Japan’s Parliament on Wednesday, Dec. 4, approved a US-Japan trade deal that is taking effect at the beginning of 2020 and bringing good news for American farmers.
The deal cutting tariffs between the countries was signed by President Donald Trump and Japanese Prime Minister Shinzo Abe on Sept. 25. It cleared Japan’s upper house on Wednesday after clearing the more powerful lower house earlier.
The deal will pave the way for cheaper American beef and other agricultural products in Japan.
The president called the US-Japan trade deal the “first stage of a phenomenal new trade agreement” and described it as “outlining the significant steps we’re taking toward a fair and reciprocal trade agreement.”
President Trump said on Sept. 25. “This is a big chunk, but in the fairly near future we’re going to be having a lot more comprehensive deals signed with Japan,”
Japan, which imports U.S. farm products worth $14 billion, is America’s third-largest market. The United States and Japan have agreed to continue talks on trade, and the auto tariffs are likely to come up in the talks.
Japan is one of the largest export markets and trading partners for the United States. In 2018, U.S.-Japan trade in goods and services surpassed $300 billion, U.S. goods and services exports reached a total of $121.1 billion, increasing 6 percent from 2017, according to Export.gov.
President Trump withdrew from the Trans-Pacific Partnership agreement, negotiated by the Obama administration. But the Trump administration quickly negotiated bilateral trade deals with a number of countries, such as UMSCA deal with Canada and Mexico, which has been held up by the House Democrats.