Trump Notifies Congress of Japanese Free Trade Agreement

(WASHINGTON, DC) In a notice to Congress this week, President Trump said he intends to enter into a trade agreement with Japan in the coming weeks. The notification is required by law under the Presidential Trade Promotion Authority (TPA). The administration may negotiate the deal, but must rely on Congressional guidance throughout the process – specifically by the House Ways and Means Committee and the Senate Finance Committee. Trump and Japanese Prime Minister Shinzo Abe are considering signing a deal in late September when they attend the U.N. General Assembly in New York. The agreement in principle with Japan is expected to bring tariffs on U.S. pork and beef in line with competitors’ rates, but the agreement still must be finalized. Top U.S. agricultural exports to Japan currently include beef, corn, pork, soybeans, and wheat. Japan represents the U.S.’s third-largest export market (behind Canada and Mexico) for feed, feed ingredients, and pet food products, at a value of $986 million in 2018. By eliminating existing barriers and leveling the playing field, a U.S.-Japan trade agreement will provide America’s animal food and ingredient manufacturers with greater access to this marketplace. Senate Finance Committee Chairman Chuck Grassley (IA-R) praised the bilateral agreement. He said it probably makes up for about 90 percent of what was lost by not being in the Trans-Pacific Partnership (TPP). Though a fairly good agreement, Grassley expressed frustration that the exclusion of U.S. rice exports to Japan is an example of the agreement’s shortcomings.