A new USA-Japan trade agreement

Following a bilateral meeting at the G7 summit held in Biarritz, France, Japan and the United States announced a new trade agreement likely to be signed next month in New York (USA) .

 

 

 

Prime Minister Shinzo Abe and US President Donald Trump announced Sunday that they have agreed on the terms of a new trade agreement. The agreement is expected to be signed in September in New York (USA) on the occasion of the UN General Assembly.

 

 

 

This new trade agreement will reduce Japanese tariffs on beef, pork and other US agricultural products.

 

 

 

It seems that Japan has made concessions on the agricultural sector and that the United States has not given in to the automobile sector. The US trade deficit with Japan was nearly 68 billion USD in 2018, of which nearly two-thirds came from car exports. The 2.5% tariff on Japanese cars imported into the United States will be discussed separately.

 

 

 

According to the Japanese media, it is the threat of punitive tariffs on Japanese auto exports that has prompted the government to accept bilateral trade negotiations with the United States since last September.