US-Japan trade deal: PM Ishiba hails ‘win-win' agreement, warns implementation challenges — Here's what he said
'Some say that carrying the trade deal out is harder than agreeing on it. I humbly seek your continued support on this,' Bloomberg quoted Ishiba's statement in the parliament on Monday.
Speaking on the extra budget allocation, Ishiba said, 'We will compile one if necessary, taking into account discussions with other parties.'
Japan's chief trade negotiator, Ryosei Akazawa, acknowledged the criticism about the lack of a written record during the parliament session.
'It's my understanding having something on paper would be helpful,' Akazawa said. He also mentioned that there is no written documentation regarding Washington's agreements with the EU and South Korea.
The comments highlight the significant uncertainties surrounding the numerous global trade agreements even after a deadline for higher tariffs was reached on 1 August, the report stated.
Following a setback in the upper house election last month, Ishiba, facing pressure, has committed to remaining as premier to guarantee the full implementation of the trade deal. Shortly after the election, Ishiba achieved a surprising trade agreement that resulted in relatively better outcomes for Japan compared to other countries.
Last month, President Donald Trump announced a 'massive' agreement with Japan, including $550 billion of Japanese investments in the United States.
Washington agreed to implement a 15 per cent flat rate levy on imports from Japan, which is lower than the previously threatened 25 per cent.
In a post on the Truth Social platform, Trump wrote, 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits."
He added, 'this Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things.'
However, the future of auto tariffs remains uncertain. The car tariffs, now set at 27.5 per cent with an earlier 2.5 per cent rate included, have significantly impacted the Japanese economy, which relies heavily on the automotive sector as its largest export to the US and contributes about 10 per cent to the country's GDP.
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