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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. Businesses with Japan and U.S. trade are invited to review the text of the agreements and understand the potential benefits. To this end, action can be taken immediately by businesses: the Digital Trade Agreement is a separate agreement that sets rules in the digital space.15 The content of the Digital Trade Agreement is virtually the same as the provisions of the Digital Space Agreement – Mexico – Canada (USMCA). Notable provisions include a ban on tariffs on electronically transmitted content (e.g. B software and music) and the recognition of an electronic signature as a legally appropriate authentication tool. This is important as the World Trade Organization (WTO) electronic transfer moratorium is to be renewed at the 12th Ministerial Conference in June 2020 (see the next issue of EY tradewatch for a corresponding article). Within four months of its implementation, President Trump and Prime Minister Abe will relocate their efforts for a broader trade deal. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment.

On September 26, 2018, President Trump and Prime Minister Abe announced that the United States and Japan would begin negotiations for a trade agreement between the United States and Japan. On October 16, 2018, the USTR formally informed Congress that the Trump administration intends to begin negotiations after the necessary internal procedures. Thus began a 90-day consultation period under the Trade Promotion Authority, mandated by Congress, before negotiations began. Public notices on the negotiating objectives of a trade agreement were expected on 26 November 2018 and detailed negotiating targets were published on 21 December 2018. Negotiations began in April 2019. 2nd ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/ambassador-lighthizer-lauds-japan. 5. ustr.gov/countries-regions/japan-korea-apec/japan. Japan has requested ratification by submitting the agreements to its bicameral legislation, the National Parliament.

On November 19, 2019, the lower house of Parliament, the House of Representatives, voted on both agreements. On 4 December 2019, the Landtag approved the agreements after adoption by the Council, the House of Lords of the Landtag. In the absence of congressional approval in the United States, President Trump signed the agreements himself on December 26, 2019. Both agreements came into force on January 1, 2020. 15. U.S. Customs and Border Services, CSMS #41149692, U.S.-Japan trade agreement: information on the request for preferential treatment. www.cbp.gov/trade/free-trade-agreements/japan. 4.

www.whitehouse.gov/briefings-statements/joint-statement-united-states-japan/. DLA Piper has experience in customs legislation and trade agreements. If you have any questions or ask for additional advice, please contact us. This agreement provides for the limited application of safeguard measures allowing temporary increases in tariffs when imports exceed a predetermined triggering measure.