US President Donald Trump and Japan’s Prime Minister Shinzo Abe signed a trade-enhancement agreement on the sidelines of United Nations General Assembly on Wednesday. The deal will lower tax levied on agricultural goods in Japan and industrial tariffs in the US.
The accord potentially marks the beginning of a broader trade agreement between Japan and the US. The deal would open market of about $7 billion for the US agricultural sector, Trump said. Under the agreement, Japan will reduce tariffs on approximately $2.9 billion of beef and pork, and remove the tax on $1.3 billion of goods, including sweet corn, almonds, as well as certain fruits and nuts. Wines, cheeses, whey, ethanol, and other items will have tax removed in stages.
In return, the US will cut or lift tariffs on some Japanese industrial goods, including specific machine tools, bicycles, bike parts, fasteners, steam turbines, and musical instruments. The US will also lower tariffs on Japanese green tea, chewing gum, soy sauce as well as certain plants and flowers, according to the US Trade Representative.
Both countries also set terms of digital trade. These include tariffs on digital products transmitted electronically such as e-books, software, games, videos, and music. Through this deal, both Tokyo and Washington aim at ensuring barrier-free cross-border data transfers.
