The USDA announced over the weekend that the United States and Japan have agreed in principle to lower Japanese tariffs on U.S. agricultural goods, in a deal that is expected to add $7 Billion in exports. Japan, the United States' 3rd largest trading partner, already imports approximately $14 Billion in agricultural products.
The deal is expected to significantly increase grain and beef imports into Japan. The country purchased $2 billion in beef imports, though with a tariff of more than 35%. Removing that tariff should help greatly, as was reported in an article by Agri-Pulse.
“Japan is a significant market for United States agriculture exports, making today a good day for American agriculture. By removing existing barriers for our products, we will be able to sell more to the Japanese markets. At the same time we will able to close gaps to better allow us to compete on a level playing field with our competitors. I thank President Trump and Ambassador Lighthizer for their constant support of America’s farmers and ranchers and their hard work negotiating better trade deals around the globe.”
American Farm Bureau President Zippy Duvall also weighed in on the deal and what is means for American farmers and ranchers.
“America’s farmers and ranchers are pleased to hear that the U.S. and Japan may be close to a trade deal that includes agriculture. This is much-needed good news on the agricultural trade front," Duvall said. “Top U.S. agricultural exports to Japan currently include beef, corn, pork, soybeans and wheat. We appreciate the Administration’s work to secure greater access for these farm goods and others. We look forward to reviewing the details of the agreement.”
More details will be emerging as the deal is finalized.