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U.S. and Japan sign partial trade deal

The U.S. and Japan have signed a limited trade deal that includes several positives for the agriculture sector.

President Trump and Japanese Prime Minister Shinzo Abe signed the deal on the sidelines of the United Nations meetings in New York Wednesday.  It includes what Trump says are around seven billion dollars’ worth of U.S. corn, pork, beef, wheat, cheese, wine, and additional products.

The U.S. Trade Representative’s office says the agreement gives market access for high-quality U.S. food and agricultural products by eliminating tariffs, enacting meaningful tariff reductions, or allowing a specific quantity of imports at a low duty.  The USTR officials say the tariff treatment for the products covered in this agreement will match the tariffs that Japan provides preferentially to countries in the CP-TPP agreement.

American products benefitting from this enhanced access include fresh and frozen beef and pork.  Tariffs will be eliminated immediately on over $1.3 billion of U.S. farm products including sweet corn, sorghum, food supplements, blueberries, cranberries, broccoli, walnuts, and almonds.

American wheat and barley will have reduced mark-ups in Japan.  Products including wheat, wheat products, malt, and corn starch will have preferential access with for a specified quantity of imports, usually with no tariff rate.

The U.S. and Japan are still negotiating on some products, including Japanese auto import tariffs.