U.S.-Japan sign trade deal

Canadian growers should be aware of the more favourable circumstances for some American horticultural products going to Japan. The competitive landscape changed with the recent signing of the U.S.-Japan Trade Agreement on the sidelines of UN meetings.


Japan has committed to eliminating tariffs, enacting tariff reductions, or allowing a specific quantity of imports at a low duty (generally zero). Importantly, the tariff treatment will match the tariffs that Japan provides preferentially to countries such as Canada in the Comprehensive and Progressive Trans-Pacific Partnership (CP-TPP). The deal also underlines the American preference for bilateral trade deals. 


Out of the $14.1 billion in U.S. food and agricultural products imported by Japan in 2018, $5.2 billion were already duty free. Under this first-stage initial tariff agreement, Japan will eliminate or reduce tariffs on an additional $7.2 billion of U.S. food and agricultural products.

Tariffs will be eliminated immediately on more than $1.3 billion of U.S. farm products including, for example:
•   almonds
•   blueberries
•   cranberries
•   walnuts
•   sweet corn
•   grain sorghum
•   food supplements
•   broccoli
•   prunes

Other products valued at $3 billion will benefit from staged tariff elimination. This group of products includes, for example:
•   wine
•   cheese and whey
•   ethanol
•   frozen poultry
•   processed pork
•   fresh cherries
•   beef offal
•   frozen potatoes
•   oranges
•   egg products
•   tomato paste


The agreement goes into effect in January 2020. 


Source:  USDA September 26, 2019 news release

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Monday, September 30, 2019

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