BEIJING (dpa-AFX) - The United States and Japan signed two new agreements - on agricultural exports and digital trade - with a view to improving trade relationship between the two allies.
President Donald Trump termed it as 'a huge victory for America's farmers, ranchers, and growers,' as they will have expanded access to a fairer market to export their products.
'They will create countless jobs, expand investment and commerce, reduce our trade deficit very substantially, promote fairness and reciprocity, and unlock the vast opportunities for growth', Trump told reporters at the White House signing ceremony.
The two agreement signed at the White House were the new U.S.-Japan Trade Agreement and the U.S.-Japan Digital Trade Agreement.
In the ceremony, also attended by Japanese Prime Minister Shinzo Abe, U.S. Trade Ambassador Robert Lighthizer and Japanese Ambassador to the U.S. Shinsuke Sugiyama inked the agreements.
Commerce Secretary Wilbur Ross said Japan agreed to eliminate or cut tariffs on approximately $7.2 billion worth of American agricultural products it imports, and increase fair and reciprocal trade between the two countries.
Under the deal, Japan will reduce tariffs stage- by-stage for more than $2 billion worth of U.S. beef and pork imported to that country.
American poultry, wheat, cheese, wine and ethanol also will benefit as Japan will eliminate or significantly lower their tariffs.
When this agreement is implemented, more than 90 percent of United States agricultural imports into Japan will be duty free or receive preferential tariff access.
Japan is the United States' third largest agricultural export market and accounted for $14.1 billion in food and agricultural exports in 2018.
The Digital Trade deal will boost the digital trade between the United States and Japan, which is currently worth $40 billion.
The deal with Japan, the world's third largest economy, comes at a time the Trump administration's two other key trade deals are stalled.
Trade talks with China are scheduled to resume Thursday, while the United States-Mexico-Canada Agreement is not yet ratified by the Congress.
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