On Wednesday, Japan agreed to cut or eliminate tariffs on $7.2 billion worth of U.S. ag commodities and erect new quotas under a trade deal that US President Trump and Japanese Prime Minister Abe signed.
About 88% of the roughly $14.1 billion worth of U.S. ag exports to Japan would be either tariff-free or receive preferential treatment once the new deal is in place, a senior U.S. government official told reporters.
The pact, which is tentatively scheduled to be implemented Jan. 1, goes much of the way toward restoring the additional market access U.S. ag exporters would have gotten if the U.S. had not pulled out of the Trans-Pacific Partnership, U.S. government officials said. While there are some exceptions –most notably rice and dairy–, conditions under the new deal would put U.S. ag commodities under equal tariff treatment as ag commodities from TPP countries.
Japan has agreed to eliminate all tariffs immediately upon implementation for products like almonds, blueberries, walnuts, sweet corn, sorghum and broccoli. Japan will also begin phasing in lower tariffs on products such as beef, pork, wine, cheese, whey, ethanol, oranges. Separately, Japan has agreed to erect new quotas for U.S. wheat, malt, potato starch, glucose, fructose, cornstarch and insulin.
Reaction Western Growers
In response to the announcement of the U.S.-Japan Trade Agreement, Western Growers President and CEO Tom Nassif issued the following statement: “Western Growers extends its appreciation to President Trump for his leadership on the U.S.-Japan Trade Agreement, which opens up real market opportunities for producers of fresh fruits, vegetables and tree nuts. Our members will now have access to the Japanese market on equal footing with the Asia-Pacific signatories of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.”
“Japan is the third-largest market for American agricultural products, and the elimination of tariffs on produce products such as almonds, blueberries, walnuts, broccoli and prunes – as well as the staged tariff elimination for additional products like cherries and oranges – will result in significant export opportunities for our members and the broader fresh produce industry.
National Potato Council lauds signing
Also, in a press release the National Potato Council applauded the signing of the deal. Kam Quarles, CEO of the National Potato Council: “Today’s agreement puts the U.S. potato industry back on a level playing field with foreign competitors in accessing our largest export market in terms of tariffs. Now we must turn to gaining Japanese market access approval for products such as fresh (table stock) potatoes and year-round access for chipping potatoes.”
