{"id":232436,"date":"2019-09-25T22:48:09","date_gmt":"2019-09-26T02:48:09","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=232436"},"modified":"2019-09-25T22:48:09","modified_gmt":"2019-09-26T02:48:09","slug":"trump-us-japan-agree-on-1st-stage-of-new-trade-agreement","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/09\/25\/trump-us-japan-agree-on-1st-stage-of-new-trade-agreement\/","title":{"rendered":"Trump: US, Japan agree on 1st stage of new trade agreement\u00a0"},"content":{"rendered":"
\"\"<\/a>
FILE: From now, Prime Minister Abe is getting into the summit meeting with President Trump in the White House. (Photo<\/a>: Prime Minister’s Office of Japan\/Facebook<\/a>)<\/figcaption><\/figure>\n

The U.S. and Japan on Wednesday signed a limited trade deal that will eliminate tariffs and expand market access on farm, industrial and digital products. But the deal does not address autos, a key sticking point during months of contentious negotiations, and President Donald Trump indicated the two countries were still working on a broader agreement.<\/p>\n

Trump and Japanese Prime Minister Shinzo Abe signed the deal on the sidelines of the U.N. General Assembly. Trump called it the \u201cfirst stage of a phenomenal new trade agreement\u201d and described it as \u201coutlining the significant steps we’re taking toward a fair and reciprocal trade agreement.\u201d<\/p>\n

\u201cThis is a big chunk, but in the fairly near future we’re going to be having a lot more comprehensive deals signed with Japan,\u201d Trump said.<\/p>\n

Abe said the agreement is good for both countries.<\/p>\n

\u201cWe have successfully covered a wide range of areas, including not only the industrial goods, but also the agricultural products and also the digital trade between the two sides,\u201d Abe said.<\/p>\n

Trump has been seeking a bilateral agreement with Japan, the world’s third largest economy, since pulling out of the Trans-Pacific Partnership trade deal after he took office. Washington would like to reduce a chronic trade imbalance that totalled $67.6 billion in 2018, according to U.S. figures<\/p>\n

The two sides reached a basic agreement in late August, but a major point of contention has been autos.<\/p>\n

Japan is worried that Trump might slap new tariffs on its automobiles, which make up a significant amount of its exports to the U.S. Japan also has pushed to eliminate the current 2.5% auto and auto parts tariff.<\/p>\n

Speaking to reporters later Wednesday, Abe said he received assurances from Trump that a previous agreement not to place more tariffs on Japanese autos or auto parts still stands.<\/p>\n

\u201cBetween President Trump and myself, this has been firmly confirmed that no further additional tariffs will be imposed,\u201d Abe said.<\/p>\n

United States Trade Representative Robert Lighthizer said it’s not Trump’s intention \u201cat this point\u201d to raise tariffs on Japanese autos. Japan’s trade minister, Isshu Sugawara, and other top trade officials are to meet with heads of Japanese automakers Thursday morning in an apparent attempt to ease their worries.<\/p>\n

Lighthizer said he expects that Japan will pass the preliminary deal in October or November, with tariffs reductions on U.S. goods kicking in at the beginning of the year.<\/p>\n

U.S. farm groups applauded the announcement. They have been warning the Trump administration that agricultural producers could soon expect to lose market share in Japan if the United States wasn’t treated on par with top competitors from Canada, Mexico, Australia and the European Union.<\/p>\n

Japan, which imports U.S. farm products worth $14 billion, is America’s third largest market.<\/p>\n

Trump said Japan will open new markets to approximately $7 billion in U.S. agriculture products, and tariffs would \u201cnow be significantly lower or eliminated entirely\u201d on American beef, pork, wheat, cheese, corn, wine and more.<\/p>\n

\u201cThis is a huge victory for America’s farmers, ranchers and growers, and that’s very important to me,\u201d Trump said.<\/p>\n

The deal also covers commitments on $40 billion in digital trade between the countries, Trump said, \u201cwhich will greatly expand commerce across cutting edge products and services.\u201d<\/p>\n

Some observers criticized the agreement.<\/p>\n

\u201cThe deal is actually a failure,\u201d said Diane Swonk, chief economist at Grant Thornton, a tax advisory firm, \u201cbecause that means we are still threatening tariffs.\u201d<\/p>\n

Swonk said the administration’s refusal to drop that threat is an example of the uncertainty around trade policy that has caused large and small businesses to cut back on their investment spending, slowing U.S. economic growth.<\/p>\n

Myron Brilliant, executive vice-president of the U.S. Chamber of Commerce, said the deal is good for American farmers and ranchers and the digital economy, but that \u201cit’s not enough.\u201d He urged \u201cthe administration to hold fast to its commitment to achieve a comprehensive, high-standard trade agreement with Japan that addresses the full range of our trade priorities, including services, intellectual property protection and regulatory barriers to trade.\u201d<\/p>\n

After the U.S. withdrew from the TPP, Japan and the other 10 remaining members renegotiated their own deal. Japan reached free trade agreements with TPP countries and the European Union that went into effect at the start of this year. U.S. producers risked losing market share to those countries as their goods faced lower import taxes.<\/p>\n

\u201cThis gives us equal or better than those people,\u201d Lighthizer said.<\/p>\n

\u2014\u2014\u2014<\/p>\n

Associated Press writers Darlene Superville, Kevin Freking, Mari Yamaguchi and Chris Rugaber contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"

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