The Strategist

US, Japan announce initial agreement on custom duties

09/16/2019 - 11:13

Donald Trump announced final signing of the agreement in the coming weeks.

Chairman of the Joint Chiefs of Staff via flickr
Chairman of the Joint Chiefs of Staff via flickr
The White House has published a statement by US President Donald Trump addressed to the US Congress. The statement reads that the negotiation process is nearing successful completion.

"I am pleased to inform that my administration has reached a preliminary trade agreement on tariff barriers with Japan, and I intend to conclude an agreement in the coming weeks," the statement said.

Trump noted that he was notifying Congress of his intention to conclude an agreement under the current legislation. In addition, the conclusion of an executive agreement that does not require approval by the Senate is being considered.

"In addition, I intend to enter into an executive agreement with Japan regarding digital commerce," Trump said.

President’s message states that his administration is looking forward to further cooperation with Congress in negotiating with Japan to achieve a comprehensive trade agreement.

According to the Nikkei, the bilateral agreement implies that Tokyo will reduce or completely abolish duties on American beef and wine. In particular, the tariff for importing wine from the United States, amounting to 15% per 1 liter, can be canceled within five to seven years after the start of the agreement. This will significantly increase competitiveness of suppliers in the Japanese market. Now it is dominated by European and Latin American wines. Fees for American beef can be lowered from the current 33.5% to 9% by 2033. 


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