The three things you need to know this week: The U.S. and Japan sign a deal, China Agrees to purchase more U.S. agriculture and Saudi oil production is back online.
US-Japan Trade Deal: The U.S. and Japan announced the first phase of a new trade deal covering agricultural products and digital trade. The agreement will eliminate or lower tariffs for certain U.S. agricultural products and provide preferential U.S.-specific quotas for other agricultural goods. Once the agreement is implemented, over 90% of U.S. food and agricultural products imported into Japan will either be duty free or receive preferential tariff access. A separate agreement on digital trade was also announced that will prohibit imposing customs duties on electronically transmitted digital products such as videos, music, e-books, software and games.
China Agricultural Purchases: China will increase its purchases of U.S. soybeans and pork ahead of high-level trade talks in the U.S. in October. The agreement follows Beijing's decision to lift punitive tariffs on soybeans, which are China's biggest import from the U.S. Earlier, the U.S. agreed to postpone a planned October 1 tariff hike on Chinese imports to October 15.
Saudi Oil Production: Reports indicate Saudi Arabia has restored its oil production capacity to 11.3 million barrels per day following the September 14 attacks on key production facilities. Initially, the Saudis claimed that output would be fully back online by the end of September, but there was skepticism about the speed of recovery. It was thought the repairs could take up to a year, but Aramco has been in emergency talks with contractors, offering premium rates for parts and repair work.