Donald Trump hails victory for American farmers as US and Japan sign limited trade deal

Agreement will lead Japan to eliminate or reduce tariffs on an additional US$7 billion of US food and agricultural products

In return, Washington has agreed to cut US tariffs on US$40 million in Japanese agricultural goods and to ease tariff rate quotas on beef

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US President Donald Trump shakes hands with Japan’s ambassador to the US Shinsuke Sugiyama in front of US Trade Representative Robert Lighthizer. Photo: Reuters

Published: 6:34am, 8 Oct 2019Updated: 9:12pm, 8 Oct 2019

The United States and Japan signed a limited trade agreement on Monday, a deal that would win back benefits American farmers lost when US President Donald Trump pulled out of a broader Asia-Pacific pact his first week in office.

US farmers have been operating at a disadvantage in Japan since Trump withdrew from the Trans-Pacific Partnership agreement, which had been negotiated by the Obama administration.

The other 11 Pacific Rim countries, including big farm producers such as New Zealand and Canada, went ahead without the United States and were enjoying preferential treatment in Japan.

“This is a huge victory for America’s farmers, ranchers and growers. And that’s very important to me,” Trump said at the signing of the trade pact between Japanese Ambassador to the US Shinsuke Sugiyama and US Trade Representative Robert Lighthizer at the White House.

But Tami Overby, senior director on Asia and trade issues at the McLarty Associates consultancy, said the US’ competitors in agriculture got a two-year head start and used it to sign multi-year contracts in Japan to sell farm products.

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