In accordance with other bilateral free trade agreements, Schedule II of the trade agreement contains the rules of origin and origin to determine whether a product can benefit from preferential treatment. For the purposes of the trade agreement, a good comes from Japan if it meets one of the following criteria: if the rules are fragmented in all countries, it could hinder digital trade. The Japanese government needs to think carefully and strategically about the rules to be developed for digital commerce, while balancing the interests of consumers and producers. The Japanese government said cabinet ministers had confirmed that the United States would not impose additional 25% tariffs or quantitative restrictions on auto imports from Japan, based on Section 232 of the U.S. Trade Expansion Act. The introduction of additional tariffs or quantitative restrictions on the basis of this law would be a very aggressive measure and could be contrary to WTO agreements. As has already been pointed out (see Trump and Trade Update of September 26, 2019), Japan, as part of this first step of a broader trade agreement, will improve market access for certain U.S. agricultural products, the United States will reduce or eliminate tariffs on imports of certain Japanese industrial products, and both countries will expand e-commerce and allow the free flow of data across borders. In a nutshell, President Donald Trump said, “These two agreements represent a huge victory for our two nations.” He added that the agricultural agreement would remove Japanese tariffs on many U.S. products and that the digital agreement “will ensure that Americans have a level playing field in trade in advanced goods and services.” 10. U.S.-Japan Trade Agreement, Appendix I: Japan`s Tariffs and Customs Provisions, I-B-5-1; ustr.gov/sites/default/files/files/agreements/japan/Annex_I_Tariffs_and_Tariff-Related_Provisions_of_Japan.pdf. The goods trade agreement, signed by the two governments less than six months after talks began in April 2019, calls on Japan to liberalize its agricultural market as it did under the Trans-Pacific Partnership Pact with 11 countries.
The content of these two agreements is compared below. With regard to agricultural and forestry products and fisheries products, a joint declaration a year ago established the need to agree market access for these products within the Framework of the United States. The trade agreement should not exceed the access agreed under Japan`s previous economic partnership agreements. In the United States, there have been strong arguments for Japan to provide better market access than the access agreed under the TPP.