An accord expected to boost U.S. farm exports to Japan may not be complete in time for signature by President Trump and Prime Minister Shinzo Abe on the sidelines of the U.N. General Assembly this week. The so-called mini-deal would cover agriculture and digital trade but is being held up by Tokyo’s request that the United States promise not to impose tariffs on cars imported from Japan.
If the limited agreement is not ready for signature when Trump and Abe meet on Wednesday, the nations may issue a joint statement and continue work on the pact, reported the New York Times, based on information from unnamed sources. Japan has suggested a provision that would cancel its concessions, including greater market access for U.S. food and ag exports, if its cars are taxed. Trump has said the threat of automobile tariffs provides leverage in the talks. The Washington Post quoted a trade source as saying the circuit-breaker proposal “is a smart move by the Japanese.”
The trade deal is expected to give U.S. producers the same level of market access to Japan that Tokyo has granted to “TPP-11” nations and the EU. The U.S. trade representative’s office has said the agreement would “open up markets to over $7 billion” of U.S. farm exports and “lead to substantial reductions in tariff and non-tariff barriers,” benefiting beef, pork, wheat, dairy, wine, ethanol and other products.
A “mini-deal” with Japan would be the opening step to broader negotiations.