The US-Japan Trade Agreement: What You Need to Know
In October 2019, the United States and Japan signed a new trade agreement. The deal, which went into effect on January 1, 2020, was hailed as a win for both countries. It reduces tariffs on a range of goods and services and opens up new opportunities for trade. But what does it mean for businesses and consumers, and how is it being implemented by US Customs and Border Protection (CBP)?
Here`s a rundown of what you need to know.
Key provisions of the US-Japan Trade Agreement
The trade agreement between the US and Japan covers a range of industries, including agriculture, digital trade, and autos.
Some of the key provisions of the agreement include:
– Reduced tariffs on US agricultural exports to Japan, including beef, pork, and wheat.
– Improved access for US dairy farmers to the Japanese market.
– Lowered tariffs on Japanese industrial goods, such as machine tools and auto parts.
– Digital trade provisions that will help ensure cross-border data flows and protect intellectual property rights.
Overall, the US-Japan Trade Agreement is expected to increase US exports to Japan by up to $7.2 billion.
How CBP is implementing the US-Japan Trade Agreement
CBP is responsible for enforcing the provisions of the US-Japan Trade Agreement at US ports of entry. This includes verifying the country of origin of goods and ensuring that they meet the agreement`s rules of origin requirements.
To qualify for the reduced tariffs under the agreement, goods must meet specific criteria. For example, for US beef to qualify for the lower tariff rate, it must come from cattle that were born, raised, and slaughtered in the US or Japan, or from cattle that were imported into Japan for feeding and then slaughtered in the US.
To help businesses navigate the complex rules of origin requirements, CBP has published a range of resources on its website. These include a list of products that are eligible for preferential treatment under the agreement, as well as detailed guidance on how to determine whether a good meets the agreement`s rules of origin requirements.
CBP is also responsible for investigating and addressing any allegations of fraud or misrepresentation related to the US-Japan Trade Agreement. This includes conducting audits and inspections of importers and exporters to ensure that they are complying with the agreement`s requirements.
What the US-Japan Trade Agreement means for businesses and consumers
For businesses, the US-Japan Trade Agreement presents new opportunities for trade and increased access to the Japanese market. For example, US beef producers are likely to benefit from the reduced tariffs, as will US dairy farmers and manufacturers of industrial goods.
Consumers may also see some benefits from the trade agreement, as lower tariffs on Japanese goods could lead to lower prices. However, the impact on consumer prices is likely to be relatively small, as the agreement primarily focuses on reducing tariffs on US exports to Japan.
Overall, the US-Japan Trade Agreement is a significant achievement for both countries and a sign of the growing importance of trade relations in the global economy. As CBP continues to implement the agreement, businesses and consumers alike will be watching closely to see what kind of impact it has on their bottom line.