6. EY Global Tax Alert, USTR grants new exclusions for lists 1, 2 and 3 for products originating in China; On September 26, 2018, President Trump and Prime Minister Abe announced that the United States and Japan would negotiate a trade agreement between the United States and Japan. On October 16, 2018, the USTR formally informed Congress that the Trump administration intends to begin negotiations after the necessary internal procedures. Thus began a 90-day consultation period under the Trade Promotion Authority, mandated by Congress, before negotiations began. Public notices on the negotiating objectives of a trade agreement were expected on 26 November 2018 and detailed negotiating targets were published on 21 December 2018. Negotiations began in April 2019. The Digital Trade Agreement is a separate agreement that sets rules in the digital space.15 The content of the Digital Trade Agreement is virtually the same as the provisions of the U.S.-Mexico-Canada agreement (USMCA). Notable provisions include a ban on tariffs on electronically transmitted content (e.g. B software and music) and the recognition of an electronic signature as a legally appropriate authentication tool.
This is important as the World Trade Organization (WTO) electronic transfer moratorium is to be renewed at the 12th Ministerial Conference in June 2020 (see the next issue of EY tradewatch for a corresponding article). Businesses with Japan and U.S. trade are invited to review the text of the agreements and understand the potential benefits. To that end, companies can act immediately: within four months of implementation, President Trump and Prime Minister Abe will move their efforts toward a broader trade agreement. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. DLA Piper has experience in customs legislation and trade agreements. If you have any questions or ask for additional advice, please contact us. 10.
U.S.-Japan Trade Agreement, Appendix I: Japan`s Tariffs and Customs Provisions, I-B-5-1; ustr.gov/sites/default/files/files/agreements/japan/Annex_I_Tariffs_and_Tariff-Related_Provisions_of_Japan.pdf. Under President Trump`s leadership, the United States and Japan agreed on early outcomes of negotiations on market access for certain agricultural and industrial products, as well as digital trade. The United States looks forward to continuing negotiations with Japan for a comprehensive agreement that would address the remaining tariff and non-tariff barriers and ensure fairer and more balanced trade.