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). 10. U.S.-Japan Trade Agreement, Appendix I: Japan`s Tariffs and Customs Provisions, I-B-5-1; ustr.gov/sites/default/files/files/agreements/japan/Annex_I_Tariffs_and_Tariff-Related_Provisions_of_Japan.pdf. The U.S.-Japan Trade Agreement (USJTA) came into force on January 1, 2020. In that agreement, Japan committed to grant the United States significant market access by phasing in most tariffs, implementing significant tariff reductions or allowing a certain volume of imports at a lower price. Once the USJTA is fully implemented, nearly 90% of U.S. food and agricultural products imported into Japan will be duty-free or preferential tariff access.
The full text of the agreement and fact sheets are available on the website of the U.S. Trade Representative (USTR). Under President Trump`s leadership, the United States and Japan agreed on early outcomes of negotiations on market access for certain agricultural and industrial products, as well as digital trade. The United States looks forward to continuing negotiations with Japan for a comprehensive agreement that would address the remaining tariff and non-tariff barriers and ensure fairer and more balanced trade. Businesses with Japan and U.S. trade are invited to review the text of the agreements and understand the potential benefits. To this end, emergency measures can be considered by companies: 6. EY Global Tax Alert, USTR grants new exclusions for lists 1, 2 and 3 for products originating in China; The United States and Japan agree on merchandise trade and digital trade from September 27, 2019.