On Wednesday, the President of U.S. Donald Trump said that the United States and Japan reached an early trade agreement. The initial stage of the agreement will open markets up to around $7 billion in the United States agricultural products, and Trump said while at a signing ceremony with the Prime Minister of Japan, Shinzo Abe at the UN. Also, Japan will cut tariffs on products like pork and beef, and remove tariffs on goods like broccoli, almonds, and blueberries.
Furthermore, Trump said that the two countries made promises for digital trade of worth $40 billion. It would ban custom duties on goods such as e-books, videos, and music, among other provisions. He added, the document they signed highlighted “the important steps they are taking toward a reciprocal and fair-trade agreement.” Later Wednesday, the United States and Japan said in a joint statement that they desired to complete their trade dialogs within about four months.
They said that both states would refrain from taking steps against the soul of these agreements and joint statement while devotedly implementing these agreements. The developing deal comes as the U.S. president tries to lessen damage from his efforts to crackle down on what he termed unfair global trade practices. Specifically, he tried to enhance the farmers of America as an enduring trade dispute with China hits the United States industry.
Moreover, threatened tariffs of Trump on Japanese autos have complex the for signing a new trade agreement. In 2018, Japan sent $51 billion in vehicles to the United States, the largest export category of the Asian nation. Japan was fourth-largest goods trading partner of America last year.
U.S. Chamber of Commerce’s Statement
The largest business federation in the country, the United States Chamber of Commerce said in a statement after the ceremony that developing agreement will shoot economic growth and enhance sales in both states. The group added, however, it is not enough. The Chamber stressfully urges the administration to hold fast to its commitment to get an inclusive, high-standard trade deal with Japan that reports the complete range of their trade primacies, including intellectual property protection, regulatory barriers to trade and services.