Montana's Congressional delegates voice support for U.S. interim trade deal with Japan

After a challenging year in the agricultural market, with agricultural prices greatly effected by the trade war, U.S. farmers saw some relief Wednesday, when President Donald Trump signed an interim trade deal with Japan.

Although many farmers in the region have seen a strong harvest, because of the market prices for wheat and barley, many of them may have been facing a loss this year.

Trump signed the agreement with Japanese Prime Minister Shinzo Abe in New York, while the two were attending the United National General Assembly. The interim trade deal is to lower Japanese tariffs on U.S. farm exports such as beef and pork. It also includes tariff-free digital commerce. The agreement is scheduled to take effect in January 2020, with negotiations on a larger trade deal possibly beginning four months later.

Montana Grain Growers Association said in a press release Wednesday that the trade agreement is a "most welcome deal that will keep grain exports flowing to a very large and crucial market for Montana Farmers."

"This is excellent news for Montana farmers who sell the majority of their wheat to our long-standing customers in Japan," Montana Grain Growers Association President Lyle Benjamin said. "We very much appreciate the diligent efforts of our congressional representatives for pressing the administration on the importance of a trade agreement with Japan. Their work behind the scenes was crucial in achieving this outcome."

The release said that when the tariff agreement is implemented, Japan's effective tariffs on U.S. imports - wheat and barley - will be reduced to the same level Japan has with other countries in the Comprehensive and Progressive Trans-Pacific Partnership, which went into effect last December.

"Without this new agreement, U.S. wheat imports in particular would have become less and less cost competitive to the point that Japan's flour millers would have no other choice than to buy more of the lower cost wheat from our competitors in Canada and Australia," it added.

U.S. Rep. Greg Gianforte, R-Mont., said in a press release that he is pleased with the news

of the trade deal and that it is a bernefit to Montana farmers and ranchers.

"The new trade deal with Japan is a win for Montana farmers and ranchers," Gianforte said. "The deal President Trump struck with Japan ensures Montana's high-quality ag products have access to that critical market. I proudly stood with and advocated for Montana's wheat and barley growers, and I appreciate the administration including in the agreement my request to secure equitable market

access for Montana wheat."

Sen. Jon Tester, D-Mont., who has been highly critical of Trump's trade policy, and last week demanded the Trump Administration to "quit playing games with American Agriculture," said in a press release that Japan plays a critical role in Montana's agricultural industry and he welcomes the news of a trade deal.

"This is welcome news for Montana's farmers and ranchers, who rely on access to foreign markets like Japan to sell their world-class products," Tester said. "Japan is the largest importer of Montana's wheat, and plays a critical role in our state's number one industry. I look forward to seeing the finalized details of the deal, and I hope it means the Trump Administration will see the wisdom of expanding access to foreign markets instead of closing them off.

The release added that the deal opens Japanese markets to about $7 billion in American agricultural goods, including beef, pork, corn and cheese, and in return the U.S. has agreed to cut tariffs on products like soy sauce, persimmons, green tea and other Japanese goods.

  U.S. Sen. Steve Daines' office also released a press release said that Daines has been a proponent of the importance of trade with Japan and other Asian counties and said the agreement with Japan is welcome news to Montana's agricultural community. It adds that once the agreement is implemented, Montana farmers and rancher will be able to compete on a level-playing field with Trans-Pacific Partnership competitors in selling to Japanese markets and the key benefits to Montana are a reduced tariff on products such as frozen bean and pork, provide country-specific quota for wheat and wheat products and a reduced mark-up on imported U.S. wheat and barely.

"Today's announcement is a big win for Montana ag and jobs, and a major step forward for opening critical markets for our producers," Daines said. "It has been a privilege to be the voice of Montana's farmers and ranchers during trade negotiations between the U.S. and Japan. I'm happy to see President Trump and Prime Minister Abe announce they reached a deal that will help level the playing field for Montana farmers and ranchers. I look forward to seeing the final agreement signed in the coming weeks."