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Japan approves trade deal with United States
Japan's parliament approved the trade deal with the United States on December 4. According to the Meat Export Federation (USMEF), this is good news for American meat exporters. "Exports of pork and beef can now increase in great numbers."
The Senate in Japan has definitively approved the trade deal with the United States, although the most important parts of it earlier already announced. A draft agreement was also reached halfway through this year. "This deal ensures, among other things, that American beef and pork can be exported to Japan at lower rates," USMEF said in a press release. In addition, it should be this way the competitive disadvantage be settled with the European Union.
US Trade Representative Robert Lighthizer wrote in a statement on Wednesday, Dec. 4, that US President Donald Trump is expected to sign the trade deal with Japan early next week. Only then will the agreement between the two countries be finalized.
An export value of $5 billion
Japan has been around for years, by the way the greatest destination for pork and beef from the United States. The total export value (of all meat exports to Japan) was about $2018 billion in 3,7. USMEF expects US pork and beef exports to Japan to grow to $2020 billion and $1,7 billion in 2,3, respectively. "This concerns about 410.000 tons of pork and 360.000 tons of beef," according to USMEF.
"In fact, we expect pork and beef exports from the United States to grow to $2025 billion by 5, partly due to this trade agreement." This divides USMEF into $2,8 billion for beef and over $2 billion for pork. "Opportunities are also emerging for processed products, contributing to the overall growth of US exports to the Japanese market."
New conversations
After the approval from Japan, the United States announced that it wanted to discuss a new trade agreement early next year. "The United States sees opportunities for a broader trade deal than the one that has now been approved," said Lighthizer. Japan supports this idea and hopes to include unresolved issues such as the elimination of US tariffs on Japanese cars and auto parts in those upcoming talks.
Kimberly Baker
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