After the Economic Partnership Agreement between the EU and Japan entered into force earlier in 2019, now it is the US and Japan which have reached an initial agreement to eliminate or lower tariffs on certain products traded between the two countries.
The US has been seeking a bilateral agreement with Japan since it pulled out of the Trans-Pacific Partnership in Mr. Trump’s early days in the presidential office.
The deal will aim at reducing or eliminating Japan’s import tariffs on products such as fresh and frozen beef and pork, almonds, walnuts, cranberries, sweet corn or grain sorghum. The deal should provide staged tariff elimination for products such as cheeses, processed pork, poultry, wine or tomato paste.
Under the deal, over 90% of US agri-products exported into Japan will be either duty free or receive preferential tariff access.
In return, Japan will benefit from lower import duties in the US on products such as turbines, machine tools, cut flowers, green tea and soya sauce.