Japan plans to propose immediately reducing tariffs on American agricultural products to current levels for members of an 11-nation Pacific free trade agreement, according to sources familiar with the issue.

The measure would level the playing field for American farmers and ranchers who have become less competitive in the Japanese market than their Australian and Canadian counterparts following the enforcement last December of a revised Trans-Pacific Partnership.

For example, to ensure equal conditions between the United States and members of the revised TPP, Japan would apply tariff rates at third-year levels as opposed to first if a Japan-U.S. trade agreement came into force in fiscal year 2020, the sources said.

In return, Japan plans to call for U.S. concessions in bilateral trade agreement negotiations on the automobile sector, such as removing U.S. levies on Japanese automobiles and vehicle parts, the sources said.

Japanese economic revitalization minister Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer will hold talks Thursday in Washington.

The two sides are expected to focus on tariff cuts on the farming and auto sectors. Depending on the trajectory of the discussions, Japan may file the proposal.

In a meeting in late May in Tokyo, Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump agreed to speed up negotiations for a bilateral trade pact.

According to the proposal, Japan would reduce tariffs on American beef immediately to 25.8 percent if a bilateral trade deal took effect in the year starting April 2020.

At present, Japan imposes a 38.5 percent tariff on American beef imports.

Under the revised TPP, formally known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Japan's 38.5 percent tariff on beef imports will be lowered in stages to 9 percent over 16 years.

As part of the process, the rate lowered to 26.6 percent in April and will be further down to 25.8 percent in April 2020, putting American ranchers at a disadvantage with their competitors in CPTPP members Australia, Canada and New Zealand.

Trump withdrew the United States from the TPP in 2017, citing his preference for bilateral trade deals.

Japan has been seeking the elimination of U.S. tariffs on its vehicles, including a 2.5 percent levy on cars and a 25 percent duty on trucks, as agreed to by former President Barack Obama's administration in the TPP.

However, the Trump administration has expressed reluctance to remove auto-related tariffs, though the president appears poised to appease American farmers with increased market access to Japan as part of his 2020 re-election bid.

Source: Japan Times

• Decree to facilitate science, technology activities
• Multinational e-commerce platforms strengthen their foothold in Việt Nam
• Vietnam Pushes for Digital Customs Transformation to Boost Trade
• Standard Chartered Vietnam and the US promote clean energy investments in Việt Nam
• The trend of green industrial parks in Vietnam