FAS

EU-Japan Trade Agreement Leaves US Out, & More from CRS

02.13.19 | 2 min read | Text by Steven Aftergood

A new free trade agreement (FTA) between the European Union and Japan places the US at a disadvantage, at least temporarily, the Congressional Research Service said. The new agreement entered into force this month.

The two trading partners negotiated what Japan called the “world’s largest, free, industrialized economic zone” without the US partly in response to the Trump Administration’s combative trade policy and its withdrawal from existing trade negotiations.

“The EU and Japan have expressed concerns over recent U.S. tariffs imposed on their products and the perceived waning in U.S. support for the multilateral trading system,” according to a new CRS brief.

“In the absence of a U.S. FTA with either major economy, certain U.S. industries could face competitive disadvantages or lost market share. . . as the EU and Japan enjoy preferential access to each other’s markets,” CRS said.

As the new agreement is implemented, “the United States will be under increased stakeholders’ pressure to secure comparable access to these important markets,” the CRS report said. See EU-Japan FTA: Implications for U.S. Trade PolicyCRS In Focus, February 7, 2019.

Other noteworthy new publications from the Congressional Research Service include the following.

A Brief Comparison of Two Climate Change Mitigation Approaches: Cap-and-Trade and Carbon Tax (or Fee)CRS In Focus, February 12, 2019

Mail and Wire Fraud: A Brief Overview of Federal Criminal Law, updated February 11, 2019

Electrification May Disrupt the Automotive Supply ChainCRS In Focus, February 8, 2019

A Code of Conduct for the Supreme Court? Legal Questions and ConsiderationsCRS Legal Sidebar, February 6, 2019

Science and Technology Issues in the 116th Congress, February 6, 2019

The World Oil Market and U.S. Policy: Background and Select Issues for Congress, updated February 4, 2019

Venezuela Oil Sector Sanctions: Market and Trade ImpactsCRS Insight, updated February 11, 2019

The Committee on Foreign Investment in the United StatesCRS In Focus, updated February 5, 2019

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