The United States and Japan announced that the two countries have agreed to an initial trade agreement. The agreement will provide U.S. manufacturers with additional market access to America’s third-largest export market. As a result of AFFI’s proactive efforts during the negotiation process, a number of frozen products will be favorably impacted in the Japanese tariff list and will either be duty free immediately upon implementation of the agreement or duty-free in a staged manner over time.
The following frozen products will be duty-free upon implementation:
- Frozen fruits: frozen strawberries, raspberries, blackberries, mulberries, loganberries, currants, and gooseberries whether or not containing added sugar.
- Frozen vegetables: frozen peas, beans, sweet corn, and other mixed, prepared or preserved vegetables.
The below product will be duty-free three years after implementation beginning with a 50 percent tariff cut.
- Frozen Baked potatoes
Products that will be duty-free five years after implementation beginning with approximately a 33 percent tariff cut.
- Frozen Potatoes (whole)
- Frozen Broccoli
- Frozen Mixed vegetables, chiefly consisting of sweet corn
- Frozen Potatoes mashed and other potatoes prepared or preserved
- Frozen Sweet corn, no added sugar
The below frozen processed products will be duty-free 8 years after implementation beginning with approximately a 22 percent tariff cut.
- Frozen Waffles
- Frozen Pizza
Products that will be duty-free 10 years after implementation beginning with approximately an 18 percent tariff cut.
- Frozen Leguminous vegetables prepared or preserved
More information is available here on the fact sheet.
In 2018, Japan imported more than $14.1 billion in U.S. products and has been identified as a major market of opportunity for many U.S. food manufacturing companies. As a result of this agreement, more than 90 percent of all food and agricultural imports into Japan will be duty free or receive reduced tariffs in a staged manner. The timeline for implementation of the trade agreement is however, yet to be determined.
To view AFFI’s comments to the United States Trade Representative regarding the U.S-Japan trade agreement, please click here.