According to the "Nihon Keizai Shimbun" news, the EU is prepared to stop collecting tariffs on Japanese auto parts as an exchange condition for the Japanese side to cancel the import tariffs on European foods.
Both trade officials will hold a third round of negotiations in Brussels next week to reach an agreement on economic cooperation. In September of this year, the EU side negotiated with Japan to cancel the tariff negotiations on each other's draft proposal. As a result of the immediate cancellation of tariffs on Japanese auto parts, the European Union asked Japan to stop collecting European food tariffs in eight areas. At present, Japan imposes a tariff of 15% per liter on European liquor, and the cheese tax rate is as high as 30%.
According to the "Nihon Keizai Shimbun", Japanese companies annually export approximately 500 billion yen worth of auto parts to EU countries, or approximately 3.73 billion euros, while the EU imposes import tariffs on these parts in the range of 3 to 4.5%.
During the negotiations, the Japanese side proposed to immediately terminate 80% of the tariff items, while the European side agreed to cancel 90% of the tariff, but it will retain the 10% tax rate for cars and LCD TV's 14% tax rate.
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