U.S. – Japan Trade Agreement Reopens Door for Agriculture

WASHINGTON, DC – President Trump proclaimed victory on Monday for both the United States and Japan, with the signing of the U.S.-Japan Trade Agreement and the U.S.-Japan Digital Trade Agreement. In a White House ceremony, Trump said these deals are a game-changer for farmers and our ranchers, providing them with significantly enhanced access to a critical foreign market. The trade agreement, which is scheduled to take effect January 1st, would give most U.S. agricultural products the same tariff treatment afforded to members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – the successor to the Trans-Pacific Partnership (TPP), from which Trump withdrew from in 2017. Unlike the recently completed free trade agreement with Mexico and Canada (USMCA) that requires Congressional approval, this agreement will not. The pact, presented for review to the Japanese Diet last week, was crafted as a resolution to a Section 301 steel and aluminum national security trade proceeding brought by the United States against Japan. American farmers and ranchers will see reduced tariffs on fresh and frozen beef and pork; elimination of tariffs on tree nuts and grain sorghum, and; provide staged tariff relief for cheese, poultry, oranges, and ethanol. Work on a broader Stage 2 agreement is expected to begin in April. The negotiations are expected to include additional agricultural tariff line modifications, as well as addressing sanitary and phytosanitary barriers to trade. Any additional agreement, however, will require notification, consultation, and ratification by Congress.