UNITED STATES, WASHINGTON (OBSERVATORY) — The United States and Japan have agreed on the basic elements of a bargain. US President Donald Trump and Japanese Prime Minister Shinzo Abe hope to sign an agreement in New York next month, according to Reuters.
U.S. sales representative Robert Lighthizer said the deal covers areas such as agriculture, industry, and digital commerce. Car taxes will remain unchanged.
Trump said Japan agreed to buy surplus corn that burdens US farmers in a trade dispute between Washington and Beijing.
“This is a very big deal, and we have reached an agreement in principle. It’s billions and billions of dollars. It’s amazing for farmers,” Trump told reporters at the G7 summit in France.
The Japanese leader expressed the hope that the work on the deal will be completed by the time of the UN General Assembly next month.
“We still have to do some work at the working level, namely, to finalize the wording of the trade agreement, as well as the content of the agreement itself,” he said. “But we would like to make sure that our teams … will accelerate the remaining work for us to achieve this the goal is to sign an agreement on the sidelines of the UN General Assembly at the end of September. ”
Lighthizer noted that Japan imports US agricultural products worth about $ 14 billion, and said that the agreement will open markets for such goods worth more than $ 7 billion. “This will lead to a significant reduction in tariffs and non-tariff barriers in all directions,” he added.
Exports from Japan to the USA in July grew by 8.4% in annual terms. Export growth was recorded for the 10th consecutive month.
Meanwhile, imports from the United States increased by 3.5%. The trade surplus of Japan with the United States in July grew by 15.6% in annual terms to 579.4 billion yen.
Trump has repeatedly criticized Japan and other trading partners for trade imbalances.
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