Japan: 'Will Not Accept Trade Agreement Without Resolution on Auto Tariffs'

Prime Minister Shigeru Responds in Parliament

NHK: 'Japan Aims for Agreement by Early July Before General Election Announcement'

The Japanese government has expressed a firm stance that it will not accept any trade agreement with the United States unless the issue of import auto tariffs imposed by the U.S. is resolved.

According to Bloomberg on the 12th (local time), Japanese Prime Minister Shigeru Ishiba responded in parliament to questions from lawmakers about whether the U.S. might push for a provisional agreement excluding auto tariffs, stating this position. He also reiterated that Japan would not sacrifice its agricultural market to protect its auto industry.

Prior to this, Ryosei Akazawa, the chief trade negotiator, also appeared in parliament, stating that Japan would continue to pursue a suspension of all tariff measures imposed by the U.S.

The Japan-U.S. trade negotiations are expected to intensify at the end of this month, and Foreign Minister Akazawa expressed hope to reach some form of agreement by June.

Local Japanese media reported that an agreement might be reached around early July when Japan announces its general election.

Public broadcaster NHK reported that Japan has proposed expanding investments in the U.S. auto sector and cooperation in the shipbuilding field to reach a compromise.

Automobiles are a key industry in the Japanese economy, similar to South Korea. Some analysts estimate that Japan's economy may have contracted in the first quarter even before the 25% auto tariff takes effect. Japan's preliminary first-quarter GDP figures will be announced on the 16th.

Meanwhile, Jamieson Greer, the U.S. Trade Representative, is scheduled to attend the APEC Trade Ministers' Meeting in Jeju, South Korea, on the 15th and 16th of this month. There is also a possibility that trade negotiations with South Korea and Japan may take place during this period.

Guest Reporter Jung-A Kim kja@hankyung.com