Japanese American Trade Agreement

Negotiators have tried to circumvent this requirement “for the most part” by presenting the deal as a first step toward a possible free trade deal, but skeptics doubt that President Trump will agree to drop tariffs on things like cars, which would be indispensable as part of a broader deal. Instead, limited agreements like this could become the norm under his government. CFR`s Jennifer Hillman writes, “For my part, I`m not going to hold my breath and wait for a bigger deal.” Products wholly obtained or manufactured in the United States are generally eligible for preferential tariff treatment under the USJTA. Products using materials from other countries may also be considered depending on the type of product and the classification of tariff codes. In this agreement, Japan committed to granting the United States significant market access by removing most tariffs, discouraging significant tariff reductions, or allowing a certain amount of imports at a lower tariff. Once the USJTA is fully implemented, nearly 90% of U.S. agricultural products and products imported into Japan will be duty-free or have preferential access to tariffs. The full text of the agreement and fact sheets are available on the USTR Trade Representative (USTR) website. Japan has sought ratification by blaming the agreements on its bicameral parliament, the national parliament. On 19 November 2019, the lower house of the Chamber of Deputies, the House of Representatives, voted on both agreements. On 4 December 2019, Parliament formally approved the agreements after they were adopted by the House of Lords, the Council`s House of Lords.