Both agreements aim to promote freer trade between the two economies, which together account for about 30% of the world`s gross domestic product. Tokyo also intends to conclude a free trade agreement with London immediately after the UK withdraws from the European Union at the end of January. The two agreements signed on Monday formalized previous agreements between President Trump and Japanese Prime Minister Abe, reached a few weeks ago. The first details of the agreements were discussed in a previous article on this blog at the end of September. The text of the agreements, as well as letters on interactive computer services, alcoholic beverages, beef, rice, security measures, skimmed milk powder and whey, were also published on Monday. 4. www.whitehouse.gov/briefings-statements/joint-statement-united-states-japan/. President Trump, as part of the government`s broader trade agenda, has long criticized the trade imbalance between the United States and Japan, the world`s largest and third-largest economies, respectively. To reduce the U.S. trade deficit by $56.7 billion, President Trump and Japanese Prime Minister Shinzo Abe have jointly announced their intention to open negotiations for a U.S.-Japan trade deal in 2018.
The United States and Japan agreed on merchandise trade and digital trade, with President Trump and Prime Minister Abe announcing the trade agreement on September 25, 2019 at the United Nations General Assembly in New York.6 A separate bilateral pact establishing digital trade rules also came into force on the same day. In addition to trade negotiations with the United States, Japan is working to sign the Comprehensive Regional Economic Partnership Agreement with a total of 16 Asian and Oceanic Economies by the end of the year, which Japan has sought to ratify by subjecting the agreements to its bicameral legislation, the National Parliament. On November 19, 2019, the lower house of Parliament, the House of Representatives, voted on both agreements.