U.S. and Japan Continue Talks on Auto Tariffs

21 April 2014 Dashboard Insights Blog

Once again, the United States and Japan failed to reach an agreement on auto tariffs. Tariffs on automobiles are one of the remaining key issues that lie between the two countries in relation to the proposed Trans-Pacific Partnership (TPP).

On April 9th and 10th, U.S. Trade Representative Michael Froman and Japanese Economic and Fiscal Policy Minister Akira Amari met in Tokyo to discuss the TPP deal. Apparently, they had intensive negotiations that extended to nearly 18 hours in just two days. After the meetings, both told reporters that, despite progress, considerable differences still remain.

The two key sticking points are autos and agriculture. Japan wants to eliminate tariffs on automobiles, while the U.S. wants to eliminate or at least substantially reduce tariffs on rice, beef, and pork. The U.S. currently has 2.5 percent tariff on passenger cars and 25 percent tariff on light trucks. Unidentified sources reported that, during the Froman-Amari meeting, the U.S. proposed to eliminate its auto tariffs over a 30-year span but that Japan rejected the proposal.

Reaching an agreement on auto issues isn’t easy, but talks will continue. Both sides hope to reach a basic agreement on the outstanding issues before President Obama visits Tokyo to meet with Japanese Prime Minister Shinzo Abe on April 24th. The Obama-Abe meeting will likely be a milestone for the U.S.-Japan bilateral trade talks – and furthermore, the success of the entire TPP.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services

Insights