TelestackThe Wolfson Centre for Bulk Solids Handling Technology TOC EventsSailors SocietyCimbriaPort of Stockton
  • Cimbria
  • TBA Group
  • Telestack
  • Vigan
  • Van Aalst
  • Sailors Society

U.S. and Japan reach tariff agreement

U.S. and Japan reach tariff agreement

(Posted on 03/10/19)

The United States and Japan has announced a limited trade deal that includes Japan opening its markets to more than $7 billion in U.S. agricultural products.

President Donald Trump and Japanese Prime Minister Shinz? Abe announced the agreement during a meeting on the sidelines of the United Nations General Assembly meeting in New York.

“Japanese tariffs will now be significantly lower or eliminated completely on beef, pork, wheat, cheese, corn, wine and so much more,” Trump told reporters in New York.

Trump notified Congress last week that the U.S. and Japan were prepared to enter a limited agreement that would lower some tariffs and set terms of digital trade.

Under the agreement announced this week, Japan will eliminate or reduce tariffs on an additional $7.2 billion of U.S. food and agricultural products, according to a fact sheet issued by the White House. The document said out of the $14.1 billion in U.S. food and agricultural products imported by Japan in 2018, $5.2 billion were already duty free. The fact sheet did not list tariff figures for specific U.S. agricultural commodities; but they are believed to be equivalent — with the exception of rice and a portion of dairy products — to those granted by Japan to other countries under the former Trans Pacific Partnership trade agreement from which President Trump withdrew the United States during the first year of his presidency.

“Once this agreement is implemented, over 90 percent of U.S. food and agricultural products imported into Japan will either be duty free or receive preferential tariff access,” the White House noted.

Once implemented, Japan agreed it will reduce tariffs in varying stages for beef and pork. Tariffs will be eliminated immediately on over $1.3 billion worth of several types of produce and grain sorghum.

Japan’s effective tariff on imported U.S. wheat will drop to the same level as Canadian and Australian wheat imports. This is particularly important considering the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement – the successor to TPP entered into between Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – would make U.S. wheat imports less cost-competitive compared to other CPTPP countries without a separate U.S.-Japan agreement. In addition to matching the Canadian and Australian tariff schedule for U.S. wheat, Japan agreed to open country specific quotas for U.S. wheat and wheat product imports; but those specific numbers were not contained in the materials issued by the White House this week.

According to U.S. Wheat Associates, U.S. wheat represents about 50 percent of all the wheat Japan imports each year, currently valued at more than $600 million annually.

A Trump administration official noted during a Sept. 25 conference call: “When this agreement enters into force, we will immediately match and have the same tariff treatment as is the case with Canada, Australia, New Zealand, etc.”

In a press statement, U.S. Secretary of Agriculture Sonny Perdue said the agreement “helps level the playing field” between the U.S. and Japan and “is a particularly big win for our farmers and ranchers.”

Latest News

Cargill completes acquisition of Owensboro Grain Company

(Posted on 27/01/23)

Cargill has announced that it has completed the acquisition of Owensboro Grain Company, a fifth-generation... Read more


BHP selects seven companies to accelerate copper and nickel exploration

(Posted on 23/01/23)

BHP Xplor, an accelerator programme introduced by BHP in August 2022, has announced its first cohort... Read more


Trafigura makes carbon removal commitment as part of First Movers Coalition

(Posted on 16/01/23)

Trafigura Group Ptd Ltd., a market leader in the global commodities industry, has made a public carbon... Read more


Hefner assumes USGC global trade position in Washington

(Posted on 10/01/23)

Jace Hefner has joined the U.S. Grains Council (USGC) in its Washington, D.C., headquarters as the new... Read more


Cargill announces CFO transition

(Posted on 10/01/23)

Cargill has announced that Jamie Miller will step down as Chief Financial Officer to accept an opportunity... Read more


Adbri extends supply contract with ICL

(Posted on 10/01/23)

Adbri Limited has announced that it has extended its cementitious materials supply arrangement with... Read more


Dana Steel to replace imported raw materials with ‘Made in UAE’ supply

(Posted on 04/01/23)

Khalifa Economic Zones Abu Dhabi – KEZAD Group, the integrated trade, logistics, and industrial... Read more


GrainCorp to boost digital connectivity in the bush

(Posted on 23/12/22)

Australian agribusiness GrainCorp is co-leading a $12 million investment round into rural connectivity... Read more


BHP and OZ Minerals extend exclusivity period

(Posted on 20/12/22)

BHP has provided an update to its announcement on 18 November 2022 that confirmed BHP had entered into... Read more


Kaisa Hietala to join Rio Tinto Board

(Posted on 20/12/22)

Rio Tinto has appointed Kaisa Hietala as a non-executive director. Ms Hietala, a Finnish citizen, will... Read more


Van AalstPort of South LouisianaCleveland Cascades LtdTBA GroupViganBühler GmbH
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Port of South Louisiana
  • Cleveland Cascades Ltd
  • Port of Stockton

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping