President Trump, as part of the government`s broader trade agenda, has long criticized the trade imbalance between the United States and Japan, the world`s largest and third-largest economies, respectively. To reduce the U.S. trade deficit by $56.7 billion, President Trump and Japanese Prime Minister Shinzo Abe have jointly announced their intention to open negotiations for a U.S.-Japan trade deal in 2018. The United States and Japan agree on merchandise trade and digital trade, with President Trump and Prime Minister Abe announcing the trade agreement on September 25, 2019 at the United Nations General Assembly in New York.6 Appendix II of the agreement sets out the rules of origin to determine whether a product is eligible for preferential tariff treatment or “from” the agreement. The product-specific provisions (Annex II of the agreement) set out the degree of change in the tariff classification to which non-original materials must be subject. The general note 36 is added to the HTSUS and contains the requirements of the agreement. Links to the text of the U.S.-Japan trade agreement and related documents are listed below. Under President Trump`s leadership, the United States and Japan agreed on early outcomes of negotiations on market access for certain agricultural and industrial products, as well as digital trade. The United States looks forward to continuing negotiations with Japan for a comprehensive agreement that would address the remaining tariff and non-tariff barriers and ensure fairer and more balanced trade.
In accordance with other bilateral free trade agreements, Schedule II of the trade agreement contains the rules of origin and origin to determine whether a product can benefit from preferential treatment. For the purposes of the trade agreement, a trademark originates in Japan if it meets one of the following criteria: 12. General Note 4 (a) (k) Schedule II of the trade agreement. ustr.gov/sites/default/files/files/agreements/japan/Annex_II_Tariffs_and_Tariff-Related_Provisions_of_the_United_States.pdf. “rules of origin,” a set of rules determining the nationality or country of origin of the goods. 5. ustr.gov/countries-regions/japan-korea-apec/japan. From a U.S. perspective, the trade agreement focuses on improving market access for U.S.
agricultural products. Prior to the trade agreement, $5.2 billion of Japan`s $14.1 billion in U.S. food and agricultural products was duty-free8. In addition, U.S. farmers will receive the same preferential treatment as farmers in the countries that are members of the Trans-Pacific Partnership (TPP)-7 comprehensive agreement. Businesses with Japan and U.S. trade are invited to review the text of the agreements and understand the potential benefits. To this end, measures can be taken immediately by the companies: 10.
U.S.-Japan trade agreements, Appendix I: Japan`s tariffs and customs provisions, I-B-5-1; ustr.gov/sites/default/files/files/agreements/japan/Annex_I_Tariffs_and_Tariff-Related_Provisions_of_Japan.pdf.