Japan-US trade deal to boost Japan’s economy by 0.8 per cent
Deal is limited but could boost economy over the next ten or twenty years
A limited trade deal reached between Japan and the US is expected to improve Japan’s economy by 0.8 per cent over 10-20 years, the Japanese government has stated.
The deal cuts tariffs on US farm goods, Japanese machine tools and other products while further staving off the threat of higher US car duties. US tariffs on Japanese cars and car parts will be eliminated through further talks but no time frame has been set.
Reuters stated that the deal is expected to contribute about 4 trillion yen (£28.6 billion/$36.84 billion) to Japan’s gross domestic product based on its fiscal year 2018 GDP and will add around 280,000 jobs in the country.
The Japanese government also estimated that Japan’s farm production would drop by about 60 billion-110 billion yen as tariffs on food imports such as beef and pork will be cut.
If the US were to impose 25 per cent tariffs on Japan, it would pay about 1.9421 trillion yen of custom duties, Reuters reported.