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Car tariffs, continued negotiations between Japan and the United States

2019-09-22T22:10:35.188Z


The negotiations on a new trade agreement between Japan and the United States, which is expected to be concluded later this month, revealed that Japan was making final adjustments in the direction of continuing discussions on the reduction of tariffs on automobile parts that Japan had been seeking. Passenger cars are expected to continue discussions, including parts ...


The negotiations on a new trade agreement between Japan and the United States, which is expected to be concluded later this month, revealed that Japan was making final adjustments in the direction of continuing discussions on the reduction of tariffs on automobile parts that Japan had been seeking. Passenger cars are also expected to continue discussions, and there is a possibility that tariffs will not be reduced early in the automotive field, including parts.

Leaders of Japan and the United States will sign a draft trade agreement at a meeting held in New York on the 25th. If it is approved by the extraordinary Diet in autumn, it will come into effect within the year. According to the officials, tariffs in the automobile sector have been adjusted in a way that will be clearly stated in the document as “to be eliminated after further negotiations”.

Japanese automakers are proceeding with local production in the US, but the export value in 2018 was 4,054.1 billion yen (1,740,000 units). The total amount of exports of automobile parts, which is ¥ 9294 billion, accounts for about 35% of exports to the US and has a strong presence.

The United States agreed to the Trans-Pacific Economic Partnership Agreement (TPP) prior to its withdrawal and eliminated tariffs on passenger cars (2.5%) over 25 years. Over 80% of auto parts (mainly 2.5%) ) Was immediately abolished. Japan has called for a tariff reduction similar to this TPP in this negotiation.

The US-requested beef and pork tariff reductions have been decided to be immediately reduced to the same tax rate as TPP member countries, and there is a risk of a lack of balance if car discussions are prolonged.

Japan has also sought to avoid additional tariffs on Japanese cars that Mr. Trump flickered during the negotiations. To ensure this, the US will not include any additional tariffs or restrictions on export volume during the discussion on abolition of tariffs. However, even if it is realized, there remains a risk that Mr. Trump's compelling reasoning will be used to favor negotiations. (You Noguchi, Ryuichi Kanari)

Source: asahi

All news articles on 2019-09-22

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