“Under the Agreement, the United States will apply a baseline 15-per cent tariff on nearly all Japanese imports entering the United States,” the White House said, adding that the framework is “grounded in principles of reciprocity and our shared national interests.”
The order gives sector-specific treatment to automobiles and auto parts, aerospace products, generic pharmaceuticals, and natural resources not available domestically.
Japan has pledged to invest $550 billion in the United States, which the order called “unlike any other agreement in American history.” The White House said those investments will generate jobs, expand manufacturing and strengthen national security.
The agreement also commits Japan to purchasing US-made commercial aircraft, defence equipment, and billions of dollars’ worth of agricultural goods including rice, corn, soybeans, fertiliser and bioethanol.
Japan has agreed to raise its rice imports under the Minimum Access scheme by 75 per cent, bringing US farm exports to Japan to roughly $8 billion a year.
The deal “levels the playing field for American producers, accounts for American national security needs, expands US exports and investment-driven production, and helps reduce the trade deficit with Japan,” said the executive order.
ALCHEMPro News Desk (DS)
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