US President Donald Trump and Japanese Prime Minister Shinzo Abe signed a limited trade deal on Wednesday that cuts tariffs on US farm goods, Japanese machine tools and other products while further staving off the threat of higher US car duties.
During a bilateral meet on the sidelines of the UN General Assembly, Trump and Abe signed the agreement they had reached during the G7 summit a month ago in Biarritz, France, Efe news reported.
Trump said that the first-phase deal would open up Japanese markets to some $7 billion worth of US products annually, cutting Japanese tariffs on American beef, pork wheat and cheese.
According to Trump, the pact will open up the Japanese market to about $7 billion worth of US products each year, because Tokyo as committed to eliminating or reducing tariffs on 90 per cent of agricultural goods it imported from America.
Japan will also gradually reduce tariffs on American beef and pork and cheese, as well as eliminate excises on almonds, walnuts, blueberries, currants, corn and broccoli altogether, according to the US foreign trade authorities.
During the meeting, Abe remarked that this would have a positive impact on the global economy.
Trump expressed hope for a broader deal with Japan in the not-too-distant future.
Although the deal does not cover automobiles, Abe said he had received assurances from Trump that Washington would not impose tariffs on cars.
Both countries are expected to begin a new round of negotiations in April 2020.
(With agencies inputs)