President Donald Trump signed a limited trade agreement on Monday with Japan, a deal that would win back benefits American farmers lost when Trump pulled out of a broader Asia-Pacific pact his first week in office. U.S. farmers have been operating at a disadvantage in Japan since Trump withdrew from the Trans-Pacific Partnership agreement, which had been negotiated by the Obama administration. The other 11 Pacific Rim countries, including big farm producers such as New Zealand and Canada, went ahead without the United States and were enjoying preferential treatment in Japan.
However the new U.S.-Japan mini-deal does not resolve differences over trade in autos. Trump has said the two countries continue to work on a more comprehensive agreement. In addition, Trump has threatened to impose import taxes on foreign autos, claiming they pose a threat to U.S. national security.
The limited trade pact also includes market-opening commitments on $40 billion worth of digital trade between the two countries.
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