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- Japan: Trade deal signed with the US – Deutsche Bank
Japan: Trade deal signed with the US – Deutsche Bank
Deutsche Bank analysts note that the US President Trump and Japanese PM Abe signed the “first stage” of an initial pact after meeting at the UNGA yesterday, with Trump saying that he expects “in the fairly near future” that the US will have “final comprehensive deals signed with Japan.”
“In terms of specifics, the trade deal will help US farmers by opening up Japan’s agricultural market as it will eliminate or reduce tariffs on $7.2bn of US food and agricultural products, helping US beef, corn, pork and other farmers. Trump also said that the deal, which also covers a $ 40bn digital trade agreement, would help reduce a “chronic” US trade deficit and both the countries’ goal is for the accord to go into force on January 1, 2020. The limited deal will also not require a vote from Congress according to Trump while Japanese PM Abe said that he received direct confirmation from President Trump that the US won’t slap tariffs on Japan’s auto exports. Markets will hope this eventually extends to European autos.”
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