According to a report published in Japan’s Nikkei, a broad framework of a trade agreement has been arrived at by the United States and Japan. The report stated that Japan had made concessions on its agricultural sector according to US demands to open up the sector to American companies, but it is not clear whether the US has made conceded to any concessions with respect to the import of Japanese vehicles.

The deal was reached between Japanese Economy Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer on Friday, reported Nikkei. The report claimed without citing any source of information, that Japan agreed to bring down import tariffs on US beef but US tariffs on Japanese auto was maintained.

A meeting between U.S. President Donald Trump and Japanese Prime Minister Shinzo would be used by both the countries to announce the trade deal on Sunday when the two leaders meet on the sidelines of the G7 summit in France.

Shortly before the report was published, Motegi told reporters in Washington that “big progress” had been made between him and Lighthizer. The Japanese minister confirmed that this latest round of talks between the countries would be the last round of negotiations at the ministerial-level and the rest details of the trade agreement would be ironed out by working-level officials.

The Nikkei said that Japan has agreed to reduce import tariffs on US beef to the levels that are applicable for the countries in the Trans-Pacific Partnership (TPP) agreement. The US was pulled out of this agreement by Trump soon after he had assumed office of the US President even though his predecessor Barack Obama was instrumental in drafting creating and drafting the multinational trade pact.

In return for the reduction of tariffs on US beef by Japan, the US would not be reducing the 2.5 per cent import tariff that is currently applicable on Japanese autos and auto parts, the report said. However the two countries would be holding separate negotiations on this issue in the near future, it added. The report further added that the US was “moving in the direction” of eliminating import tariffs on some of the 400 types of Japanese car parts that is being demanded by Japan.

The Nikkei said that if the two countries can finalize the trade deal, it would be signed by Trump and Abe may in late September.

“I think how we proceed the talks from now on, and the time schedule, will be announced at the summit meeting scheduled in Biarritz,” Motegi said. The a review of the progress that was made at the ministerial meetings would be made by Abe and Trump and both the leaders would decide on the future progress of the deal, he said.

“We have been making efforts to narrow gaps,” Motegi said. “We negotiated to protect Japan’s position, our position on agriculture,” he added.

Earlier, Tokyo had said that Japan would be willing to reduce tariff to the levels of the TTP agreement but not below that.

(Adapted from EuroNews.com)

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