With Trans-Pacific Partnership talks at a crucial point, Japan plans to offer immediate duty-free entry for 50,000 tonnes of U.S. rice, gradually rising to 70,000 tonnes, says Nikkei. “Whether the propose will be enough to break down U.S. resistance is uncertain, given that American rice producers want Japan to open its doors wider.” Negotiators failed to agree on the 12-nation trade pact in Hawaii in late July due to disagreements over auto parts, dairy trade and pharmaceuticals. Japan, Mexico, Canada and the United States were to meet on auto tariffs this week.
Chief negotiators for the 12 TPP nations are to meet in Atlanta over next weekend, with trade ministers to join them on Sept. 30 for a possible push to wrap up the long-running talks. “The chances of a deal even before Canadian voters go to the polls Oct. 19 have soared on news that the United States is playing host to what it hopes will be the final round of the TPP talks in Atlanta at the end of September,” said the Toronto Globe and Mail, referring to the parliamentary elections. Dairy supports and auto industry jobs are major issues in Canada.
If agricultural discussions are joined, Japan would propose keeping its current tariff on imported rice of $2.82 per kg, said Nikkei. The tonnage eligible for duty-free entry would rise by 2,000 tonnes annually from the fourth year of an agreement.
“Talks have effectively wrapped up” on key areas that include beef, pork and wheat, said the news agency. The beef tariff of 38.5 percent would drop to 27.5 percent when TPP takes effect, then to 15 percent after a decade and 9 percent after 15 years. For pork, the tariff on lower-cost cuts, now 482 yen per kilogram would fall gradually to 50 yen over a decade, while the tariff on higher-quality cuts, now 4.3 percent, would drop immediately to 2.2 percent and then be eliminated in a decade, said Nikkei. Japan would keep its tariff on wheat but the government markup on imported wheat sold wholesale would be cut by 45 percent.
In addition, Japan is offering low-tariff entry for dairy products equivalent to 70,000 tonnes of raw milk, to be shared by the United States, New Zealand and Australia. Japan wants the United States to remove its tariff on many auto parts, said Nikkei.