:17.Let's stay with the food industry because it's been 30 years
:08:18. > :08:27.since the first KFC restaurant opened in China.
:08:28. > :08:30.Last year KFC's US owners, Yum Brands, spun off the Chinese
:08:31. > :08:32.business into a separate company, Yum China.
:08:33. > :08:35.It's been trying to cash in on rising demand
:08:36. > :08:36.for Western-style fast food in China.
:08:37. > :08:40.As well as KFC, it also owns the Pizza Hut and Taco Bell chains
:08:41. > :08:45.across the world's number two economy.
:08:46. > :08:49.That's more than 7600 outlets throughout the country.
:08:50. > :08:52.It has just reported results for the past three months,
:08:53. > :08:53.and Rico has been looking
:08:54. > :09:08.Are you a Peter Lonard? I do enjoy the odd slice. -- pizza lover. That
:09:09. > :09:14.is good, because in China, consumers are still not into the picture. And
:09:15. > :09:22.that is why it Pizza Hut's sluggish sales have dragged down the
:09:23. > :09:35.quarterly sales of Yum China in the past quarter. Sales rose 3% in the
:09:36. > :09:39.first quarter of 2017. That was for Casey. But for Pizza Hut, it was
:09:40. > :09:45.flat. Chicken is popular in MMM. -- that was fought KFC. Yum, which is
:09:46. > :09:52.the biggest fast food brand, has been looking to bulk up the market.
:09:53. > :09:57.But there have been food safety scares and changing consumer tastes,
:09:58. > :10:02.along with a wider economic slowdown and competition. The committee has
:10:03. > :10:07.been trying to symbol by its menu as well as making a push on mobile
:10:08. > :10:11.payment and delivery. It bought a recent controlling stake in a food
:10:12. > :10:16.delivery service. With all these changes and a new strategy,
:10:17. > :10:21.hopefully we will see better numbers for KFC China this quarter.
:10:22. > :10:24.British Airways cabin crew are to stage a further two weeks
:10:25. > :10:31.of strikes, in a long running dispute over pay and benefits.
:10:32. > :10:34.So-called "mixed-fleet" cabin crew, who are paid less than longer
:10:35. > :10:37.standing staff, will walk out for 14 days on 19 July,
:10:38. > :10:39.in a strike called by the Unite union.
:10:40. > :10:42.The strike will begin three days after the end
:10:43. > :10:46.BA says instead of striking, Unite should allow its members
:10:47. > :10:53.to vote on the pay deal reached two months ago.
:10:54. > :11:00.Don't forget you can get and hat with me and some of the team on
:11:01. > :11:10.Twitter. I will be back in just a moment to go through the papers.
:11:11. > :11:13.The risk of attacks on UK soil by supporters of the self-styled
:11:14. > :11:16.Islamic State group could increase as IS