[Tokyo 26th Reuters]-Prime Minister Shinzo Abe and US President Trump agreed to sign a trade agreement at a meeting held in New York on the 25th and signed the agreement. While Japan opened up the agricultural market at the level of the Trans-Pacific Partnership Agreement (TPP), talks about cars, which are the biggest factor in the US trade deficit with Japan, were carried over.
A representative of the Light Heiser US Trade Representative (USTR) explained that the agreement does not include cars because the Japanese side hopes to continue the discussion. He said that negotiations on automobiles are expected to start in April next year.
<Consultation will resume in April next year>
Since the car was a continuous discussion, the US side expressed this as a “partial” or “first” agreement. On the other hand, the Japanese side stressed that Prime Minister Abe has reached the final agreement.
This time, for automobiles and auto parts, the US concession table that defines the method and schedule for the elimination and reduction of tariffs on individual items clearly states “tariff elimination through further negotiations”. Foreign Minister Motegi said, “The specific timing of abolition will be decided in future negotiations,” says, “Automobiles are in a period of major change such as electrification, and it is important to identify and discuss what parts are important.” Pointed out.
Tariffs on Japanese cars will continue to be a focus, but this joint statement will include a statement that "does not act against the spirit of the agreement or joint statement while the agreement is being implemented in good faith." It was.
In the joint document last September, it was confirmed that no additional tariffs will be imposed during the negotiation period, and the Japanese side has now confirmed that no additional tariffs will be imposed not only during the negotiation period but also during the validity of the trade agreement. I wanted.
Regarding the interpretation of the new joint statement, Foreign Minister Motegi said at the conference, “I think it will be implemented in good faith if there is no response to the agreement, but no additional tariffs will be imposed during that time. And Prime Minister Abe has confirmed with President Trump. " At the press conference of Prime Minister Abe, he stressed that the content of the joint statement was “I clearly confirmed to President Trump that the intention was not to impose additional tariffs, and the President also acknowledged it”.
The Japanese side was asking the US side to make a commitment not to trigger tariffs on Japanese cars for security reasons under Article 232 of the US Trade Expansion Act. In this regard, Reichheiser USTR representative said that tariffs on Japan under Article 232 were not intended by the United States, and that both countries will tackle the issue in good faith.
<Reduce tariffs equivalent to TPP, such as rice beef>
According to President Trump, Japan will open the market for $ 7 billion worth of US agricultural products, and tariffs on US beef, pork, wheat, cheese, corn and wine will be significantly reduced or eliminated. According to the USTR, about 90% of rice agricultural products exported to Japan are subject to tax exemption or preferential treatment.
According to Japanese government data, beef, pork, wheat, dairy products, and wine are expected to have tariff elimination or reduction equivalent to TPP. On the other hand, the tariff-free quota was set to zero for rice. There is no quota for dairy products such as skimmed milk powder or butter.
Beef agreed that the standard quantity to activate safeguards (urgent import measures) should increase to 242,000 tons in 2020 if imports from the US increase rapidly. In the TPP participating countries, the triggering standard is 600,000 tons, and Japan intends to re-discuss safeguard standard quantities with TPP participating countries so that low-priced imported beef will not increase rapidly.
In addition, taxation of software downloads is prohibited in the digital field. In addition, the government is prohibited from requesting the disclosure of source code from digital service providers. Prime Minister Abe pointed out that "Japan and the United States are important decisions to lead global rule-making in the digital field."
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