Japan: CPTPP and EU Agreements May Reduce Demand for U.S. Oilseeds

Japan’s conclusion of a free trade agreement with the European Union (EU) and efforts to conclude the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) are expected to increase market competition for U.S. oilseed and vegetable oil exports to Japan. The two agreements contain tariff concessions for a range of oilseeds and their products. The Japan-EU agreement could enter into force as early as 2019, while CPTPP Member States are currently undertaking domestic procedures to ratify the agreement. In 2017, Japan imported $3 billion in oilseeds, of which 37.7 percent ($1.15 billion) were from the United States, and $1.5 billion in vegetable oil and animal fat products, of which 3.2 percent (approximately $48 million) were from the United States.

Japan: CPTPP and EU Agreements May Reduce Demand for U.S. Oilseeds