The US-Japan Free Trade Agreement (FTA) was signed on October 7, 2019, and came into effect on January 1, 2020. It is a significant accomplishment in the history of US trade relations with Japan. The full text of the agreement is available online and can be accessed by anyone who wants to have a better understanding of the provisions of the agreement.
The US-Japan FTA is a comprehensive free trade agreement that covers a wide range of sectors, including agriculture, automotive, digital trade, and services, among others. It eliminates or reduces tariffs on various goods and services traded between the two countries. Additionally, it includes provisions related to intellectual property, labor, and the environment.
One of the most significant aspects of the US-Japan FTA is its impact on the agricultural sector. The agreement significantly lowers tariffs on US agricultural products such as beef, pork, wheat, and dairy, providing American farmers with access to a significant market. This will boost the US agricultural sector, which has been struggling with falling commodity prices in recent years.
The US-Japan FTA also includes provisions that support the digital economy, which has been growing rapidly in both countries. The agreement ensures that the two countries can engage in digital trade without the need for burdensome regulations and restrictions. This will benefit companies in both countries that use digital platforms to conduct business.
In terms of the automotive sector, the US-Japan FTA maintains the existing tariffs on Japanese cars but eliminates tariffs on US auto parts. This will benefit US auto parts manufacturers who will have access to the Japanese market, which is one of the largest auto markets in the world.
Overall, the US-Japan FTA is a significant achievement for both countries, and the full text of the agreement provides an insight into the provisions that will shape the future of trade relations between the US and Japan. It is essential for businesses and individuals to review the full text of the agreement to understand its impact on various sectors of the economy.