Trans-Pacific Partnership fact sheet Japan

US Secretary Vilsack arrived in Japan to meet with agricultural counterparts. The United States recently concluded negotiations on the Trans-Pacific Partnership (TPP) with Japan and 10 other nations. Countries in the Trans-Pacific Partnership currently account for up to 42 percent of all U.S. agricultural exports, totaling $63 billion. Thanks to this agreement and its removal of trade barriers, American agricultural exports to the region are poised to expand even further.

Japan as a market
Japan is already an important market for U.S. agricultural products. In 2014, Japan ranked as our fifth largest market (behind China, Canada, Mexico and the European Union) accounting for over $13 billion in U.S. agricultural exports. With a population of 127 million, high per capita income, an affinity for U.S. products, and a well-developed marketing infrastructure, Japan is an attractive market for U.S. exporters. The total food and drink market in Japan is valued at over $650 billion.

Reducing tariffs in Japan has been a long-held U.S. trade policy objective. Japan's average tariff on agricultural products is 14 percent. (For comparison, the average U.S. agriculture tariff is 5 percent.) Japan's average hides significant tariff peaks: for many products Japanese tariffs exceed 100 percent and significantly restrict trade.

TPP
Under the Trans-Pacific Partnership (TPP) agreement, most agricultural tariffs in Japan will be eliminated. Tariff phase-outs vary by product: some tariffs will be eliminated immediately when the agreement comes into force, others will be phased out over a period of years. President Obama has notified the U.S. Congress of his intention to sign the TPP agreement after the legal text has been thoroughly reviewed and approved by each TPP country. The agreement will be eligible for a Congressional vote, under provisions of Trade Promotion Authority, in 2016.

Read more: USDA

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