In the Japan-US bilateral negotiations on the Trans-Pacific Economic Cooperation Agreement (TPP), more than half of all import tariffs imposed on Japanese auto parts by the United States are expected to be withdrawn immediately after the TPP takes effect. Most of the remaining parts will be withdrawn within 10 years. Including the tariffs on rice that have not been negotiated before, the Japanese and US governments hope to make a final judgment at the ministerial consultations at the end of July.
Japan's exports of auto parts to the United States include about 100 types of tires and seat belts, and about 300 types of screws that can be used in areas other than automobiles. Including related parts and components, Japan’s exports to the United States amount to about 2 trillion yen per year. If the 2.5% tariff is revoked, the tariff reduction will reach about 50 billion yen.
Japan has been asking the United States to immediately revoke tariffs on auto parts as a major export category. In the previous consultations, the two countries determined that the auto parts, such as exhaust pipes, which are less competitive with American companies, are included in the direction of immediate cancellation of tariffs, and parts exempt from customs duties will account for more than half of all categories.
On the other hand, the United States hopes that the tariffs on parts and components required by US companies such as gearboxes and gearboxes will not be revoked for a short period of time, and no compromise has been reached in some areas. Japan hopes to further expand the scope of parts and components for immediate cancellation of tariff targets through a ministerial consultation meeting held in Hawaii in the United States at the end of July.
At present, the United States imposes a 2.5% tariff on vehicles that are made in Japan. In the TPP negotiations, the cancellation of vehicle tariffs will take the longest time. The time required for cancellation will be significantly more than 10 years, and may even reach 20-30 years. Japan has also entered the final adjustment stage in the construction of the trade dispute settlement system.
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