U.S. agriculture is a big winner in the newly signed trade agreement with Japan. Gary Crawford reports from Washington.
The U.S. and Japan have signed a trade agreement. President Donald Trump says the two sides have agreed to the first phase of the deal. The agreement is not finished enough to be signed, but the two sides signed a statement explaining the agreement is to be signed.
Agriculture Secretary Sonny Perdue called the agreement a “big win” for agriculture, as the deal increases market access for farmers and ranchers to Japan. Once implemented, the agreement grants the U.S. the same level of agricultural tariffs for other nations included in the Comprehensive Agreement for Trans-Pacific Partnership.
USDA says Japan has committed to provide substantial market access to U.S. food and agricultural products by eliminating tariffs, enacting meaningful tariff reductions, or allowing a specific quantity of imports at a low duty.
The agreement is expected to be approved by the Japanese Parliament later this fall. The effective date could be January 1, 2020. Japan is the third global market for U.S. agricultural exports with nearly $13 billion in exports in 2018.