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| Trump Announces Limited Trade Pact With Japan | Trump Announces Limited Trade Pact With Japan |
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| The United States and Japan signed a limited trade deal on Wednesday that will open Japanese markets to American farm goods and secure a win for an administration that has struggled to finalize trade pacts with China, Canada, Mexico and other countries. | The United States and Japan signed a limited trade deal on Wednesday that will open Japanese markets to American farm goods and secure a win for an administration that has struggled to finalize trade pacts with China, Canada, Mexico and other countries. |
| The deal, announced as President Trump met with Prime Minister Shinzo Abe of Japan on the sidelines of a meeting of world leaders in New York, will reduce Japanese barriers to American beef, pork, wheat, cheese, almonds, wine and other products, while cutting American tariffs on Japanese turbines, machine tools, bicycles, green tea, flowers and other goods. The two countries have also reached an agreement on digital trade that they hope will serve as a model for negotiations with other countries. | |
| In a news conference on Wednesday, Mr. Trump said Japan would open its markets to $7 billion of American agricultural goods, calling the pact a “huge victory for America’s farmers, ranchers and growers.” | |
| The agreement came after a late decision by the United States to ease a tough stance on imports of Japanese cars, according to people familiar with the talks. It was not immediately clear what protections or new access the United States had offered the Japanese automotive industry, which the Trump administration has pointed to as a major contributor to the American trade deficit in goods with Japan. | The agreement came after a late decision by the United States to ease a tough stance on imports of Japanese cars, according to people familiar with the talks. It was not immediately clear what protections or new access the United States had offered the Japanese automotive industry, which the Trump administration has pointed to as a major contributor to the American trade deficit in goods with Japan. |
| Neither Mr. Trump nor Mr. Abe mentioned the industry in his initial remarks. In a joint statement issued Wednesday, however, the United States and Japan vowed to “refrain from taking measures against the spirit of these agreements” and “make efforts for an early solution to other tariff-related issues.” | |
| Japan had insisted on firm assurances that Mr. Trump would not impose tariffs on its cars, as he has threatened in the past, if the two countries proceeded with a trade deal. Japanese negotiators had pushed to include a clause in the pact that would cause the agreement to expire if Mr. Trump imposed car tariffs under Section 232 of the Trade Expansion Act, causing a rift that threw the trade deal into question. But both the United States and Japan have been eager to announce some kind of deal this week to cement a partnership between Mr. Trump and Mr. Abe. | Japan had insisted on firm assurances that Mr. Trump would not impose tariffs on its cars, as he has threatened in the past, if the two countries proceeded with a trade deal. Japanese negotiators had pushed to include a clause in the pact that would cause the agreement to expire if Mr. Trump imposed car tariffs under Section 232 of the Trade Expansion Act, causing a rift that threw the trade deal into question. But both the United States and Japan have been eager to announce some kind of deal this week to cement a partnership between Mr. Trump and Mr. Abe. |
| The president’s top trade adviser, Robert Lighthizer, told reporters that “at this point, it is certainly not our intention, the president’s intention, to do anything on autos, on 232s, on Japan.” | The president’s top trade adviser, Robert Lighthizer, told reporters that “at this point, it is certainly not our intention, the president’s intention, to do anything on autos, on 232s, on Japan.” |
| For the Trump administration, the deal with Japan will serve as a bright spot on an otherwise troubled trade front. | For the Trump administration, the deal with Japan will serve as a bright spot on an otherwise troubled trade front. |
| Mr. Trump and his advisers are bogged down in difficult trade negotiations with China, and waiting on congressional Democrats — who are now preoccupied with an impeachment inquiry — to approve the revised North American Free Trade Agreement with Canada and Mexico. The Trump administration is also poised to levy new tariffs on billions of dollars of European products as part of a dispute over European aircraft subsidies, exacerbating trans-Atlantic trade tensions. | Mr. Trump and his advisers are bogged down in difficult trade negotiations with China, and waiting on congressional Democrats — who are now preoccupied with an impeachment inquiry — to approve the revised North American Free Trade Agreement with Canada and Mexico. The Trump administration is also poised to levy new tariffs on billions of dollars of European products as part of a dispute over European aircraft subsidies, exacerbating trans-Atlantic trade tensions. |
| The Japan deal may help quiet criticism from American farmers who have complained of lost markets as a result of Mr. Trump’s trade war with China and his withdrawal from the Trans-Pacific Partnership, a multicountry trade deal that would have reduced trading barriers with Japan. | The Japan deal may help quiet criticism from American farmers who have complained of lost markets as a result of Mr. Trump’s trade war with China and his withdrawal from the Trans-Pacific Partnership, a multicountry trade deal that would have reduced trading barriers with Japan. |
| In a statement Wednesday, the United States Trade Representative said that once the deal is implemented, American farmers and ranchers will have the same advantages in Japan as the countries that signed on to the Trans-Pacific Partnership without the United States. | In a statement Wednesday, the United States Trade Representative said that once the deal is implemented, American farmers and ranchers will have the same advantages in Japan as the countries that signed on to the Trans-Pacific Partnership without the United States. |
| Mr. Trump said on Wednesday that he signed the deal with Japan to help farmers who have been hurt by the tariffs China has imposed in response to his administration’s tariffs on $360 billion worth of goods. | Mr. Trump said on Wednesday that he signed the deal with Japan to help farmers who have been hurt by the tariffs China has imposed in response to his administration’s tariffs on $360 billion worth of goods. |
| “The American farmer and rancher has been targeted by China,” he said. “The reason I did it is because you’ve been so loyal.” | “The American farmer and rancher has been targeted by China,” he said. “The reason I did it is because you’ve been so loyal.” |
| Mr. Trump added that he thinks “there’s a good chance we’re going to make a deal” with China. “We’re getting closer and closer,” he said. Negotiators from both countries are expected to meet in Washington next month for another round of discussions, ahead of an Oct. 15 deadline that would increase tariffs on $250 billion worth of products to 30 percent from 25 percent. | Mr. Trump added that he thinks “there’s a good chance we’re going to make a deal” with China. “We’re getting closer and closer,” he said. Negotiators from both countries are expected to meet in Washington next month for another round of discussions, ahead of an Oct. 15 deadline that would increase tariffs on $250 billion worth of products to 30 percent from 25 percent. |
| American farmers welcomed the Japanese trade agreement. Doug Goyings, an Ohio wheat farmer and the chairman of U.S. Wheat Associates, said the deal would lower Japanese tariffs on wheat to the same level paid by producers in Canada and Australia, two countries that moved ahead in signing the Trans-Pacific Partnership with Japan. “This agreement puts U.S. wheat back on equal footing,” Mr. Goyings said. | American farmers welcomed the Japanese trade agreement. Doug Goyings, an Ohio wheat farmer and the chairman of U.S. Wheat Associates, said the deal would lower Japanese tariffs on wheat to the same level paid by producers in Canada and Australia, two countries that moved ahead in signing the Trans-Pacific Partnership with Japan. “This agreement puts U.S. wheat back on equal footing,” Mr. Goyings said. |
| The new Japan deal is far more limited than the Trans-Pacific Partnership and other traditional trade pacts, which cover a wide range of industries and rules that govern trade. But it will still help to bolster the Trump administration’s argument that it has a positive trade agenda for breaking down trade barriers and expanding markets for American exporters, not just picking fights and levying tariffs, as some critics suggest. | The new Japan deal is far more limited than the Trans-Pacific Partnership and other traditional trade pacts, which cover a wide range of industries and rules that govern trade. But it will still help to bolster the Trump administration’s argument that it has a positive trade agenda for breaking down trade barriers and expanding markets for American exporters, not just picking fights and levying tariffs, as some critics suggest. |
| On Wednesday, Mr. Trump said that the deal would cover “a big chunk” of the relationship but that “in the fairly near future we’re going to be having a lot more very comprehensive deals signed with Japan.” | On Wednesday, Mr. Trump said that the deal would cover “a big chunk” of the relationship but that “in the fairly near future we’re going to be having a lot more very comprehensive deals signed with Japan.” |
| The Trump administration has said it will continue with a second stage of negotiations with Japan in a push toward a more comprehensive trade deal. Companies and industry groups have urged the administration to continue working toward a more traditional trade agreement that would protect a wider variety of businesses without delay. | The Trump administration has said it will continue with a second stage of negotiations with Japan in a push toward a more comprehensive trade deal. Companies and industry groups have urged the administration to continue working toward a more traditional trade agreement that would protect a wider variety of businesses without delay. |
| Michael Beckerman, the president of the Internet Association, which represents major companies including Google, Amazon, eBay and Uber, said the digital trade provisions that the United States and Japan had agreed on would expand the $38 billion in digital trade between the two countries and enshrine important rules of the road. The agreement prohibits customs duties on digital products like e-books and software, ensures the free flow of data across borders and prohibits governments from arbitrarily accessing sensitive source code and algorithms, among other protections sought by the tech industry. | Michael Beckerman, the president of the Internet Association, which represents major companies including Google, Amazon, eBay and Uber, said the digital trade provisions that the United States and Japan had agreed on would expand the $38 billion in digital trade between the two countries and enshrine important rules of the road. The agreement prohibits customs duties on digital products like e-books and software, ensures the free flow of data across borders and prohibits governments from arbitrarily accessing sensitive source code and algorithms, among other protections sought by the tech industry. |
| Mr. Beckerman said there was “still more work to be done” to ensure that the rest of America’s digital trade framework, including intellectual property protections and government purchases of technology products, was included in a full free trade agreement. “But this is an important first step,” he said. | Mr. Beckerman said there was “still more work to be done” to ensure that the rest of America’s digital trade framework, including intellectual property protections and government purchases of technology products, was included in a full free trade agreement. “But this is an important first step,” he said. |
| Myron Brilliant, the head of international affairs at the U.S. Chamber of Commerce, said that the announcement would spur economic growth and increase sales on both sides of the Pacific, but that it was “not enough.” | Myron Brilliant, the head of international affairs at the U.S. Chamber of Commerce, said that the announcement would spur economic growth and increase sales on both sides of the Pacific, but that it was “not enough.” |
| “The chamber strongly urges the administration to hold fast to its commitment to achieve a comprehensive, high-standard trade agreement with Japan that addresses the full range of our trade priorities, including services, intellectual property protection and regulatory barriers to trade,” he said. | “The chamber strongly urges the administration to hold fast to its commitment to achieve a comprehensive, high-standard trade agreement with Japan that addresses the full range of our trade priorities, including services, intellectual property protection and regulatory barriers to trade,” he said. |
| The limited deal with the United States has been more controversial for Mr. Abe, who faces criticism at home that he has given away some of the benefits of the Trans-Pacific Partnership but obtained little in return. | The limited deal with the United States has been more controversial for Mr. Abe, who faces criticism at home that he has given away some of the benefits of the Trans-Pacific Partnership but obtained little in return. |
| But Mr. Abe has been eager to quash the threat of car tariffs that could devastate the Japanese industry, America’s second-largest source of imported cars after Mexico. He has also been seeking to reinforce a partnership with the United States that is seen as crucial to counter strategic challenges from China and North Korea. | But Mr. Abe has been eager to quash the threat of car tariffs that could devastate the Japanese industry, America’s second-largest source of imported cars after Mexico. He has also been seeking to reinforce a partnership with the United States that is seen as crucial to counter strategic challenges from China and North Korea. |
| Mr. Abe called the deal “a win-win outcome for Japan and the United States” as he signed documents alongside Mr. Trump on Wednesday. “The American team was very tough,” Mr. Abe said. | Mr. Abe called the deal “a win-win outcome for Japan and the United States” as he signed documents alongside Mr. Trump on Wednesday. “The American team was very tough,” Mr. Abe said. |