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https://www.japantimes.co.jp/news/2019/08/24/business/economy-business/japan-hints-reaching-deal-trade-talks-u-s-announcement-expected-g7-meeting/
Japan, U.S. agree to broad outlines of trade deal
KYODO, BLOOMBERG
AUG 24, 2019
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WASHINGTON/TOKYO – Japan and the United States have agreed to the broad outlines of a trade agreement, Japan’s top trade negotiator, Toshimitsu Motegi, suggested Friday, as the two countries work to seal a deal by the end of September.
“We’ve been able to see major progress,” Motegi told reporters in Washington following a three-day meeting with U.S. Trade Representative Robert Lighthizer. Motegi also said gaps no longer exist in their views, apparently referring to tariff cuts in key sectors such as beef and automobiles. He did not provide further details.
“These ministerial talks will probably be the last (toward a trade deal),” Motegi said.
The outcome of the talks will be endorsed by Prime Minister Shinzo Abe and U.S. President Donald Trump when they meet on the sidelines of the Group of Seven summit, beginning Saturday in France, and an announcement will be made then, according to Motegi.
Abe and Trump are expected to announce that they plan to strike a final deal in September, according to sources familiar with the matter. Japan will lower tariffs on U.S. beef and pork to the same levels as those of Trans-Pacific Partnership members, the Nikkei daily reported Saturday without citing sources.
The U.S. will keep its 2.5 percent tariff on Japanese automobiles, rather than raise it as Trump had threatened, while Japan’s tariffs on imported beef will be lowered gradually to 9 percent from 38.5 percent, the Nikkei reported.
Japan is seeking to stay in Trump’s good graces to avoid costly tariffs and retain positive relations with an ally that ensures its security against the likes of China and North Korea. Japan is also counting on U.S. support as its diplomatic spat with South Korea intensifies.
Trump, who threatened to raise tariffs on the approximately $50 billion worth of cars and auto parts Japan exports to the U.S. annually, had hinted that there might be a dealin AUgust.