Us Japan Trade Agreement 2020
In particular, the agreement does not address the lingering issue of the possibility of imposing security tariffs on Japanese cars and spare parts on the United States. Japan is the largest supplier of cars to the United States, and cars are the largest source of U.S. trade deficit with Japan. During the negotiations, Japanese negotiators sought to ensure that the Trump administration would not impose additional national security rights on Japanese cars and spare parts. Members of Japan`s national regime criticized the agreement for not receiving a written guarantee on the agreement and because U.S. tariffs of 2.5% on cars and 25% on HGVs had not been eliminated. Nevertheless, Japanese officials said that no additional U.S. tariffs will be imposed on Japanese cars “as long as the agreement is faithfully enforced,” and USTR Robert Lighthizer said after the signing ceremony that “at this point, we certainly have no intention of the president to do anything about cars, out of 232s, on Japan.” Kaneko, Sieg and Polansek (2019) said the U.S. absence from the CPTPP has penalized U.S.
beef exports in 2019. In the first ten months following the implementation of the EPA, EU meat exports to Japan increased by 12% over the previous year, while exports of frozen beef more than tripled (European Commission, 2020). For CPTPP countries, imports of Japanese beef from Australia, Canada, New Zealand and Mexico, competitors of the United States, increased in January 2019 to 33,000 tonnes, an increase of 56% over the previous year (Cislo, 2019). While beef imports from the United States increased by 4% in January 2019 compared to the previous year, U.S. beef exports to Japan declined by 10% in December, both in volume and value (U.S. Meat Export Federation, 2019b). These correlated events do not prove that the U.S. withdrawal from the TPP, combined with Japan`s free trade agreements with other major markets, has led to a decline in U.S. beef exports.
However, these changes were probably important factors in this decline. President Trump, as part of the government`s broader trade agenda, has long criticized the trade imbalance between the United States and Japan, the world`s largest and third-largest economies, respectively. To reduce the U.S. trade deficit by $56.7 billion, President Trump and Japanese Prime Minister Shinzo Abe have jointly announced their intention to open negotiations for a U.S.-Japan trade deal in 2018. The United States and Japan agree on merchandise trade and digital trade, President Trump and Prime Minister Abe announced the trade agreement on September 25, 2019 at the United Nations General Assembly in New York.6 U.S. Bureau of Labor Statistics.