U.S. and Japan Trade Talks Continue
President Trump and Prime Minister Abe continue to meet in negotiation for a possible trade agreement between the United States and Japan. The key content discussed revolves around automotive parts and the U.S. agriculture market. For example, according to FAS.org “Opening Japan’s highly protected agriculture market and reaching parity with exporters from Japan’s FTA partners is a major priority for U.S. industry.” The United States and Japan originally entered trade talks in October 2018 which has already resulted in new American jobs and Japanese investment into the country.
Since the Administration’s withdraw from the TTP (Trans- Pacific Partnership), “the 11 other members (including Japan) went ahead without the U.S. to forge a successor. That pact, which entered into force Dec. 30, and another that Abe struck in 2018 with the EU, have left U.S. farmers at a disadvantage: They risk losing their 22 percent share of Japan’s food-import market to rivals with lower tariffs. Abe dragged his heels on bilateral talks in the hope that the U.S. would rejoin the TPP rather than press for a better deal,” in accordance with Fortune.com.
The other aspect in a possible U.S. – Japan agreement is the importance of exporting U.S. automobiles and parts, “which make up the biggest portion of the U.S. trade deficit. The U.S. side wants a deal that would help sell American cars in Japan, while Japan wants to avoid damaging tariffs on autos and auto parts that would dent its already lackluster economy. The two sides will also hold discussions on digital trade, but other types of services are off the table, at least for now,” also in accordance with Fortune.com