The United States and Japan will open negotiations on a free trade agreement “that can produce early results” on manufactured goods, announced President Trump and Prime Minister Shinzo Abe on Wednesday. In the joint statement, however, Japan said that in the upcoming negotiations it would not lower tariffs on food, agriculture, and fishery imports below the terms of the Trans-Pacific Partnership.
The United States indicated it would refrain from imposing tariffs on automobiles during the negotiations, said the Kyodo news service. The U.S.-Japan statement said a U.S. goal was increased domestic production of motor vehicles and more auto industry jobs. “For Japan, with regard to agricultural, forestry, and fishery products, outcomes related to market access as reflected in Japan’s previous economic partnership agreements constitute the maximum level,” the news service said.
Japan resisted earlier U.S. attempts at bilateral negotiations, suggesting instead that the United States rejoin the TPP. One of Trump’s campaign promises, carried out as soon as he took office, was withdrawal from the 12-nation trade agreement, which covers 40 percent of the global economy. The remaining 11 countries went ahead with the pact. For U.S. agriculture, the big prize of the TPP was supposed to be greater access to the Japanese food market.
During a news conference, Trump said newspaper advertisements by China were an attempt to turn Farm Belt voters against him. “The farmers were getting — have been getting hurt in our country for many years. And that’s because they had artificial barriers, artificial tariffs — all sorts of things have made it impossible for them. I’m opening it up. And you know the one that gets it best? The ones that get it best are the farmers themselves. These are great patriots. These are incredible people. They’re going to do so well.”
The Canadian ambassador to the United States said his nation wants to reach agreement with Washington on the new NAFTA but that there are red-line issues to resolve, including dispute resolution procedures and protection from tariffs, said Bloomberg. “I don’t like playing chicken with the future of the Canadian economy,” said Ambassador David McNaughton at a Politico event in Toronto. U.S. trade officials have pressed for concessions on dairy exports and have said the White House might go ahead on a bilateral deal with Mexico rather than wait for Canada to come to terms.
Canada is the largest customer for U.S. farm exports, and Mexico is No. 2. Japan is No. 4, with purchases forecast at $12.4 billion this fiscal year.
Agriculture Secretary Sonny Perdue said negotiations with Japan carried “great potential” for breakthroughs. “Today’s announcement is further proof that President Trump’s approach to trade — standing strong for American interests and bringing other countries to the table — will benefit our entire economy, including the agricultural sector.”