Japan has agreed to phase out tariffs on U.S. wine imports as part of a bilateral trade deal expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday.
Japan will eliminate the tariffs on U.S. wine within five to seven years after the trade agreement goes into effect, the Nikkei reported without giving its sources.
Japan taxes imported wine at a rate of 15% or 125 yen ($1.16) per liter, whichever is cheaper, according to the Nikkei. The elimination of the tariff could cut the cost of U.S. wine by about 13% for wine distributors, the Nikkei said.
The trade agreement between the United States and Japan, which is expected to be signed on the sidelines of the U.N. General Assembly meeting, is also expected to gradually lower tariffs on U.S. beef imports to 9% in 2033 from 38.5% now, the Nikkei said.
Officials from Japan’s trade ministry were not immediately available for comment.
Last month, the United States and Japan agreed in principle on the core elements of a free-trade deal that would cool a trade dispute between the allies.
The United States is also trying to de-escalate its year-long trade war with China.
Chinese trade deputies are expected to meet their U.S. counterparts in Washington before minister-level meetings in early October in the U.S. capital.
Japan is the loudest voice pushing for free trade and open markets and slamming others for being “protectionist.” So how come it takes harsh, wrenching pressure from a foreign government to get Japan to remove a tariff on a product whose domestic industry that is tiny and uncompetitive?
JeffLeeToday 09:35 am JST
So how come it takes harsh, wrenching pressure from a foreign government to get Japan to remove a tariff on a product whose domestic industry that is tiny and uncompetitive?
Because those same, ‘harsh, pressuring foreign governments’ tax certain Japanese goods in exactly the same way for their uncompetitive industries. This is just an example of ‘non-core’ industries being used to cut trade deals with lots of feel good factor on the US side.
Winning! This is a win-win.
This is a win for me, definitely!
Not a big deal. It’s 125 yen off a bottle of wine, which is insignificant unless you drink a lot of very cheap wine. And US wines are rather overpriced to begin with these days.
Like Hillclimber said, it’s just a bargaining chip for Japan. The Americans can go home and tell their news networks to say they got something, and Japan got some easy credits.
Next month sales tax on alcohol will be 10%. I rarely buy American wine not that’s here’s anything wrong with it. I’ve been buying my wines on Amazon. No sales tax.
USA has greatly encouraged global trade with No or very low tariffs while there is little reciprocation globally. This has been the engine of China’s miracle growth. US low on saving but big on buying products. Now US seeks some ability to sell in demand products to these nations. If you think Japan has given equal share then look around as it’s so rare to see a US made auto but in USA over 25% autos are Japanese cars. And YES they are the most reliable cars in the world but USA makes some good ones too.
Japan will eliminate the tariffs on U.S. wine within five to seven years after the trade agreement goes into effect, the Nikkei reported without giving its sources.
Why within five to seven years? Why not with immediate effect?
The ripped-off Japanese consumer has waited long enough for reasonably price, high quality, red wine from the USA.
Not a big deal. Cars , thats a big deal.
Hi Tara, what is the big deal with cars?