The Trump administration announced Wednesday that it had reached an “early agreement” on a trade deal with Japan covering agriculture and digital trade.
The deal would reduce Japanese tariffs on $7.2 billion worth of U.S. farm products. Beef and pork tariffs would be reduced, though it was unclear by how much. The agreement would also eliminate Japanese tariffs on other products, including various types of berries, nuts, cheeses, as well as ethanol and wine. In exchange, the United States will eliminate or reduce tariffs on 42 products from Japan that total $40 million in imports last year.
The deal would also prohibit customs duties or other discriminatory treatment, such as data localization requirements, on digital products sold online such as videos, music, e-books, software, and games.
“Once this agreement is implemented, over 90 percent of U.S. food and agricultural products imported into Japan will either be duty free or receive preferential tariff access,” the U.S. Trade Representative’s Office announced.
The administration said Japan would reduce the tariffs for products such as fresh and frozen beef and pork “in stages” but did not provide further details. The announcement noted that Japan would still be allowed “limited use of safeguards by Japan for surges in imports of beef, pork,” likely meaning the ability to impose quotas on imports. The exact circumstances it would be allowed to do this under was unclear.
American Farm Bureau Federation President Zippy Duvall called the announcement a “positive step” and urged the administration to complete the deal. He noted that Japan is the fourth-largest export destination for U.S. farmers, with nearly $13 billion in goods a year being shipped there. “This agreement, once signed, will lower tariffs and put U.S. farmers and ranchers on a level playing field to compete in Japan with countries that participate in the Trans-Pacific Partnership. That’s good news,” Duvall said, adding, “The time for trade wars has come and gone. We are thankful the administration has reached this deal and we urge trade negotiators to achieve many more like it.”
The White House and Japan have been working toward a trade deal for several months. Earlier this month, President Trump announced an “initial trade agreement” with Japan. Japanese officials stated the provisional agreement would likely allow it to avoid the 25% tariffs on autos and auto parts imports that Trump has called for but held off on implementing.
