While American farmers are rewarded, the new mini-agreement between the United States and Japan does not resolve disputes over car trade. Trump said the two countries were continuing to work toward a broader agreement. Following the joint announcement, the White House announced that the Trump administration is considering the agreement, to be signed next month, as the “first step” in a broader trade agreement with Japan, whose negotiations would address other key issues, such as trade in services, and will continue after the signing of the first-phase agreement. Japan has not yet formally decided on its counterpart`s latest proposals for an “orchestrated” approach. The news of an American pact with Japan may seem familiar. The agreement was first announced at the Group of 7 summit in Biarritz, France, in August. At the UN Assembly last month, the two countries signed an agreement in principle. Trump has threatened to impose import taxes on foreign cars because they pose a threat to U.S. national security. At the UNITED Nations General Assembly, Japanese Prime Minister Shinzo Abe told reporters that Trump had assured him that an earlier agreement to spare Japan from new tariffs on cars was still in place. “We have been working on an agreement with Japan for a long time and we have agreed on the principle,” Trump said at the G7 summit in southwestern France. On August 25, 2019, President Donald Trump and Japanese Prime Minister Shinzo Abe jointly announced that the United States and Japan had reached agreement on the fundamentals of a bilateral trade agreement on access to agricultural markets, industrial tariffs and digital trade. At this stage, the two countries have provided little detail on the fundamental principles on which they have agreed and it is expected that further negotiations and technical work will be required to reach an agreement.
However, both countries have stated that they intend to conclude and sign the agreement at the end of September at the time of the UN General Assembly. This report provides an overview of the announced agreement, as well as the prospects and dates for completion and effective entry into force.