Japan Offers 75 Percent Tariff Elimination For TPP

Japan formally offered 75 percent of its goods for tariff liberalization in the first year in negotiations for the Trans-Pacific Partnership free trade pact on Saturday, a source close to the negotiations said.

Japan made its offer as the TPP chief negotiators, meeting in Washington, agreed to set Oct. 17 as the date for all 12 countries to exchange offers on all goods with the aim of concluding a deal by the end of this year.

Other TPP countries also formally made their offers, with different countries offering different levels, on Saturday.

Japan’s tariffs on the remaining 25 percent of goods are expected to be removed within a period of not more than 10 years, based on a prevailing view among the TPP members that the tariffs for goods not offered for elimination in the first year should be eliminated within this time frame, which they call the “phase-out” period, the source said.

Some countries have requested a period of 14 years or even 17 years, but this is expected to be fiercely resisted by other TPP members, according to the source.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza