Us Japan Trade Agreement Negotiations
The Trump administration`s bilateral negotiations with Japan are an alternative to the U.S.-Japan trade deal negotiated under the TPP. In light of the Trump administration`s decision to strike a limited first-stage deal, the main difference with the TPP (and TPP-11) is that the TPP covered a much wider range of commitments. For example, the USJTA requires countries to reduce or eliminate tariffs on a small portion of each country`s overall tariff headings, while the TPP requires both countries to remove tariffs on all but a limited number of agricultural products.99 In addition, this Phase 1 agreement with Japan covers a non-tariff theme, digital trade, while the TPP covers issues such as rules on technical barriers to trade. sanitary and phytosanitary measures, public enterprises, labour and environmental standards, protection of investments and intellectual property rights and market access for services, among others. As already said, it remains to be seen whether and in what form the government will engage in such commitments in future negotiations with Japan.100 companies with Japan and US trade will be encouraged to re-examine the text of the agreements and understand the potential benefits. To this end, companies may consider emergency measures: 10th U.S.-Japan Trade Agreement, Annex I: Japan`s Tariffs and Customs Provisions, I-B-5-1; ustr.gov/sites/default/files/files/agreements/japan/Annex_I_Tariffs_and_Tariff-Related_Provisions_of_Japan.pdf. 9. www.whitehouse.gov/briefings-statements/president-donald-j-trump-secured-tremendous-victory-american-farmers-businesses-new-japan-trade-agreements/. It should be noted that neither agreement contains a formal dispute settlement mechanism to enforce commitments, while one criticizes the other party`s implementation35 The Trump administration refers to Article 6 of the USJTA, which levies a 60-day consultation process to resolve issues related to the “transaction or interpretation” of the agreement as a means of settling tariff-related disputes. and quota commitments. 36 A future comprehensive agreement could include a formal dispute settlement mechanism. However, the impact of these agreements on the original agreements is unclear.
USTR, “FACTSHEET on U.S.-Japan Digital Trade Agreement,” October 2019, ustr.gov/about-us/policy-offices/press-office/fact-sheets/2019/october/fact-sheet-us-japan-digital-trade-agreement. Under the USJTA, Japan has accelerated and adapted its tariff reduction plan, so that imports from the United States concerned gain the same market access as imports from CPTPP countries (Williams, Cimino-Isaacs and Regmi, 2019) (see Table 1). For example, the USJTA reduces Japanese tariffs on U.S. imports of chilled and frozen beef to 26.6% in 2019 and 9% in 2033, while CPTPP lowers Japanese tariffs on imports of chilled and frozen beef from member states to 27.5% in 2018, 26.6% in 2019 and 9% in 2033 (Williams, Cimino-Isaacs and Regmi, 2019). Due to delays in the USJTA negotiations, Japan granted preferential market access treatment under the CPTPP in 2018 and 2019 to major US competitors in the Japanese market, including Australia, Canada and New Zealand. Under the USJTA, Japan agreed to remove or reduce tariffs for some United States. . . .