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Japan Edges Closer to Approving Trade Deal

At nearly $13B a year, Japan is fourth-largest destination for U.S. farm exports

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Japan’s lower house of parliament approved on Tuesday a limited trade deal Prime Minister Shinzo Abe agreed with the United States, clearing the way for tariff cuts next year on items including U.S. farm goods and Japanese machine tools, reports Reuters.

Japan and the United States last month formally signed the limited trade deal to cut tariffs on U.S. farm goods, Japanese machine tools and other products while staving off the threat of higher U.S. car duties.

But there is uncertainty over how much progress Japan can make in negotiating the elimination of U.S. tariffs on its cars and car parts, a major sticking point.

Russell Boening, president of the Texas Farm Bureau, told Congress Wednesday that the recent trade deal with Japan is welcome, but U.S. negotiators still have work to do.

“It is obvious the U.S.-Japan Trade Agreement is a win; however, the U.S. must pursue the next phase of negotiations with Japan,” Boening told the House Ways and Means Subcommittee for Trade. “Not all agricultural products, such as rice and some dairy products, were included in this agreement. We must work toward additional market access. Sanitary, phytosanitary and biotechnology issues should also be addressed.”

At nearly $13 billion a year, Japan is the fourth-largest destination for U.S. farm exports.

“While we have a strong trading relationship with Japan, we are about to make substantial advances,” Boening said. “The new U.S.-Japan trade agreement was welcome news for farm and ranch families across the entire country. This agreement will level the Japanese trade playing field.”

Boening urged lawmakers to approve an expanded trade agreement expected next year.

“A fully comprehensive trade agreement with Japan is desperately needed," he says. "We appreciate the administration and other leaders in Washington who continue striving for more free and fair trade."

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