Continued Trade Talks Between the U.S. and Japan Is Good News for Farmers and Ranchers
Dan Celia: As China Marks 70-Year Transformation to Economic Superpower on Oct. 1, U.S. Must Continue to Negotiate with Other Parts of Asia and Quickly Move into the Eurozone
PHILADELPHIA—The Trump administration announced last week that the U.S. and Japan have signed a trade-enhancement deal, which President Donald Trump says would open up Japanese markets to $7 billion worth of American products.
“Japanese tariffs will now be significantly lower or eliminated completely on beef, pork, wheat, cheese, corn, wine and so much more,” Trump said, according to The Wall Street Journal.
Nationally syndicated host and biblical investing authority Dan Celia says this potential trade deal will significantly help America’s farmers and ranchers.
“But U.S. Trade Representative Robert Lighthizer said after the signing ceremony agreement between the two leaders on the sidelines of the United Nations General Assembly that cars, the biggest source of the $67 billion U.S. trade deficit with Japan, were not covered in the announcement,” Celia said. “He remarked that Japan wanted further discussions on this issue. His office characterized the agreement signed by Trump and Japan’s Prime Minister Shinzo Abe as ‘early achievements’ from their negotiations on market access for agriculture, industrial goods and digital trade. The U.S. Trade Representative office also said about 90 percent of U.S. food and agricultural products will receive duty-free or a reduced-tariff access to Japan, but wheat will still be subject to a quota limiting the volume that U.S. can import. However, many of the products gaining new access will still face tariffs that phase out over several years.”
This is a very big step in Asia trade negotiations, Celia added. With Japan being China’s biggest competitor and vice versa, the beginning of these negotiations will be extremely important as the U.S. continues to negotiate with China.
China celebrates its 70-year transformation into an economic superpower on Oct. 1—“just in time for widespread fears that a trade war with the United States will derail that growth and drag the world economy down with it,” CNBC reports. “China overtook Japan as the world’s second-largest economy in 2010, measured in current prices or nominal terms (not accounting for inflation), according to data from the World Bank and the Organisation for Economic Co-operation and Development. It has since remained in that position, second only to the United States,” the business outlet continued.
“Some have predicted that China’s economy will surpass the U.S. by 2030,” Celia said. “China is no developing nation. We must continue to negotiate with other parts of Asia and quickly move into the Eurozone. This will be a huge incentive for China to make a deal with the U.S. I believe, as I’ve been saying for some time, that we need to remain silent about China, allowing them a little more pain before they become ready for real negotiations. In the meantime, the U.S. can continue to diversify its trade relations with other parts of the world. All of this, of course, is making our economy stronger and less dependent upon any one nation.”
Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on more than 650 radio stations and several television networks nationwide.
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