“There is a chance that Trump will suspend pressure on Japan in trade to reach out to its voters,” said Junichi Sugawara, head of research at the Mizuho Research Institute. “It is possible that he will renew his threat of car fares.” “Between President Trump and myself, it has been firmly confirmed that no additional tariffs will be imposed,” Abe said at a news conference. “And with the entry into force of our trade agreements, I believe that our two economies can continue to grow and develop.” Automotive trade is the largest source of U.S. trade deficit, which is $67.6 billion with Japan. A U.S. document simply states that tariffs on cars and spare parts “will be subject to new negotiations for the abolition of tariffs.” This week, a new customs transit management system will be set up within the Association of Southeast Nations (Asean), which aims to accelerate trade in goods by road. The Asean Customs Transit System (Asean Customs Transit System) allows private companies to file a single transit return for customers that covers the transport of goods through several Asean countries, without the need to file customs declarations or modify vehicles each time. The online electronic transit declaration can be made directly to the Asean customs authorities. Companies can track the movement of their goods from the departure shipment to the final destination delivery. “It is not clear whether Washington is serious about continuing trade negotiations,” one of the sources said. TOKYO (Reuters) – Japan`s House of Commons on Tuesday approved a limited trade deal with the United States by Prime Minister Shinzo Abe, paving the way for tariff cuts next year for goods such as U.S. agricultural products and Japanese machine tools.
Trump also said that the signing ceremony with Abe, that the first phase of the agreement would cover the $40 billion digital trade between the world`s largest and third-largest economies. After the agreement is ratified, Japan and the United States will have four months to discuss new talks, and Trump said he wants to continue trade negotiations with Japan after the initial agreement. It could also help appease U.S. farmers and ranchers who have complained about Mr. Trump`s decision to withdraw the United States from the Trans-Pacific Partnership, a trade agreement with several countries that included Japan. Trump said he could secure better trading conditions for U.S. farmers through bilateral talks. “This is an important issue for us and for the United States,” he said Monday at the United Nations General Assembly in New York.
“I think the goal was already to sign the agreement by the end of September. To be honest, we still have some time. All my government colleagues are doing their best to achieve this goal. While Japan initially opposed Trump`s demands to negotiate a trade deal, the threat of tariffs on cars brought Japan to the negotiating table to discuss a more limited trade deal. But in May, the government said it would postpone the decision by six months as it continued to negotiate trade deals with Japan and the European Union, two major car importers to the United States. One of Japan`s top priorities in its negotiations was to ensure that its cars would not be affected by such a tax. The Digital Trade Agreement largely follows the U.S. model of internet development, which prohibits taxes on cross-border digital downloads and regulations that require “data relocation” – the storage of data on devices physically present within a country`s borders, according to the USTR. Cars are the biggest source of the $67 billion trade deal and Trump has repeatedly complained that U.S. automakers don`t have equal access to the Japanese market