On Aug. 25, U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe announced an agreement in principle for a trade deal to be signed in September. While many of the details remain unknown, under the reported framework, Trump noted that Japan will make unspecified large purchases of U.S. wheat and corn.
Trump is looking for victories, symbolic as they may be, for U.S. agricultural producers beleaguered by the setbacks born of the U.S.-China trade war. While much of the U.S. CPTPP-level access will be gradually rolled out over the coming years, near-term purchases by Japan can nonetheless provide quick relief to U.S. agriculture. The U.S. soybean industry has received the most attention with respect to the loss of the Chinese market. But while Japan cannot plug the soy gap left by China, it can help alleviate U.S. corn and wheat producers who are struggling as well. ...
