Japan and the United States have agreed to industrial and agricultural products for this month's trade talks, Japanese economic revitalization minister, Toshimitsu Motegi, said as the delegations continue meetings for a bilateral agreement.
According to The Mainichi, Motegi confirmed that both sides agreed to focus primarily on goods. The agreement reportedly said Japan and the U.S. "will enter into negotiations...for a Japan-United States trade agreement on goods, as well as other key areas including services, that can produce early achievements."
Motegi did not elaborate on details of the agreement with U.S. Trade Representative, Robert Lighthizer. On the other hand, he said they have concluded which specific topics and segments should be given priority during the two-day talk that commenced on Monday.
In December, the U.S. government said President Donald Trump's administration will pressure the Asian country into lifting tariffs on American agricultural imports. It is also expected that the American delegation will open discussions about currencies.
While Motegi did not provide an update on the agricultural tariff issue, he noted that the matter on the currency should be addressed by the countries' respective finance offices. He added that discussions with Lighthizer will revolve around the agreement previously struck by Trump and Japanese Prime Minister Shinzo Abe last year.
Meanwhile, some analysts noted that bilateral talks between Japan and the U.S. may put the former on the winning side. Trump previously decided to pull the U.S. out of the Trans-Pacific Partnership and this, according to economic experts, could be a burden in its efforts to strike an agreement with Japan.
Some industry experts noted that the United States may suffer from previously threatening to hamper trade with the Japanese market. Honda and Toyota are some of the most popular automakers in the U.S. These firms have opened job posts in American factories.
On the contrary, most American-made vehicles are too large for roads in Japan. This puts the U.S. threat on imports of vehicles to Japan less of a burden for the Japanese delegation going into this week's bilateral talks.
Meanwhile, other economists pointed out that Abe is looking to maintain a strategic partnership with the U.S even if his administration will remain firm on its stance of strengthening Japan's national interests.
Before trade talks with the U.S. resumed, Abe has been working to keep Japan's position with other countries. He has sealed trade agreements with other ally countries, including the European Union, following Trump's exit from the Trans-Pacific Partnership.
Trump is expected to meet Abe later this month to discuss the aspects that Lighthizer and Motegi will find common ground in. The U.S. chief is also expected to meet incoming Japanese Emperor, Crown Prince Naruhito.
