Japan trade deal leveling playing field for American farmers
US farmers accepted a trade deal established in essence between the U.S. and Japan that the tariff-cutting arrangement would assist them in achieving competitiveness instead of further losing ground for overseas competitors.
“We are pleased that this arrangement will put a stop to the increasingly profitable price benefit of Canadian and Australian wheat exports in the amended free trade agreement of the Trans-Pacific Partnership, which was concluded without the United States last year, a domestic wheat organization stated.
The United States was the TPP leader, but in 2017 it came out after President Donald Trump stated he favored bilateral trade agreements. He also pressed for a deal to decrease Japan’s hefty US trade deficit.
Trump and Prime Minister Shinzo Abe, who gathered in France Sunday next to the Seven Group Summit, decided to increase the remainder of the agreement in September.
While the information has not yet been announced, Japan is anticipated to lower tariffs on US agricultural products, including beef, meat, maize, and milk, to around the same level as in the current Free Trade Frameworks, such as the amended TPP.
Under the amended TPP (Trans-Pacific Partnership Comprehensive and Progressive Agreement), Japan’s 38.5% meat import tax will be reduced at 9% over 16 years.
With Japan, the leading U.S. beef import company The President of the National Cattlemen’s Beef Association, Jennifer Houston, said in a declaration that Trump had given the US sector yet another “win.”
“Japanese consumers last year bought more than $2 billion of US beef, accounting for about a quarter of the total U.S. exports of meat. Removal of the vast 38.5% rate on U.S. meat will make Japan an excellent running ground, “she said.
Japan also chose to purchase approximately 2.5 million tonnes of surplus maize in the United States, during the Abe-Trump conference, where the US-China trade war took a toll on maize farms, official accounts said.
In a declaration on Monday, an American maize producers ‘ organization said that the bilateral agreement is “beneficial” and examines prospective impacts on its producers.
“Japan is the second-largest buyer of American maize and has been a long-standing, significant trading partner to America’s maize producers,” said the declaration.
US U.S. Agriculture Secretary Sonny Perdue also welcomed this treaty, stating that the U.S. can deliver more to Japanese markets by “reducing current obstacles to our product.” “At the same moment, we will be willing to narrow holes to make our rivals succeed in a level playing field,” he said in Sunday’s press release.