Japan Trade Deal Hits Snag

Japan Trade Deal Hits Snag

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Japan wants a pledge on auto tariffs in its deal with the U.S. and it could delay this week's expected trade deal. Reuters cites anonymous sources who say negotiators are still working things out. But they don't expect the agreement will include changes to auto trade.

Previously, the New York Times reported Japan requested a clause that would cancel any trade benefits if President Donald Trump puts auto tariffs on Japan. They say without assurances on auto the signing of a limited deal could move to a later date.

Some lawmakers worry an agreement with Japan won't include enough benefits for dairy producers. According to Politico, 5 House Democrats sent a letter to Trade Representative Robert Lighthizer saying the deal lacks protections for milk producers and would leave the sector at a disadvantage to export competitors.

While dairy wants more out of the limited agreement pork producers are optimistic about the prospect. One Minnesota industry rep just got back from a trade mission in Japan and tell us what a deal would mean for U.S. farmers. He said the highlight was speaking with 300 pork buyers and hearing how excited they are about a U.S. and Japan trade agreement.

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