Trump seeks limited trade deals with Japan and India

US leader aims to overcome concerns about his trade approach as China fight persists

WASHINGTON • The Trump administration is racing to announce limited trade deals with Japan and India before the end of the month, as US President Donald Trump tries to score some wins amid a protracted trade fight with China.

The "mini-deals" are aimed at helping Mr Trump overcome concerns about his trade approach before the 2020 election and prove to voters that he is delivering on a key promise to negotiate bilateral trade deals in America's favour.

Mr Trump also wants to calm the concerns of struggling farmers, who have been largely cut off from foreign markets like China in retaliation for the President's trade war.

Unlike traditional trade pacts, the agreements Mr Trump's advisers are drafting are likely to be confined to a few sectors or products. In keeping with Mr Trump's more transactional approach to trade, his negotiators have focused on a few key interests while setting the bulk of contentious issues aside.

With Japan, the Trump administration has been pressing for US agricultural products to gain some of the same access to its markets that would have happened under the terms of the Trans-Pacific Partnership. Mr Trump withdrew the US from that agreement within days of taking office.

The administration also wants India to provide more access for farmers to sell products like pork and to reduce tariffs on electronics.

Mr Trump's trade fight with China is also proceeding in fits and starts, and substantial differences remain before a deal can be reached.

Tensions between China and the US have eased somewhat in recent weeks. Dozens of Chinese government officials are expected to arrive in Washington this week for negotiations starting today, paving the way for a meeting of higher-level officials early next month.

"I think there will be a deal maybe soon, maybe before the election or one day after the election," Mr Trump said on Tuesday. "And if it's after the election, it'll be a deal like you've never seen; it'll be the greatest deal ever, and China knows that."

Since Mr Trump withdrew from the Trans-Pacific Partnership, Japan has ratified the agreement with the remaining 10 members, giving products from Australia, New Zealand, Canada and Mexico better access to Japan than US products.

People familiar with the Japan negotiations say the US has secured more access for products like beef, pork, wheat and wine. In return, the US will drop its tariffs for Japanese industrial goods, like machinery. Japan is seeking written assurances that no tariffs will be put on Japanese cars. The Japanese deal would also make advances in digital trade and e-commerce.

Yet, the new deal will not touch on many other areas of trade addressed in the partnership. Instead, issues such as pharmaceuticals, energy and services will be addressed in future talks.

A potential trade agreement with India appears even more limited. India had previously appeared willing to remove some restrictions on US farm products and limit its 20 per cent tariff on imported electronic goods. In return, India is seeking to restore a special trade status for developing countries that Mr Trump revoked in May. That programme had allowed Indian products, including apparel and auto parts, to come into the US duty free.

NYTIMES

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A version of this article appeared in the print edition of The Straits Times on September 19, 2019, with the headline Trump seeks limited trade deals with Japan and India. Subscribe