Trade Groups Applaud Japan Passage of US Trade Deal but Push for Broader Agreement

Agricultural trade associations applauded the Japanese Diet’s passage of the U.S.-Japan trade deal (see 1912040008) but urged the Trump administration to quickly begin working on a more comprehensive deal with Japan.

While the deal will eliminate certain tariffs on exports of U.S. fruit, vegetables and tree nuts, Western Growers, representing farmers in Arizona, California, Colorado and New Mexico, asked Trump to “follow through on his pledge to engage … in further trade talks.” President and CEO Tom Nassif said Dec. 5 that “additional barriers to trade” still remain, such as Japan’s “non-scientific” sanitary and phytosanitary measures that ban certain U.S. produce. “No trade deal will be complete without these reforms to the Japanese importation system.”

The U.S. Dairy Export Council and the National Milk Producers Federation said the deal will bring “benefits” to the U.S. dairy industry but urged the U.S. to “swiftly complete a Phase Two agreement,” which will “maximize opportunities” for U.S. agricultural exporters. The groups said negotiators should consult with Congress during the second phase of negotiations “to ensure that the unique needs of various constituencies, including farmers and food manufacturers, are taken into account.”

A more comprehensive agreement is “necessary” to deliver the “complete range of market access” for dairy exporters to compete in Japan, said Tom Vilsack, CEO of USDEC. He said the initial deal “will serve as a strong foundation for a broader” agreement. Jim Mulhern, CEO of NMPF, said the Trump administration should make it a “priority” to address the “missing pieces” from the phase one deal. “Trade negotiators must finish the job and deliver a full comprehensive agreement that prioritizes the needs of American dairy farmers,” Mulhern said.

The two groups said negotiations should address “protecting common cheese names” and tackle “remaining gaps and inequalities in market access” granted to U.S. competitors, such as the European Union. If the U.S. receives the same market access as its competitors, the U.S. could nearly “double its share” of the Japanese market over the next 10 years, the groups said.