U.S.-Japan Trade Agreement Cuts Tariffs on Many Fresh Produce ItemsSeptember 26, 2019
The U.S.-Japan Trade Agreement will provide America’s farmers and ranchers enhanced market access in our third largest agricultural export market, says the Office of the U.S. Trade Representative.
When implemented, this Agreement will enable American producers to compete more effectively with countries that currently have preferential tariffs in the Japanese market. The deal President Trump is delivering will provide our farmers, ranchers, and agribusinesses with market access for high quality U.S. food and agricultural products to 127 million Japanese consumers. In the U.S.-Japan Trade Agreement, Japan has committed to provide substantial market access to American food and agricultural products by eliminating tariffs, enacting meaningful tariff reductions, or allowing a specific quantity of imports at a low duty (generally zero).
Importantly, 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.
KEY ELEMENTS: U.S. AG EXPORTS TO JAPAN
Out of the $14.1 billion in U.S. food and agricultural products imported by Japan in 2018, $5.2 billion were already duty free. Under this first-stage initial tariff agreement, Japan will eliminate or reduce tariffs on an additional $7.2 billion of U.S. food and agricultural products. Over 90 percent of U.S. food and agricultural imports into Japan will either be duty free or receive preferential tariff access once the Agreement is implemented.Tariff Elimination: Tariffs will be eliminated immediately on over $1.3 billion of U.S. farm products including, for example: almonds, blueberries, cranberries, walnuts, sweet corn, grain sorghum, food supplements, broccoli, and prunes.
Other products valued at $3.0 billion will benefit from staged tariff elimination. This group of products includes, for example: fresh cherries, frozen potatoes, oranges, and tomato paste.
KEY ELEMENTS: JAPAN AG EXPORTS TO THE UNITED STATES
The United States will provide tariff elimination or reduction on 42 tariff lines for agricultural imports from Japan valued at $40 million in 2018. Products include: certain perennial plants and cut flowers, persimmons, green tea, chewing gum, certain confectionary products, and soy sauce. The United States has also agreed to modify its global WTO tariff rate quota for imports of Japanese beef, enabling Japanese beef producers to compete for a larger share of the global TRQ quantity.
With Japan’s $5 trillion economy, this Agreement will expand U.S. food and agricultural exports, increase farm income, generate more rural economic activity, and promote job growth.
President Trump and Prime Minister Abe have agreed that these early outcomes will be followed by further negotiations to address remaining areas of interest to each government. The United States and Japan will continue working to achieve a comprehensive trade agreement that results in a more fair and reciprocal trade and economic relationship.
By Blue Book Services