Trade Talks With Japan Likely to Disappoint Agriculture

(ARLINGTON, VA) As concerns over the ongoing trade dispute with China continue to grow, there’s a growing focus on other opportunities for trade. During a breakout session at the recent 95th Annual USDA Agricultural Outlook Forum, Jeffrey Schott, a Senior Fellow at the Peterson Institute for International Economics explained the ongoing talks with Japan. Schott says the United States wants to “rebalance” merchandise trade, particularly autos and parts, primarily by reducing US imports. The Trump Administration is also looking for new rules on digital trade, state-owned enterprises, and currency practices building on precedents established in the U.S.-Mexico-Canada Agreement (USMCA). Trump also wants to level the playing field for U.S. exporters of beef, pork, and grains. With the U.S. pulling out of the Trans-Pacific Partnership (TPP), Schott says agriculture is likely to be disappointed in any agreement that is made. Since the remaining members of the TPP agreement are already finding trade easier with Japan, U.S. ag exporters will face more discrimination through tariffs and trade barriers in the coming years.