News

Progress made in US-Japan trade deal

The US and Japan have reportedly reached a deal in principle.

There are reports that a draft agreement could be signed by the end of September.

Ag goods and autos were the focus of trade talks between the two countries. According to the Nikkei Asian Review, the deal calls for Japan’s tariffs on US beef to be lowered gradually to 9% from the current 38.5%. It also says tariffs on low-grade pork would drop significantly and the 4.3% tariff on high-grade pork will eventually drop to zero. 

Indiana Farm Bureau President Randy Kron says this is the positive trade news that farmers need right now.

“That’s a good thing because we need a win,” he says. “We maybe have a short crop this year, but American farmers and Hoosiers are really good at producing crops and we’ve got to have access around the world to move our products.”

An agreement with Japan would allow the US to take advantage of lower tariffs rates available to countries in the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP).