When it comes to international trade, many countries establish free trade agreements (FTAs) to facilitate commerce between one another. The United States and Japan are two of the largest economies in the world, and their trade relationship is a crucial factor in the global economy. As such, it`s essential to ask the question: Does the US have a free trade agreement with Japan?
The short answer is no, the US and Japan do not currently have a free trade agreement. While the two countries have been negotiating a trade deal for years, they have yet to reach an agreement. The Obama administration had initiated negotiations for the Trans-Pacific Partnership (TPP), which would have included Japan as well as Canada, Australia, and other Pacific Rim countries. However, President Donald Trump withdrew the US from the agreement in 2017, claiming it was detrimental to American interests.
Since then, the US and Japan have been working to negotiate a bilateral trade agreement that would reduce trade barriers between the two countries. In August 2019, the US and Japan announced a trade deal that covered agriculture, industrial tariffs, and digital commerce. The agreement reduced tariffs on US agricultural exports to Japan and eliminated tariffs on Japanese industrial products. It also created new rules for digital trade, including provisions on data localization and intellectual property protection.
However, it`s important to note that the US-Japan trade deal is not a comprehensive free trade agreement. It does not cover all aspects of trade, such as services or investment, and it is not a permanent agreement. Instead, it is a limited agreement that will last for ten years, with the potential for review and renewal. Additionally, some of the provisions of the deal are contingent on the US and Japan reaching a more comprehensive trade agreement in the future.
In conclusion, while the US and Japan do not have a comprehensive free trade agreement, they have made progress in reducing trade barriers between the two countries. The 2019 trade deal between the US and Japan has made significant strides in improving trade relations between the two countries, though more work remains to be done. As the two nations continue to negotiate, it`s critical to monitor the progress made in the trade talks and their impact on the global economy.