News

US-Japan trade deal clears final hurdle

The Diet, Japan’s Upper House, has approved the trade deal between the US and Japan, clearing the way for its implementation beginning early next year.  The Lower House approved the deal last month and the White House has said the agreement does not need Congressional approval.

The deal was agreed to by Prime Minister Shinzo Abe and President Trump earlier this year and puts the US on a more equal playing field with its competitors.  Japan will lower or remove tariffs on $7.2 billion in US farm goods, most notably the gradual reduction of its duty on US beef down from 38.5 percent to 9 percent.  Other US ag goods, like pork, wine, and cheese will also gain greater market access.

The limited U.S./Japan trade deal is also expected to be a positive for U.S. grain exports. The deal lowers tariffs on corn, some corn products, and sorghum to effectively zero, has a staged reduction on duties for U.S. ethanol, and corn and sorghum flour, and is also expected to increase wheat export trade. Japan is the second biggest buyer of U.S. corn and a significant purchaser of wheat and sorghum.

Negotiators will resume talks for a full trade deal following the implementation of the first phase of the agreement. 

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!

Brownfield Ag News