US-Japan trade deal on track

US-Japan trade deal on track

With President Trump and Japanese PM Abe set to meet at the U.N. Wednesday, a trade deal between the two nations is falling into place.

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“The negotiating process has been completed and the results will be submitted to the two leaders," said Masato Otaka, Press Secretary, Foreign Ministry of Japan. "Everything is on track. The important thing is to focus on the entry into force.”

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Japan’s Foreign Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer met on the sidelines of the 74th UN General Assembly on Monday and, according to Japanese media, “fully agreed on all trade talks". Motegi told reporters the deal “will be satisfactory to Japan” and the text would be released Wednesday.

The two sides agreed US tariffs on Japanese automobiles would be rolled back sometime in the future with no further specification on exact timing. In exchange for the removal of taxes on Japanese automobiles, Japan would in turn decrease tariffs against beef imported from the US from 38.5 percent to 9 percent.

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The WTO Most Favored Nation (MFN) treatment is still a mainstay of the multilateral trading system and requires WTO members to provide favorable trade terms and remove tariff barriers as part of any bilateral trade agreement with another member. The removal of auto tariffs on Japanese imports would bring the US into compliance with this WTO regulation.

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