US signs limited pact with Japan on ag
WASHINGTON — The United States and Japan signed a limited trade agreement Monday, a deal that would win back benefits American farmers lost when President Donald Trump pulled out of a broader AsiaPacific pact his first week in office.
U.S. farmers have been operating at a disadvantage in Japan since Trump withdrew from the Trans-Pacific Partnership agreement, which had been negotiated by the Obama administration. The other 11 Pacific Rim countries, including big farm producers such as New Zealand and Canada, went ahead without the United States and were enjoying preferential treatment in Japan.
“This is a huge victory for America’s farmers, ranchers and growers. And that’s very important to me,” Trump said in a signing ceremony at the White House.
But Tami Overby, senior director on Asia and trade issues at the McLarty Associates consultancy, said America’s competitors in agriculture got a two-year head start and used it to sign multiyear contracts in Japan to sell farm products. “We’re going to have to thrash back and fight for lost market share,” she said.
The deal comes at a time when other parts of the Trump administration’s trade agenda have stalled. Congress has yet to approve a North American trade deal Trump’s trade team negotiated last year with Canada and Mexico.
While rewarding American farmers, the new U.S.-Japan mini-deal does not resolve differences over trade in autos. Trump has said the two countries continue to work on a more comprehensive agreement.
Trump has threatened to impose import taxes on foreign autos.
The limited trade pact also includes market-opening commitments on $40 billion worth of digital trade between the two countries. .