US tariff set to vanish swiftly on majority of Japanese autoparts

[kscarbel2]

Nikkei Asian Review / July 23, 2015

More than 50% of Japanese autoparts would be imported to the U.S. without tariffs immediately if the proposed Trans-Pacific Partnership trade pact takes effect.

U.S. and Japanese negotiators appear to have found some common ground in the items considered unlikely to trouble U.S. manufacturers. They also are considering eliminating tariffs on the majority of the remaining types of autoparts within 10 years.

Japan exports to the U.S. about 100 types of autoparts including tires and seat belts. The figure grows to about 300 with the inclusion of screws and other items also used for nonautomotive devices.

Such exports total about 2 trillion yen ($16 billion) a year, so the current tariff of 2.5% represents around 50 billion yen in levies.

But differences remain. The U.S. seeks a longer protection period for transmission, gear box and other items specified by manufacturers, while Japan wants more types of autoparts subject to the swift tariff relief.

Negotiators have agreed to give the longest phaseout period for a 2.5% tariff on fully assembled Japanese automobiles. The period likely will exceed 10 years, possibly reaching 20 to 30.

The two countries are about to finalize the design of a dispute-settlement system for trade issues attributable to Japan.

A ministerial meeting is set for the end of the month in Hawaii, where the two nations aim to settle all lingering concerns including the level of Japan's tariff-free quota for U.S.-grown rice.

[james j neiweem]

Advantage?????japan-China-Korea of course