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US reaches initial trade deal with Japan–Trump

US reaches initial trade deal with Japan–Trump

Mubasher: President Donald Trump told Congress that the US reached a provisional agreement that would reduce certain tariffs and set the terms of digital trade, according to the Wall Street Journal (WSJ).

The announcement came after President Trump and Japanese Prime Minister Shinzo Abe previously said last August during a Group of 7 (G7) Summit in France that they agreed in principle to lower duties on agricultural and industrial products.

Moreover, both sides earlier announced that the deal will be  signed this month at the United Nations General Assembly in New York.

Washington and Tokyo kept the scope of the negotiations limited to avoid the need for Congress to vote the deal, the WSJ said.

That said, Trump hinted the possibility of reaching a “comprehensive trade agreement” in a congressional letter, noting that the White House would continue to work with Congress on future talks.

Such a deal is set to support US farmers to better compete in the Japanese market, after being disadvantaged since Trump withdrew from the 12-nation Trans-Pacific Partnership at the beginning of his tenure.