Wall Street Journal writer Rebecca Ballhaus reported earlier this week that, “President Trump said Sunday the U.S. and Japan had reached a trade deal ‘in principle’ that would pave the way for more U.S. farm exports to Japan, while dropping the threat of increased U.S. tariffs on Japanese cars.
Big Trade Deal just agreed to with Prime Minister Abe of Japan. Will be great for our Farmers, Ranchers and more. Really big Corn purchase!
“‘We’ve been working on a deal with Japan for a long time,’ Mr. Trump said at an impromptu event at the Group of Seven world leaders summit, where he was joined for a second time that day by Japanese Prime Minister Shinzo Abe.
He said as part of the deal, Japan had agreed to buy a significant portion of the U.S.’s corn surplus.
The Journal article pointed out that, “Mr. Trump said he expected the leaders to sign the deal next month, around the time of the United Nations General Assembly.
“Mr. Abe said there was still ‘some remaining work that has to be done at the working level’ but that the two sides had reached a consensus on the core issues of agricultural and industrial trade.”
"We have excess corn in various parts of our country with our farmers because China did not do what they said they were going to do. And Prime Minister @AbeShinzo, on behalf of Japan, they're going to be buying all of that corn." — President @realDonaldTrumppic.twitter.com/cqRTDeKZLR
The Journal article indicated that, “The prime minister said Japan’s private sector would buy U.S. corn because of pest issues. ‘The Japanese private sector listens to the Japanese public sector,’ Mr. Trump quipped. ‘It’s a little different.’
More broadly, Ms. Ballhaus reminded readers that, “Mr. Trump pulled the U.S. out of the unratified 12-nation Trans-Pacific Partnership, which included Japan, on his first working day in office in 2017. A revised TPP took effect last year without the U.S., and now U.S. farmers are complaining as member countries—including Australia, Canada and New Zealand—as well as the European Union get greater access to Japan’s long-protected markets for beef, pork and dairy products.”
.@USTradeRep Lighthizer on today's trade announcement: "It has 3 parts—agriculture, industrial tariffs, and digital trade . . . This will open up markets to over 7 BILLION dollars of those products." pic.twitter.com/c0mYKjNViL
And Reuters writer Jeff Mason reported on Sunday that, “Trump said Japan had agreed to buy excess U.S. corn that is burdening farmers as a result of the tariff dispute between Washington and Beijing. Abe referred to a potential purchase of the corn and said it would be handled by the private sector.
“‘It’s a very big transaction, and we’ve agreed in principle. It’s billions and billions of dollars. Tremendous for the farmers,’ Trump told reporters about the deal during a joint announcement with Abe at the G7 meeting in France.”
On Twitter, several U.S. lawmakers reacted positively to the new trade development with Japan:
Good 2 hear Pres Trump/Abe announcement on trade w Japan Gr8 news for ag+farmers Next step is comprehensive deal @realDonaldTrump is delivering for USA
This is a very positive step forward. I have been a strong advocate for an agreement with Japan which would treat our agricultural products equally with their competitors. I am hopeful this potential trade deal will be done soon. https://t.co/SuCqUvwvqZ
A new #trade agreement with #Japan is good news as they are a top ten market for our #soybean producers. It will also help them as more #pork and #beef are exported to Japan as a value-added component. More bi-lateral deals are good for our producers!
A trade agreement with Japan is very important to NE’s AG economy. This and USMCA gives us more leverage against China to ensure America is treated fairly and they stop stealing our technology. China’s unfair trade costs us 1% of our GDP. https://t.co/BgFpcZsSTL
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
Reuters writer Pavel Polityuk reported today that, "Most Ukrainian regions have started 2023 spring sowing, seeding a total of 293,000 hectares of various crops, the agriculture ministry said on Friday."