A trade agreement is signed between the U.S. and Japan, at the White House, on Monday.
The deal was signed between the U.S. Trade Representative Robert Lighthizer and Shinsuke J. Sugiyama, the Japanese Ambassador the U.S.
Two limited trade agreements were signed by the U.S. with Japan. This will bring down tariffs on American agricultural exports worth $7.2 billion.
During the UN General Assembly held in September, the deal was struck between the U.S. President Donald Trump and Japan’s PM Shinzo Abe.
The first deal has done away with tariffs on grains, cheese, nuts and berries worth around $4.3 billion. Beef and pork products tariffs worth $2.9 billion will come down. Tariffs will, however, continue on $1.7 billion agricultural products.
The second deal will bring in reduced tariffs on digital products between the U.S. and China, worth about $40 billion.
However, auto tariffs have not been addressed and it remains a sticking point that has been evaded during the negotiations. Auto and auto parts, a commercially strategic issue has not been touched during the bilateral trade talks. This may be addressed during a later phase when talks will continue.
Semiconductor manufacturing equipment and liquefied propane gas have also been left out.
President Trump has stated during the signing ceremony that his administration works without ceasing to elevate American workers with a level playing field.
The trade deal will bring in a major relief to the U.S. farmers, as they will regain their market share in Japan, which was hindered by the tariffs.
Wine, beef and pork exports will increase, once they gain entry into Japan without tariffs.
The deal has been struck between the U.S. and Japan just days ahead of high-level talks with China. Key issues such as intellectual property theft and technology transfer will be addressed during the negotiations to end the year-long trade war between the U.S. and China.