Bilateral Trade Relations Between Japan and United States: Trade Deal Keeps the Balance
Aims of the Bilateral Trade Relations Between United States and Japan
The current bilateral trade relations between Japan and the United States will offer a decrease in Japanese tariffs; the reduction will be over two billion dollars with the value of United States beef and pork. The bilateral trade relations allowed direct and transparent access that is provided to the eleven Trans-Pacific Partnership trade relations countries, stated in the agreement of the bilateral trade relations.
The current United States President Donald Trump supervised over a White House event, the signing ceremony of the final text for the bilateral trade relations. This event put United States agricultural and food producers in a weak position against the Japanese trading market to other contenders from Canada, New Zealand, and Australia. The United States and Japan bilateral trade pact primarily focus to equalize the market by slashing Japanese tariffs on various commodities.
What Products Will Be Helped and What Products Will Be Harmed?
The United States office of Trade Representative stated that the bilateral trade relations would instantly purge Japan’s tariffs on United States agricultural products and food; this would be about 1.3 billion dollars per year. The myriad of products that will be affected in the market by the Japanese and United States bilateral trade pact are: almonds, blueberries, cranberries, walnuts, sweet corn, lactose, milk albumin, grain sorghum, food supplements, broccoli and prunes.
There are claims that there is an extra three billion dollars with the value of commodities that would be beneficial from the eradication of staged tariffs. The products that will benefit from the Japanese and United States bilateral trade relations are: processed pork, beef offal, frozen poultry, wine, frozen potatoes, oranges, fresh cherries, cheese and whey, ethanol, egg products and tomato paste.
The bilateral trade relation between Japan and United States will revive a country-specific tariff-free allocation of United States wheat that will be able to flourish to 150,000 metric tons in the span of six years. Japan will also decrease its mark-up, when it comes to wheat that is imported from the United States by 45%, as per the agreement in the bilateral deal.
Barley will be allowed access to Japan partially revived to the Trans-Pacific Partnership (TPP). Japan will also launch new country-specific allocation for United States un-roasted malt. However the deal does not offer the United States any access to a Trans-Pacific Partnership- wide quota that flourishes to sixty-five thousand over the span of nine years.