During a bilateral meet on the sidelines of the UN General Assembly here on Wednesday, Trump and Abe signed the agreement they had reached during the G7 summit a month ago in Biarritz, France, reports Efe news.
According to Trump, the pact will open up the Japanese market to about $7 billion worth of US products each year, because Tokyo as committed to eliminating or reducing tariffs on 90 per cent of agricultural goods it imported from America.
Japan will also gradually reduce tariffs on American beef and pork and cheese, as well as eliminate excises on almonds, walnuts, blueberries, currants, corn and broccoli altogether, according to the US foreign trade authorities.
In return, the US country will reduce its tariffs on Japanese agricultural products valued at $40 million in 2018, including certain perennial plants and flowers, green tea, gum and soy sauce.
During the meeting, Abe remarked that this would have a positive impact on the global economy.
Trump expressed hope for a broader deal with Japan in the not-too-distant future.
Although the deal does not cover automobiles, Abe said he had received assurances from Trump that Washington would not impose tariffs on cars.
Both countries are expected to begin a new round of negotiations in April 2020.