President Trump is hoping to sign a limited bilateral trade deal with Japan when he’s face-to-face with Prime Minister Shinzo Abe on Wednesday at the U.N General Assembly.  But that could be in question.  Japanese officials are pushing for a provision that the U.S. won’t like.

 

Politico said Japan wants a provision in the agreement that would allow them to “blow up the agreement” and slap retaliatory tariffs on U.S. farm goods if President Trump moves forward with tariffs on automobiles from Japan.

 

Multiple sources who are familiar with the negotiations tell Politico that the request is putting a speed bump in the final stages of the talks.  Negotiators are looking to give Japan a full exemption from Trump’s tariff threats.  However, Japanese officials are said to “remain cautious” about reassurances from D.C.

 

This pact with Japan is a big priority for U.S. agriculture. Farm exporters say they’re losing market share to competitors like Australia, Canada, and the European Union. Competitors continue to benefit from greater access to the lucrative Japanese market.

 

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