The U.S.-Japan Trade Agreement (USJTA) came into force on January 1, 2020. In that agreement, Japan committed to grant the United States significant market access by phasing in most tariffs, implementing significant tariff reductions or allowing a certain volume of imports at a lower price. Once the USJTA is fully implemented, nearly 90% of U.S. food and agricultural products imported into Japan will be duty-free or preferential tariff access. 9. www.whitehouse.gov/briefings-statements/president-donald-j-trump-secured-tremendous-victory-american-farmers-businesses-new-japan-trade-agreements/. DLA Piper has experience in customs legislation and trade agreements. If you have any questions or ask for additional advice, please contact us. Japan has requested ratification by submitting the agreements to its bicameral legislation, the National Parliament. On November 19, 2019, the lower house of Parliament, the House of Representatives, voted on both agreements. On 4 December 2019, the Landtag approved the agreements after adoption by the Council, the House of Lords of the Landtag. In the absence of congressional approval in the United States, President Trump signed the agreements himself on December 26, 2019.
Both agreements came into force on January 1, 2020. President Trump, as part of the government`s broader trade agenda, has long criticized the trade imbalance between the United States and Japan, the world`s largest and third-largest economies, respectively. To reduce the U.S. trade deficit by $56.7 billion, President Trump and Japanese Prime Minister Shinzo Abe have jointly announced their intention to open negotiations for a U.S.-Japan trade deal in 2018. The United States and Japan agree on merchandise trade and digital trade, president Trump and Prime Minister Abe announced the trade deal on September 25, 2019 at the United Nations General Assembly in New York.6 Within four months of its implementation, President Trump and Prime Minister Abe will shift their efforts to a broader trade agreement. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. 12. General Note 4 (a) (k) in Schedule II of the trade agreement. ustr.gov/sites/default/files/files/agreements/japan/Annex_II_Tariffs_and_Tariff-Related_Provisions_of_the_United_States.pdf. On October 7, 2019, USTR Robert Lighthizer and Japan`s Ambassador to the United States Shinsuke J. Sugiyama signed the U.S.-Japan trade agreement and the U.S.-Japan Digital Trade Agreement. Following national procedures, both agreements came into force on 1 January 2020.
As announced in the joint statement of the United States and Japan of September 25, 2019, the United States and Japan intend to conclude consultations within four months of the U.S.-Japan trade agreement coming into force and then to open negotiations on tariffs and other trade restrictions, trade barriers and investment, and other issues, to promote mutually beneficial, fair and reciprocal trade for both parties.