The recent trade agreement between the European Union and Japan is a threat to American agricultural exports to Japan. Veronica Nigh, an AFBF economist, explained in a recent Newsline (July 11, 2017) that the deal should show the U.S. that other countries are willing and able to strike trade agreements without American involvement.
“We tried to drive that point home when we were talking about the Trans-Pacific Partnership, that it wasn’t a matter of the United States participating or not, rather, other countries basically having a party without us,” Nigh said.
Some American exports like corn and soybeans won’t experience a significant impact from the agreement because the EU doesn’t produce a lot of either. Other American agriculture exports to Japan, including beef, pork, processed foods, wine and cheese, are going to be hit much harder.