2. ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/ambassador-lighthizer-lauds-japan #. The U.S.-Japan trade deal is a breakthrough. This is the president`s first trade deal with a major trading partner that, given that its limited scope does not require congressional approval, could soon take effect. Companies dealing with Japan and U.S. trade are encouraged to review the text of the agreements and understand the potential benefits. To that end, companies may consider emergency measures: negotiators have tried to circumvent this “essentially all” requirement by making the deal a first step toward a possible free trade agreement, but skeptics doubt that President Trump is willing to drop tariffs on things like cars, which would be indispensable as part of a broader agreement. Instead, limited agreements like this could become the norm under his government. CFR`s Jennifer Hillman writes, “For my part, I`m not going to hold my breath and wait for a bigger deal.” The U.S.-Japan Trade Agreement (USJTA) entered into effect on January 1, 2020. In this agreement, Japan committed to granting the United States significant market access by removing most tariffs, discouraging significant tariff reductions, or allowing a certain amount of imports at a lower tariff. Once the USJTA is fully implemented, nearly 90% of U.S.
agricultural products and products imported into Japan will be duty-free or have preferential access to tariffs. The full text of the agreement and fact sheets are available on the USTR Trade Representative (USTR) website. This agreement provides for the limited use of safeguard measures allowing for a temporary increase in customs duties when imports exceed a predetermined trigger level. Japan will have protective measures for beef, pork, whey, oranges and racehorses. The tables below provide updated information on the trigger values of safeguard measures and trade volumes applicable for the current and past financial year in Japan (JFY). Japan is the United States` fourth-largest goods trading partner, and the two countries concluded $217.6 billion in bilateral merchandise trade in 2018. In addition, U.S. agricultural exports to Japan totaled $13 billion in 2018, making Japan the third-largest agricultural export market and undersizing Japan`s importance to U.S. farmers. Nearly three years after his presidency, Trump had secured just one other trade deal that went into effect — a minor renegotiation of the U.S.-Korea free trade agreement. Its negotiators have also reached an agreement on a new North American Free Trade Agreement (NAFTA), which has yet to be passed by both the Senate and the democratically controlled House of Representatives.