Nevertheless, the agreement could be reviewed on other fronts. The World Trade Organization (WTO) only allows bilateral trade agreements that cover “essentially” the whole of trade, a somewhat vague rule that the agreement does not respect. The logic behind this requirement is that it allows countries to liberalize trade through bilateral agreements without violating the WTO`s most advanced principle. 2. ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/ambassador-lighthizer-lauds-japan. Within four months of its implementation, President Trump and Prime Minister Abe will relocate their efforts for a broader trade deal. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. Nearly three years after his presidency, Trump had only concluded another trade deal that came into effect – a small renegotiation of the free trade agreement between the United States and Korea. Its negotiators also agreed on a new North American Free Trade Agreement (NAFTA), which must be passed by both the Senate and the Democratic-controlled House of Representatives.
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). Japan has requested ratification by submitting the agreements to its bicameral legislation, the National Parliament. On November 19, 2019, the lower house of Parliament, the House of Representatives, voted on both agreements. On 4 December 2019, the Landtag approved the agreements after adoption by the Council, the House of Lords of the Landtag. In the absence of congressional approval in the United States, President Trump signed the agreements himself on December 26, 2019. Both agreements came into force on January 1, 2020. 4. www.whitehouse.gov/briefings-statements/joint-statement-united-states-japan/. U.S.
President Donald J. Trump and Japanese Prime Minister Shinzo Abe recently announced a limited agreement on reducing tariffs and other trade barriers between their countries. Trump hailed the deal as “phenomenal,” but trade experts and some in Congress remain skeptical.