Businesses with Japan and U.S. trade are invited to review the text of the agreements and understand the potential benefits. To this end, companies can consider immediate measures: in accordance with other bilateral free trade agreements, Schedule II of the trade agreement contains the rules of origin and origin to determine whether a product can benefit from preferential treatment. For the purposes of the trade agreement, a measure comes from Japan if it meets one of the following criteria: within four months of its implementation, President Trump and Prime Minister Abe will transfer their efforts to a broader trade agreement. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. The Digital Trade Agreement is a separate agreement that sets rules in the digital space.15 The content of the Digital Trade Agreement is virtually the same as the provisions of the U.S.-Mexico-Canada agreement (USMCA). Notable provisions include a ban on tariffs on electronically transmitted content (e.g. B software and music) and the recognition of an electronic signature as a legally appropriate authentication tool. This is important as the World Trade Organization (WTO) electronic transfer moratorium is to be renewed at the 12th Ministerial Conference in June 2020 (see the next issue of EY tradewatch for a corresponding article). 9. www.whitehouse.gov/briefings-statements/president-donald-j-trump-secured-tremendous-victory-american-farmers-businesses-new-japan-trade-agreements/.
On the same day, a separate bilateral pact for the establishment of digital trade rules also came into force. Tokyo also intends to conclude a free trade agreement with London immediately after the UK withdraws from the European Union at the end of January. Both agreements aim to promote freer trade between the two economies, which together account for about 30% of the world`s gross domestic product. The U.S.-Japan Digital Trade Agreement is the U.S.-Mexico-Canada (USMCA) agreement as the most comprehensive and standard trade agreement to combat digital trade barriers ever negotiated. This agreement will help boost economic prosperity, promote fairer and more balanced trade, and ensure that common rules support businesses in key sectors where both countries are world leaders in innovation. Japan has requested ratification by submitting the agreements to its bicameral legislation, the National Parliament. On November 19, 2019, the lower house of Parliament, the House of Representatives, voted on both agreements. On 4 December 2019, the Landtag approved the agreements after adoption by the Council, the House of Lords of the Landtag.