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Several U.S. commodities gain in the proposed trade deal with Japan

U.S. Agriculture Secretary Sonny Perdue says the proposed trade deal with Japan is good for farmers.

“Obviously beef and wheat and other crops such as corn will do very well,” said Secretary Perdue, in an interview provided by the USDA.

Tthe agreement in principle is especially good for U.S. livestock producers, according to Greg Ibach, undersecretary at the USDA.

“This agreement, we believe, will level the playing field between us and our competitors, especially in the red meat sector,” said Ibach.

The deal corrects some of the competitive issues created when the U.S. pulled out of the Trans-Pacific Partnership talks in 2017, said Ibach.

“There was beginning to be a tariff differential not in our favor, especially with Australia as one of our big competitors in that marketplace,” said Ibach.

The agreement, if implemented, gradually lowers the Japanese tariff on U.S. beef from its current 38-and-a-half percent, which Ibach says should make U.S. beef more competitive in that market.