Us Japan Trade Agreement Agriculture

by Jill & Cathy on April 14, 2021

Prime Minister Shinzo Abe and U.S. President Donald Trump have also agreed to continue negotiations for a more comprehensive trade agreement on services and investment between the world`s largest and third-largest economies, which together account for about 30% of global GDP. With respect to Japanese exports to the United States, the agreement will not affect U.S. tariffs on imports of auto parts and auto parts manufactured in Japan. On May 17, 2019, President Trump declared that imports of vehicles and parts, particularly from Japan and the European Union, were beating the national security of the United States, which could result in 25% tariffs on imports of vehicles and parts from Japan. USTR Robert Lighthizer, however, said that, given the new trade agreement “at this point,” the Trump administration has no intention of pursuing such import restrictions against Japan1. President Trump and Prime Minister Abe agreed that these initial results will be followed by further negotiations to address the remaining areas of interest to any government. The United States and Japan will continue to work on a comprehensive trade agreement that will lead to a more equitable and reciprocal trade and economic relationship. This gives U.S.

farmers the same access to the Japanese market as competitors such as New Zealand, Australia and Canada. The U.S. dairy industry is facing a surplus of cheeses that is made more difficult by many commercial disputes. During the negotiations, Japanese negotiators sought to ensure that the Trump administration would not impose additional national security rights on Japanese cars and spare parts. Members of Japan`s national regime criticized the agreement for not receiving a written guarantee on the agreement and because U.S. tariffs of 2.5% on cars and 25% on HGVs had not been eliminated. Nevertheless, Japanese officials said that no additional U.S. tariffs will be imposed on Japanese cars “as long as the agreement is faithfully enforced,” and USTR Robert Lighthizer said after the signing ceremony that “at this point, we certainly have no intention of the president to do anything about cars, out of 232s, on Japan.” In addition, free cross-border data transfers and a ban on geolocation of data are an essential part of the agreement as a precondition for commercial activity.

In addition, restrictions on data offshoring will be extended to financial institutions and other financial service providers as long as U.S. or Japanese financial supervisory authorities have immediate, direct, complete and ongoing access to financial data. Japan will also create U.S. quotas for nine categories of agricultural products that provide access to a certain amount of U.S. exports at a preferential tariff rate.

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