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Expert says there are wins and losses in US-Japan trade deal

An expert on Asian Economics says the US-Japan trade agreement did some things well, but, failed in some other areas.

Matthew Goodman, with Washington, DC-based Center for Strategic and International Studies, told the House Ways and Means Committee on Wednesday the trade agreement has three wins – including a big one for US ag.  “On the plus side, the main agreement levels the playing field for many agricultural products in Japan,” he says.  “Which lost ground to Australia, Canada, and others when tariff cuts started to take place under CP-TPP.”

He says there are also wins in the digital space that protects e-commerce and increases shared data between the two countries.  The deal also allows the US and Japan to work together in navigating a global economy where China is becoming more powerful.

Goodman says there are shortcomings to the trade deal.  He says it fails to maximize the potential of the US-Japan economic relationship and leaves a lot of unresolved issues on the table.  “Including agricultural concessions that Japan made in TPP and an array of other longstanding trade issues between the US and Japan,” he says.  “Notably n the automotive sector.”

He says there are also concerns that the mini-deal doesn’t follow Congress’ grant for Trade Promotion Authority and also doesn’t meet the World Trade Organization’s requirements for trade deals.