After another recent round of intense negotiations, Japan's Economic Minister Akira Amari and US Trade Representative Michael Froman were said to have made significant progress towards a Trans-Pacific Partnership (TPP) agreement between the two countries, but that more effort will be necessary.

Prior to the meetings, in an interview with The Wall Street Journal, Japanese Prime Minister Shinzo Abe had expressed the hope that an agreement could be found before or during his visit to Washington on April 28 but warned that, while a bilateral deal is "close," the "last hurdle" could be the most difficult.

The TPP discussions between Amari and Froman again concentrated on market access for Japan into the US automobile sector, and for the US in the Japanese agricultural market. However, although the gap between the two sides appears to have narrowed, they ended without a definitive agreement.

In that case, while talks could be at a final stage, and despite little detail being available concerning the latest discussions, both sides still seem to have problems with access to each other's auto markets. In particular, Japan is now looking for the immediate elimination of the remaining US 2.5 percent tariff on auto parts.

With regard to its well-protected and ultra-sensitive agricultural sector, Japan has continued to negotiate hard on its import duties and quotas for such products as rice, wheat, beef, pork, dairy products, sugar, and starch. It was reported that the size of the quota for US rice exports to Japan was an especially difficult topic in the latest talks.

Finally, the Japanese Government has welcomed the introduction into Congress of Trade Promotion Authority legislation that would establish concrete rules for US international trade negotiations. However, it also knows that it will be difficult for that legislation to be finally approved in its present form against strong Congressional opposition.

Source: Tax News

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