The ink is set after President Trump signed the U.S. -Japan trade agreement at the White House-a deal he promises will benefit the agricultural economy.
The president had called the Trans-Pacific Partnership agreement a awful deal for the US, The Hill reported.The other 11 Pacific Rim countries, including big farm producers such as New Zealand and Canada, went ahead without the US and were getting preferential treatment in Japan.While rewarding American farmers, the new US-Japan deal do not resolve differences over trade in autos.
President Trump will continue to work towards achieving a final comprehensive trade agreement with Japan. The other 11 Pacific Rim countries, including big farm producers such as New Zealand and Canada, went ahead without the United States and were enjoying preferential treatment in Japan.
America's rice growers won't benefit from the new bilateral trade deal, as tariffs and quotas on United States rice imported to Japan set in the early 1990s remain in place. The TPP would have eliminated Japan's tariffs of up to 40 percent on USA cheese over 16 years, but dairy industry officials say they eventually expect to be on par with TPP countries.
The White House announced earlier Monday that the US-China trade talks were due to resume on Thursday, when Beijing's top trade envoy Liu He is due to meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
But Japanese automakers were disappointed that the United States kept existing auto tariffs at 2.5%.
The accord covers agricultural exports and digital trade.
Official figures indicate that in 2018 the USA trade deficit with Japan was 58 billion dollars, and the Asian nation exported $51 billion dollars worth of cars to the US.
Reducing tariffs on fresh and frozen beef and pork.
This agreement will benefit trade in innovative products and services where the United States is a worldwide leader, and will ensure that American businesses have a level playing field in areas like video, music, e-books, and software. US business groups are holding out for a broader deal that would give American companies more access to Japan in businesses such as insurance and pharmaceuticals.
U.S. soybean exports to China have risen in recent weeks, however.
The story is the same for US pork exports to Japan, which topped $1.6 billion in 2018 but now face a significant tariff disadvantage compared with TPP and European Union countries. USA wheat represents about 50 percent of all the wheat Japan imports each year, now valued at more than $600 million. Cloud computing and new financial technologies were still new and being developed during the many years TPP was negotiated, so that deal included carve outs that would have allowed some countries to require local housing of financial sector data.