Question

what good Japan and US trade and what is developed country's tariff policy on this good and how this impacts the business sector in developing country producing that good ?

Answer 1

Japan and the United States engaged with a trade agreement in the year 2019. The agreement was in connection with certain agricultural and indatrial goods. The real intension behind both of these developed countries to establish a wide apread free trade relationship among each other. Perinnial plants and cut flowers, persommons, green tea, chewing gum and soya sauce are the products comes under agriculture category for that US agreedto provide tariff elimination or reduction.

US also agreed to provide eelimaination or reduction in certain industrial products like machine tools, fasteners, steam turbiners, bicycles, bicycle parts, musical instruments, etc. Inment order to get preferential treatment it is very important that, a good must be originted and meet all the requirements of US - Japan agreemment.

The United States has been Japan's largest economic partner. Japan also maintained import relationship with US which included raw materials and manufacured goods.  

The trade policy of Japan gives equal importance to both imports and exports. to them import is very much important for the growth and development of a nation. At the same time it is very much to important to generate. exports too inorder to pay for the imports. The trade policy adopted by Japan is a gradual trade liberalization policy by easing import quotas. They even agreed to reduce tariff rates and there by freeing transactions in foreign exchange.

Considering as a processing nation, to give highest priority to exports is a part of Japan's prestige issue. In order to promote exports Japan's first step was to develop world class industries that can substitute for imports in the initial stage and then compete in the international markets. They also introduced incentives for firms for export. These inentives is a combination of tax relief and government assistance to build export industries.  

In short by providing incentives it could attract more countries which are industrially backward, and at the same time those countries could access manufactred Japanese goods with certin amount of tax relief.