Within four months of its implementation, President Trump and Prime Minister Abe will relocate their efforts for a broader trade deal. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. Under President Trump`s leadership, the United States and Japan agreed on early outcomes of negotiations on market access for certain agricultural and industrial products, as well as digital trade. The United States looks forward to continuing negotiations with Japan for a comprehensive agreement that would address the remaining tariff and non-tariff barriers and ensure fairer and more balanced trade. U.S. President Donald Trump signed a proclamation on December 26, 2019, in which he implemented two separate trade agreements with Japan (together the agreements) 1. The U.S.-Japan trade agreement (trade agreement) will abolish or reduce tariffs on agricultural and industrial products and set preferential quotas for U.S. products. The Digital Trade Agreement between the United States and Japan is a separate agreement between the two countries, which will provide guidance for priority areas of digital trade. The agreements came into force on January 1, 2020 and are expected to serve as the basis for further negotiations for a broader U.S.-Japan free trade agreement.2 The Digital Trade Agreement is a separate agreement that sets rules in the digital space.15 The content of the Digital Trade Agreement is virtually the same as the provisions of the U.S.-Mexico-Canada Digital Trade Agreement (USMCA). Notable provisions include a ban on tariffs on electronically transmitted content (e.g. B software and music) and the recognition of an electronic signature as a legally appropriate authentication tool. This is important as the World Trade Organization (WTO) electronic transfer moratorium is to be renewed at the 12th Ministerial Conference in June 2020 (see the next issue of EY tradewatch for a corresponding article).
12. General Note 4 (a) (k) in Schedule II of the trade agreement. ustr.gov/sites/default/files/files/agreements/japan/Annex_II_Tariffs_and_Tariff-Related_Provisions_of_the_United_States.pdf. 15. U.S. Customs and Border Services, CSMS #41149692, U.S.-Japan trade agreement: information on the request for preferential treatment. www.cbp.gov/trade/free-trade-agreements/japan. As we all celebrated the new year, January 1, 2020, implicitly launched a new trade agreement for the United States. The U.S.-Japan trade agreement is the latest free trade agreement that benefits U.S.
importers and exporters.1 Signed on October 7, 20192, along with the U.S.-Japan Digital Trade Agreement, which only came into force on New Year`s Day, after the implementation of existing legal procedures. It is important that it does not concern auto parts and auto parts, but the two countries have agreed to continue negotiations on the abolition of tariffs on these types of products.3 DLA Piper has experience in customs legislation and trade agreements. If you have any questions or ask for additional advice, please contact us. President Trump, as part of the government`s broader trade agenda, has long criticized the trade imbalance between the United States and Japan, the world`s largest and third-largest economies, respectively. To reduce the U.S. trade deficit by $56.7 billion, President Trump and Japanese Prime Minister Shinzo Abe have jointly announced their intention to open negotiations for a U.S.-Japan trade deal in 2018. The United States and Japan agree on merchandise trade and digital trade, President Trump and Prime Minister Abe announced the trade agreement on September 25, 2019 at the United Nations General Assembly in New York.