Breaking News
0

U.S., Japan eye possible small trade deal by September: sources

Economic IndicatorsJul 17, 2019 01:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By David Shepardson and Andrea Shalal

WASHINGTON (Reuters) - The United States and Japan are working on a trade deal involving agriculture and autos that could be agreed by President Donald Trump and Prime Minister Shinzo Abe when they meet in New York in September, three industry sources familiar with the discussions said on Tuesday.

An auto industry official said the deal could involve Japan offering U.S. farmers new access to its market in return for Washington reducing tariffs on certain Japanese auto parts. But he emphasized the talks remain fluid.

Such a deal would give Abe a win on autos, while helping Trump shore up support among farmers, an important constituency ahead of the 2020 presidential election.

A second source familiar with the discussions said the Trump administration was looking for increased access for U.S. beef and pork products.

Improved access to the Japanese market would help the United States compete with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

One of Trump's first acts as president was to pull the United States out of that agreement's predecessor, which killed the deal.

Trump and Abe discussed trade in Osaka, Japan, during a Group of 20 meeting last month, but no details of their talks were released. Politico on Tuesday reported some sort of a deal was possible in September.

Although Abe is one of Trump's closest allies on the world stage, the president has threatened to impose steep tariffs on car imports from Japan and the European Union to even out what he calls unfair trade imbalances. Abe is eager to see the threat taken off the table.

Trump has repeatedly said he is unhappy with Japan's trade surplus with the United States, which was $67.6 billion in goods in 2018, with nearly two-thirds coming from auto exports, according to U.S. figures.

Trump has threatened to impose 25% tariffs on imported Japanese cars on national security grounds but delayed those as trade talks continue.

The leaders agreed last September to discuss an arrangement that protects Japanese automakers from further tariffs while negotiations are under way.

The deal would not require congressional approval since the U.S. president can eliminate or reduce tariffs on products that have a duty of less than 5% duty, and most auto parts tariffs are roughly 3-6%.

Asked about the possibility of such a deal, a Japanese government official declined to comment but said working level discussions on trade were under way.

The official said no significant progress would come until after July 21 elections for Japan's upper house of parliament.

"We have a mutual understanding that we should find common ground so we can find a final settlement," the official told Reuters.

A source familiar with the Japanese government's position said the idea of a mini-trade deal was "interesting and reasonable", but another source said talks needed to cover "all items, not just auto and agriculture". Both spoke on condition of anonymity.

The U.S. Trade Representative's office had no immediate comment on the possibility of a deal. A U.S. Commerce Department official also declined to comment.

U.S., Japan eye possible small trade deal by September: sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email