US and Japan Trade Agreement
Now it is officially: the United States and Japan have signed a trade agreement, about which these countries have been in lengthy negotiations.
The US President is pleased with the signing of the agreement, as improving business relations between the largest and third largest national economies in the world is essential for the well-being of both states, the White House reports. At the end of September, on the sidelines of the UN General Assembly in New York, they announced their agreement to sign an agreement for industries such as agriculture and the digital economy. At that time, Trump spoke of a “phenomenal deal,” which, in the first place, is a “big win” for American farmers.
Also the signed agreement is designed to promote the growth of mutual trade. Under the terms of the agreement, the United States will be able to export more agricultural products, such as:
In the field of the digital economy, the parties agreed that they would not increase customs duties on products such as:
- computer games,
- music recordings.
Problems with the automotive sector
However, the agreements concluded after six months of negotiations do not regulate the totality of bilateral business relations between these countries. An agreement on the automotive sector has not yet been reached. The US government threatens Japan with fines on car imports. Japanese automakers such as Toyota and Honda are among the largest enterprises in the country’s export-oriented economy.
Japan as a US trade partner
With a turnover of $ 218 billion, Japan is the fourth largest trading partner for the United States. In 2018, the trade deficit amounted to seventy billion dollars. That year, the United States imported goods worth a total of one hundred forty-two billion dollars from Japan. Among them, in the first place, cars, machine tools and electrical equipment.
For its part, Japan purchased goods worth a total of seventy-five billion dollars from the United States. At the same time, American agricultural products account for thirteen billion. Thus, in 2018, Japan became the third largest export market for American agricultural products.