What Was The Effect Of America`s Withdrawal From A 30-Year Trade Agreement With Japan

U.S. President Donald Trump signed a proclamation on December 26, 2019, in which he implemented two separate trade agreements with Japan (together the agreements) 1. The U.S.-Japan trade agreement (trade agreement) will abolish or reduce tariffs on agricultural and industrial products and set preferential quotas for U.S. products. The Digital Trade Agreement between the United States and Japan is a separate agreement between the two countries, which will provide guidance for priority areas of digital trade. The agreements came into force on January 1, 2020 and are expected to serve as the basis for further negotiations for a broader free trade agreement between the United States and Japan2. For example, the USJTA reduces Japanese tariffs on the United States. Imports of chilled and frozen beef at 26.6% in 2019 and 9% in 2033, while the CPTPP lowers Japan`s 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 has granted preferential market access treatment to major U.S. competitors in the Japanese market, including Australia, Canada and New Zealand, under CPTPP in 2018 and 2019. [4] The President retains the trade promotion authority – the right to submit the trade agreement to Congress for ratification by yes or no, i.e. without amendment, by June 2021, when it will be renewed. United States Senate Committee on Finance (2018), «Breaking Down Section 232 of the Trade Expansion Act of 1962,» Us-Senate, available from www.finance.senate.gov/chairmans-news/breaking-down-section-232-of-the-trade-expansion-act-of-1962#targetText=Section%20232%20of%20the%20Trade,security%20of%20the%20United%20States.

5. ustr.gov/countries-regions/japan-korea-apec/japan. Shaken by electoral policies in the world`s largest economy and geopolitical divisions among its major players, it is difficult to imagine how the rules-based international trading system can be maintained.

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