WASHINGTON (Reuters) – The United States and Japan are working on a quid pro quo deal involving agriculture and autos that could be agreed by President Donald Trump and Japanese Prime Minister Shinzo Abe when they meet in New York in September, three industry sources familiar with the discussions said on Tuesday.
An auto industry official said the deal could involve Japan offering U.S. farmers new access to its market in return for Washington reducing tariffs on certain Japanese auto parts. He emphasized the talks remain fluid, however.
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Such a deal would give Abe a win on autos, while helping Trump shore up support among farmers, an important constituency ahead of the 2020 presidential election.
A second source familiar with the discussions said the Trump administration was looking for increased access for U.S. beef and pork products.
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Improved access to the Japanese market would help the United States compete with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
One of Trump’s first acts as president was to pull the United States out of that agreement’s predecessor, which killed the deal.
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Trump and Abe discussed trade in Osaka, Japan, during a Group of 20 meeting last month, but no details of their talks were released. Politico on Tuesday reported some sort of a deal was possible in September.
Although Abe is one of Trump’s closest allies...
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