President Donald Trump and Japanese Prime Minister Shinzo Abe signed a trade deal that covers agriculture and digital trade between the two countries in New York. But the agreement does not cover a huge portion of the U.S.-Japan relationship – autos.
Under the agreement, some $7.2 billion in U.S. ag goods will get improved access to the Japanese market, access equal to what would have resulted from the Trans-Pacific Partnership (TPP) agreement. After the deal is in place, more than 90 percent of U.S. ag goods will be able to go to Japan with more-favorable terms.
As for autos, that was kept out of the agreement. The issue had become a sticking point and prompted some downbeat expectations Tuesday for success. But jettisoning auto provisions helped seal the agreement signed by the two leaders in New York.
Most U.S. ag groups welcomed the deal and several indicated they looked forward to being on the same page as supplier from other countries that are part of the successor to TPP.
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