Trump Clarifies Aim for Comprehensive FTA with Japan

March 20, 2019

Washington- The United States aims to conclude a comprehensive free trade agreement with Japan on areas including services, U.S. President Donald Trump said in a report submitted to Congress on Tuesday.

In the Economic Report of the President, Trump expressed his frustration over Japanese tariffs on beef and pork, suggesting that his administration will adopt a tough stance in its trade negotiations with Tokyo that are slated to be launched shortly.

Naming an envisaged pact with the United States as a trade agreement on goods, or TAG, the Japanese government has said that the upcoming negotiations will mainly target tariff issues.

By contrast, the U.S. government is eyeing a more comprehensive FTA with Japan that would also cover the services sector as well as foreign exchange issues.

Referring to his administration's intent to enter into FTA negotiations with Japan, the European Union and Britain, Trump said in the annual report, "These agreements could benefit the United States through reducing trade barriers in several areas, including agriculture, manufacturing and services."

The report explained that Japan imposes a 38.5 pct tariff on U.S. beef and adopts a variable system of tariffs on pork that would impose heavier import duties on cheaper foreign products.

"Beyond agriculture, other tariffs and nontariff barriers stand in the way of U.S. goods and services exports to Japan," Trump said.

He also showed concerns over a possible deterioration in U.S. exports of agricultural products due to the effectuation of the Trans-Pacific Partnership multilateral trade pact.

After the United States withdrew from the TPP framework, the revised TPP came into force in December last year among Japan, Australia and nine other countries.

"A number of international competitors, such as Australia, face much lower Japanese tariffs, so a free trade agreement with Japan could level the playing field for U.S. exporters," Trump said in the report. Jiji Press