Here’s What’s Holding Up the Japanese Trade Agreement

Trump is hoping to sign a limited trade deal with Japan when he meets Prime Minister Shinzo Abe Today at the U.N. General Assembly. But Japanese officials are pushing for a provision that would allow Tokyo to blow up the agreement and slap retaliatory duties on U.S. farm goods if Trump moves forward with tariffs on Japanese autos, Pro Trade’s Adam Behsudi reports from New York.

That request is hindering the final stages of trade talks, three people familiar with the situation told Adam. Negotiators are seeking a solution to give Japan a full exemption from Trump’s tariff threats – but Japanese officials remain cautious about any assurances from Washington.

The potential pact is a priority for U.S. agriculture. Farm exporters say they’re losing ground to competitors like Australia, Canada, the EU and other nations that have their own trade deals with Japan and are benefiting from greater access to the lucrative market.

Still, some U.S. lawmakers fear the mini-deal won’t do enough for ag to make up for Trump pulling out of the Trans-Pacific Partnership in 2017.

Source: AgriMarketing