WASHINGTON (Reuters) – US President Donald Trump said on Monday that Washington had reached trade agreements with Tokyo which could be implemented without the approval of colleagues, but not sure to confirm for Japan automatic exports would not result in new tariffs.
US President Donald Trump makes a walk to engage with the media before boarding on Sea One for a trip to New Mexico, on the South White House in Washington, 16 September, 2019. REUTERS / Sarah Silbiger.
In a letter to the US Congress issuing the White House, Trump said that he intends to communicate the agreements on tariff and digital trade barriers “in the coming weeks” and was giving notice. for lawmakers that the tariff discussion under trade law would make provision allowing the US President to make fair justifications by proclamation.
“In addition, I will enter into an Executive Agreement with Japan on digital trade,” said Trump in the letter.
In either of the two agreements in Congress, it was not necessary to vote on the “fast road” approval process. The Trump administration last year informed the Conference that they would be negotiating with Japan on this method.
On a critical issue for Japan, the Trump announcement did not know whether it agreed to impose threatened national security tariffs on Japanese vehicles and car parts. Tokyo was a major motivating factor in negotiating trade with Washington by avoiding “Section 232” tariffs up to 25%.
“At the final stage, we intend to reiterate that 232 will not be implemented,” said Foreign Minister Toshimitsu Motegi, Japan's chief negotiator, with a regular news conference in Tokyo on Tuesday.
Finance Minister Taro Aso said there would be no provision in currencies in the discussion – another concern for Tokyo. Japan wants to avoid any agreement that would hinder its ability to intervene in the foreign exchange markets where it occurs frequently in the winter, or to expand the Japanese Bank's massive monetary stimulus.
Trump said after the G7 summit last month that he was not considering automatic tariffs “at this moment”.
Over the past year, the scope of the talks has been reduced to exclude the automotive sector, the source of most of the US $ 67 billion trade deficit with Japan.
Instead, Trump and Prime Minister Shinzo Abe announced in August an agreement in principle on dealing with reductions in tariffs on agricultural and industrial goods, but not autonomous.
Robert Lighthizer, spokesman for US Trade Representative, could not find the point immediately to comment on the letter and trade markets.
Trump and Abe at the French G7 summit said they hoped to sign the agreement at the United Nations General Assembly in New York.
Trump's letter did not reveal any content in the agreements, but Japan previously said that he was willing to discuss a deal that would reduce agricultural tariffs with levels previously involved under the Trans-Pacific Partnership, which Trump rejects. its third day in office in 2017.
Trump's letter stated that the United States would enter into further trade negotiations with Japan.
“My Administration looks forward to continued co-operation with the Conference on further negotiations with Japan to achieve a comprehensive trade agreement with more fair and reciprocal trade between the US and Japan,” said Trump.
US technology industry officials say they expect the digital trade agreement with Japan to be closely aligned with provisions in the new U-Mexico-Canada Agreement (USMCA), which follows the Civil Service model for internet development.
USMCA provisions aim to ensure data flows across borders without taxation, prevent local data server needs and limit the ability of government to disclose source code by the companies they regulate.
Regarding Trump, signing part of a partial trade with Japan, which was focused primarily on agriculture, would give some relief to US farmers who had been hit by a US-China 14-month trading war and lost the market.
Reporting by David Lawder and Eric Beech in Washington, and Kiyoshi Takenaka and Tetsushi Kajimoto in Tokyo; Edited by Shri Navaratnam and Sandra Maler
(TTTranslate tags) USA (t) USA (t) TRADE (t) JAPAN (t) Automobiles / Auto Parts (Legacy) (t) Agricultural Markets (t) Auto Manufacturers and Trucks (TRBC) (t) Japanese Trade (t) / Current Account (t) International Trade Tariffs (t) (t) Diplomacy / Foreign Policy (t) Technology Automobiles and Auto Parts (TRBC) (t) (TBC) Asia / Pacific (t) Major News (t) Internet / World Network (t) Grains (t) US Government News (t) USA