"Japan May Propose Non-Tariff Barrier Improvement Plan as Early as Next Week...Possibility of Including Rice"

Chief Cabinet Secretary Does Not Deny

Japan in Cautious Mode Ahead of Elections

The Japanese government, which has entered into tariff negotiations with the United States, is expected to propose a non-tariff barrier improvement plan at the Japan-U.S. ministerial meeting as early as next week.

On the 22nd, foreign media such as the Mainichi Shimbun reported, citing Japanese government officials, that Prime Minister Shigeru Ishiba instructed the consideration of a countermeasure reflecting U.S. demands, and the Japanese government plans to prepare a countermeasure as soon as this week if possible. The newspaper particularly noted that the plan to expand rice imports is being considered.

The two countries agreed to hold a second negotiation within this month during the first tariff negotiations held on the 16th (local time) in Washington, D.C., USA. It is known that the U.S. side raised complaints about automobile safety standards and rice imports during the first negotiation and demanded the expansion of agricultural imports.

The Yomiuri Shimbun also reported, citing government officials, that the Japanese government is considering expanding the Minimum Market Access (MMA) for a certain amount of rice imports. However, the newspaper added that they plan to approach cautiously due to concerns about backlash from farmers ahead of the House of Councillors (Upper House) election expected in July.

Chief Cabinet Secretary Yoshimasa Hayashi did not deny the question about expanding rice imports at a press conference this morning.

In this regard, the Nihon Keizai Shimbun (Nikkei) analyzed that the House of Councillors election, which is likely to be held on July 20 according to regulations, could be a variable in the tariff negotiations. This is because the 90-day grace period for mutual tariffs by the U.S. ends on July 9, and they cannot help but consider the election impact depending on the negotiation results.

The Japanese government also has a history of dragging out the Japan-U.S. trade negotiations during Trump's first term and only reaching a final agreement after the House of Councillors election. However, in this tariff negotiation, whether to extend the 90-day grace period depends on the U.S.

Reporter Park Surim, Hankyung.com paksr365@hankyung.com