Bilateral trade deal with U.S. hailed in Japan

September 26, 2019

Tokyo--Japanese government officials and business leaders have welcomed a joint statement signed by Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump in their meeting in New York on Wednesday to confirm their countries' final agreement on a bilateral trade pact.

"As the content of the trade deal is well balanced among agricultural and industrial products, it will be acceptable to Japanese farmers as well as auto and other industries," Chief Cabinet Secretary Yoshihide Suga said at a press conference on Thursday.

Suga said Japan will aim to officially sign the trade deal later this month.

Japanese farm minister Taku Eto said he was glad that Japan was able to maintain its agricultural market liberalization on par with levels of the Trans-Pacific Partnership free trade agreement.

Eto said he sees no immediate impact on the Japanese agriculture sector from the bilateral trade deal, adding that his ministry will boost efforts to win understanding from domestic farmers.

He also said his ministry will keep watch so the agriculture industry will not be hurt by measures to be implemented under the trade pact, such as the lowering of the country's 38.5 pct tariff on U.S. beef to 9 pct in stages.

The minister said he wants to review a policy package that includes measures aimed at supporting domestic farmers facing tough competition due to the TPP's effectuation late last year among Japan and 10 other member countries, not including the United States.

He also welcomed the fact that the United States will abolish or reduce tariffs on 42 items, including soy sauce, while expanding its low-tariff import quota for Japanese beef.

Under the deal, Japan was able to avoid additional U.S. tariffs on its automotive products.

In a meeting with industry minister Isshu Sugawara, Japan Automobile Manufacturers Association Chairman Akio Toyoda, who is also president of Toyota Motor Corp. <7203>, said he is pleased that a free and fair trade environment will be maintained and strengthened.

Toyoda called on Sugawara to support the Japanese auto industry to boost its competitiveness as a strategic sector.

Japan Business Federation (Keidanren) Chairman Hiroaki Nakanishi said in a statement that the biggest business lobby in the country appreciates that Japan and the United States have reached a well-balanced agreement that can contribute to the stable development of trade between the two countries. Jiji Press