Washington DC, 14 April 2023 (TDI): In anticipation of her upcoming visit to Tokyo, Japan, as the United States Trade Representative (USTR) on April 19-20, 2023, Ambassador Katherine Tai has highlighted some of the significant accomplishments that the two countries have achieved in strengthening their trade relationship.
The US and Japan have a longstanding and important economic partnership, and in recent years, this partnership has only grown stronger.
Since the formation of the US-Japan Partnership on Trade in November 2021, the two countries have delivered numerous wins for workers, small businesses, and producers on both sides of the Pacific.
US, Japan bilateral trade relationship
According to the US Department of Commerce, US goods and services exports to Japan supported approximately 444,000 jobs in 2021. Japan is currently the US fourth-largest goods trading partner, with total two-way trade valued at nearly $230 billion in 2022.
One of the most significant accomplishments has been a historic bilateral agreement to boost US beef exports to Japan.
In March 2022, USTR and United States Trade and Development Agency (USDA) announced that the US and Japan reached an agreement to increase the beef safeguard trigger level under the US-Japan Trade Agreement.
This agreement allows US exporters to meet Japan’s growing demand for high-quality beef, boosting an already-vibrant agricultural export strategy. The agreement was signed on June 2, 2022, and entered into force on January 1, 2023.
In addition to this agreement, the US and Japan have signed a Memorandum of Cooperation (MOC) to launch the Task Force on the Promotion of Human Rights and International Labor Standards in Supply Chains.
This task force operates under the US-Japan Partnership on Trade and includes interagency representatives from across the US government as both countries work together to eliminate forced labor from global supply chains.
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Moreover, in March 2023, the US and Japan signed a critical minerals agreement to diversify key supply chains and promote the adoption of electric vehicle battery technologies.
This agreement will strengthen and diversify critical minerals supply chains, while advancing robust labor and environmental standards.
Finally, following extensive engagement by USTR, USDA, and US Embassy Tokyo, the Japanese Government published a new biofuels policy in March 2023 that will enable the US to capture up to 100 percent of Japan’s on-road ethanol market.
This policy will increase exports of US ethanol by over 80 million gallons, representing approximately $150-200 million worth of additional exports annually.
These accomplishments demonstrate the US and Japan’s strong commitment to strengthening their economic partnership and promoting fair trade practices.
In a nutshell, Ambassador Tai’s upcoming trip to Tokyo will provide an opportunity to build on these achievements and further enhance the bilateral relationship.
