The International Trade Council is pleased to announce that the United States and Japan, the world's first and third largest economies, have reached an initial trade agreement that will lower or eliminate tariffs on certain products traded between the two nations.
The deal will benefit agricultural goods and digital products, with duties on some agricultural items being removed or reduced. According to the Office of the United States Trade Representative (USTR), over 90% of US food and agricultural products entering Japan will be duty-free or receive preferential tariff access. Japan will lower tariffs on products such as fresh and frozen beef and pork and will immediately eliminate them for certain nuts, fruits, and vegetables.
In return, the US will remove or lower duties on approximately $40 million of agricultural imports from Japan, including cut flowers, green tea, and soy sauce. The trade agreement will also provide preferential treatment for certain digital products, prohibiting duties on digital items like videos, music, and e-books, and ensuring the free transfer of data across borders.
Japanese Prime Minister Shinzo Abe has expressed optimism about the deal's positive impact on the global economy. The US looks forward to negotiating a comprehensive agreement with Japan in the future, according to the USTR statement.
Regarding the previously threatened car tariffs of up to 25% by the US, Prime Minister Abe confirmed receiving assurances that no such tariffs would be imposed on Japanese cars.
The International Trade Council welcomes this agreement as a step towards fostering stronger economic ties between the US and Japan, and promoting a stable global trading environment.