If Japan agrees to end import duties on various European food items, the European Union will eliminate tariffs on Japanese auto parts, according to the Nikkei business daily. Each year, about 500 billion yen (3.73 billion euros) of auto parts are exported by Japanese companies to the EU. They get charged about 3-4.5% in tariffs by the EU.
Next week, officials from the two trading partners will have a meeting in Brussels for their third round of bilateral talks to be able to enter an economic partnership deal. Last September, they met to talk about draft proposals on tariff elimination. In exchange for getting rid of its auto parts tariffs right away, the EU is asking for an end or a drop in duties in eight areas such as on wine that is charged at 15% per liter, and cheese, which is charged at 30%.
The Nikkei said that Japan had proposed to end 80% of its tariffs immediately. It was also reported that the EU offered a 90% tariff elimination but except for 10% duty on automobiles and 14% on LCD televisions. [source: Reuters]