Jeremy Hunt, British Secretary of State for Foreign and Commonwealth Affairs, shakes with Japanese Prime Minister Shinzo Abe during a courtesy call at the latter’s official residence in Tokyo, Japan. Photo courtesy of PTI
WASHINGTON April 17 (NNN-KYODO) – Japan said Tuesday it has agreed with the United States to include digital trade in just-started negotiations for a bilateral trade agreement that Washington regards as a means to cut its “very large” trade deficit with Tokyo.
Speaking to reporters after the first round of talks with U.S. Trade Representative Robert Lighthizer in Washington, Japanese economic revitalization minister Toshimitsu Motegi said they started negotiations on trade in goods such as agricultural products and automobiles, and agreed to start talks on digital trade, an area including e-commerce, at an appropriate time.
Separately, the USTR said after the two-day meeting that the two officials “discussed trade issues involving goods, including agriculture, as well as the need to establish high standards in the area of digital trade.”
“In addition, the United States raised its very large trade deficit with Japan — $67.6 billion in goods in 2018,” it said.
Motegi and Lighthizer reaffirmed they will conduct negotiations and achieve substantive results in line with an agreement struck between Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump last September.
The agreement said the two governments “will enter into negotiations…for a Japan-United States trade agreement on goods, as well as on other key areas including services, that can produce early achievements.”
Besides digital trade, Lighthizer did not refer to specific areas in services and other key areas that the United States wants to be included in the trade talks, according to Motegi.
“The U.S. side said Japan and the United States share views on digital trade, and that the two sides could produce results at an early date,” Motegi said.
Motegi said he is considering having another meeting with Lighthizer on the sidelines of a summit between Abe and Trump, possibly on April 26 in the U.S. capital.
Motegi quoted Lighthizer as saying the Trump administration wants to cut the U.S. trade deficit with Japan, and that the administration has a strong interest in increasing access to the Japanese market, especially for agricultural products.
A revised Trans-Pacific Partnership — an 11-member free trade agreement including Japan and farming nations such as Australia and Canada — as well as an FTA between Japan and the European Union have put American farmers and ranchers at a disadvantage.
Motegi said he told Lighthizer that Japan will not reduce tariffs on American farm products beyond levels the country has agreed in other trade pacts such as the revised TPP and Japan-EU FTA.
Motegi also told his U.S. counterpart that a currency provision, which U.S. Treasury Secretary Steven Mnuchin has said must be included in a trade deal with Japan, should be handled by the respective finance ministers.
