U.S. farmers will gain broader access to Japanese consumers under an agreement signed by Prime Minister Shinzo Abe and President Trump on Wednesday in New York. The White House says Japan “will eliminate or significantly lower tariffs for American beef, pork, poultry, wheat, cheese, wine, certain nuts and berries, cherries, ethanol, and more — a major win for our farmers, ranchers, and growers.”
Japan, the third-largest market for U.S. farm exports, is expected to buy 9 percent, or $12.8 billion worth, of the products. Negotiations began a year ago toward a new, comprehensive trade pact between the nations. This interim deal, which also locks in tariff-free digital commerce, would take effect in January. Negotiations on a broader-ranging trade deal would begin four months later, said NPR.
“We’re working on phase two already with Japan,” Trump said after signing the agreement. Farm groups saluted the move. Zippy Duvall, president of the American Farm Bureau Federation, added, “What we need in the future is more agreements like this all around the world.”
Trump cited the billions of dollars the administration has sent to farmers to mitigate the impact of the Sino-U.S. trade war: $8.6 billion in 2018 and nearly $5 billion so far this year, with up to $14.5 billion available. “And the reason I did it is because you’ve been so loyal,” he said, in holding out for fairer trade relations with China. “Farmers said, ‘Take your time. We’re suffering.’ But I took the suffering away, in all fairness. But if I didn’t do that, you’d still be with me because you’re great patriots.”
“When implemented, this agreement will enable American producers to compete more effectively with countries that currently have preferential tariffs in the Japanese market,” said the U.S. trade representative’s office, referring to concessions made by Japan in pacts with the TPP-11 nations and the EU. “Under this first-stage initial tariff agreement, Japan will eliminate or reduce tariffs on an additional $7.2 billion of U.S. food and agricultural products.”
For its part, the United States will eliminate or reduce tariffs on $40 million worth of Japanese agricultural products. It will also reduce or eliminate tariffs on “certain industrial goods from Japan such as certain machine tools, fasteners, steam turbines, bicycles, bicycle parts, and musical instruments,” said the U.S. trade representative’s office.
To read a fact sheet from the trade office about the agricultural parts of the agreement, click here.
A fact sheet on the interim agreement is available here.