Current Trade Agreements With Japan
As part of the government`s broader trade agenda, President Trump has long been critical of the trade imbalance between the United States and Japan, the world`s largest and third-largest economies, respectively. In order to reduce the U.S. trade deficit of $56.7 billion3, President Trump and Japanese Prime Minister Shinzo Abe jointly announced their intention to begin negotiations for a U.S.-Japan trade deal in 20184.4 These negotiations began in April 2019.5 As described in EY Global Tax Alert, USTR grants Lists 1:2 and 3 new exclusions for products originating in China; The United States and Japan agree on merchandise trade and digital trade, President Trump and Prime Minister Abe announced the trade agreement at the United Nations General Assembly in New York on September 25, 2019.6 9. www.whitehouse.gov/briefings-statements/president-donald-j-trump-secured-tremendous-victory-american-farmers-businesses-new-japan-trade-agreements/. 2. ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/ambassador-lighthizer-lauds-japan #. 6. EY Global Tax Alert, USTR, grants new exclusions for Lists 1, 2 and 3 for products originating in China; The United States and Japan agree on merchandise trade and digital trade on September 27, 2019. On December 26, 2019, the President of the United States (United States), Donald Trump, signed a proclamation that implemented two separate trade agreements with Japan (together the agreements).1 The proclamation took place about three weeks after the approval by Japan`s bicameral parliament, the national parliament, of the two agreements in early December. The U.S.-Japan Trade Agreement (Trade Agreement) will eliminate or reduce tariffs on agricultural and industrial goods and set preferential quotas for U.S.-specific products. The U.S.-Japan Digital Trade Agreement is a separate agreement between the two countries that sets out guidelines for priority areas of digital trade.
The agreements entered into force on January 1, 2020 and will serve as the basis for further negotiations for a broader free trade agreement between the United States and Japan2. On 19 November 2019, the lower house of the Chamber of Deputies, the House of Representatives, voted on both agreements. On 4 December 2019, Parliament formally approved the agreements after they were adopted by the House of Lords, the Council`s House of Lords. Since congressional approval in the United States is not required, President Trump signed the agreements himself on December 26, 2019. Both agreements entered into force on 1 January 2020. 10. U.S.-Japan Trade Agreement, Annex I: Japan`s Tariffs and Customs Provisions, I-B-5-1; ustr.gov/sites/default/files/files/agreements/japan/Annex_I_Tariffs_and_Tariff-Related_Provisions_of_Japan.pdf. . . .