Japan and the US agreed to start bilateral trade talks after meeting of Prime Minister Shinzo Abe and Trump. But after the meeting, Abe emphasized that the new framework would only be a Trade Agreement on Goods. It’s not a full Free Trade Agreement that includes investments and services. Both countries pledged in a joint statement to “respect positions of the other government.”
However, US Trade Representative Robert Lighthizer ignored the position of Japan. He told reporters he’s aiming for a full free trade deal requiring approval by Congress under the “fast track” trade negotiating authority law. Lighthizer added the talks will be handled in two “tranches” targeting an “early harvest” on reducing tariffs and non-tariffs barriers in goods.
In the joint statement, it’s noted that:
- For the United States, market access outcomes in the motor vehicle sector will be designed to increase production and jobs in the United States in the motor vehicle industries; and
- For Japan, with regard to agricultural, forestry, and fishery products, outcomes related to market access as reflected in Japan’s previous economic partnership agreements constitute the maximum level.
