Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Japan unsuccessful in lifting auto tariffs early in UK trade deal - media

Published 09/08/2020, 05:08
Updated 09/08/2020, 05:10
© Reuters. FILE PHOTO: Japanese Foreign Minister Toshimitsu Motegi delivers his speech during a press briefing with Indonesia's Foreign Minister Retno Marsudi in Jakarta, Indonesia

© Reuters. FILE PHOTO: Japanese Foreign Minister Toshimitsu Motegi delivers his speech during a press briefing with Indonesia's Foreign Minister Retno Marsudi in Jakarta, Indonesia

TOKYO (Reuters) - Japan and Britain agreed to lift auto tariffs for a post-Brexit trade agreement in 2026 despite Japan's push to lift the tariffs earlier, the Nikkei Asian Review reported on Sunday.

Japanese Foreign Minister Toshimitsu Motegi is currently in negotiations with British Trade Minister Liz Truss in London.

British Trade Minister Lizz Truss said in a statement that they "have reached consensus on the major elements of a deal," and both have announced that they will agree on the principles of a trade deal by the end of August.

However, despite reassurances that the two countries had by and large reached an agreement, auto tariffs and agricultural products have proven to be a sticking point in the negotiations.

Japan had hoped to lift tariffs on auto and auto parts earlier than in the current trade deal between the EU and Japan, which will phase out import tariffs on Japanese vehicles by 2026.

"Japan agreed to phasing auto tariffs on Japanese vehicles out in 2026 in line with the EU trade deal, despite asking to hasten the timing," Nikkei reported on Sunday.

Britain, on the other hand, is hoping to secure better terms on agriculture, Financial Times reporter George Parker tweeted on Friday.

"UK-Japan trade talks close to agreement but @trussliz said by Brits to be holding out on agricultural access," he said, referring to Truss's Twitter handle.

Britain, which left the European Union in January, is seeking to clinch a trade agreement with Japan based on the 2019 EU-Japan agreement by the end of the year, when Britain's no-change transition arrangement with the EU will expire.

© Reuters. FILE PHOTO: Japanese Foreign Minister Toshimitsu Motegi delivers his speech during a press briefing with Indonesia's Foreign Minister Retno Marsudi in Jakarta, Indonesia

The Japanese Trade Ministry and Foreign Ministry did not immediately respond to Reuters' request for comment.

Latest comments

Miss Truss- are you sure a trade deal signed today pre-brexit to materialise in 2026 - doesn’t add up - probably, Japan won’t give UK precedence in trade deals over the 27 EU bloc which is normal and understandable which economically it’s for Japan’s own interest. This obviousiy applieds to all countries you will find the EU bloc for economically it’s for all trading with the bloc more feasible than for one singie country- don’t you think so when being realistic- no country wants to lose a good trade deal with the bloc of 27 member states -logically
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.