Washington, Oct 7 (AP) President Donald Trump is scheduled to sign a limited trade agreement Monday with Japan, a deal that would win back benefits American farmers lost when Trump pulled out of a broader Asia-Pacific pact his first week in office.

US farmers have been operating at a disadvantage in Japan since Trump withdrew from the Trans-Pacific Partnership agreement, which had been negotiated by the Obama administration.

The other 11 Pacific Rim countries, including big farm producers such as New Zealand and Canada, went ahead without the United States and were enjoying preferential treatment in Japan.

While rewarding American farmers, the new US-Japan mini-deal does not resolve differences over trade in autos.

Trump has said the two countries continue to work on a more comprehensive agreement.

Trump has threatened to impose import taxes on foreign autos, claiming they pose a threat to US national security.

At the UN general assembly, Japanese Prime Minister Shinzo Abe told reporters that Trump had assured him that a previous agreement to spare Japan from new auto tariffs still stood.

But Japanese automakers were disappointed that the United States kept existing auto tariffs at 2.5 per cent.

The limited trade pact also includes market-opening commitments on USD 40 billion worth of digital trade between the two countries.

Trump has long complained by America's large trade deficit with Japan, which came to USD 58 billion last year. Japan is the world's third-biggest economy behind the United States and China.

The president was set to sign the deal at the White House Monday afternoon.

The news might sound familiar. The deal was first announced at the August Group of 7 summit in Biarritz, France.

At the UN gathering last month, the two countries signed an agreement-in-principle. On Monday, Trump was scheduled to sign the final text. (AP)

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