JAPAN is seeking lower tariffs for automobiles and steel products amid an ongoing review of the Philippines-Japan Economic Partnership Agreement (PJEPA).

“Already tariffs on most types of goods are reduced. But still there are tariffs on automobiles and steel products… The government of Japan will request the Philippines to reduce tariffs,” Takahiko Shiba, Trade and Commercial Attaché at the Embassy of Japan to the Philippines, told reporters in Manila.

For automobiles, the Japanese official was referring to tariffs on vehicles with a displacement volume not exceeding 3,000 cubic centimeters.

These include sedans, sports cars, station wagons, racing cars, prison vans, ambulances, and all-terrain vehicles, among others.

Mr. Shiba said that the under the free trade agreement between the Association of Southeast Asian Nations with South Korea, the tariff rates for these automobile lines average 5%.

On the other hand, they average around 20% under the PJEPA.

On steel products, Mr. Shiba said the Philippines continues to impose import duties on some steel products.

On the other hand, the Philippines has been seeking greater market access for agricultural goods, particularly tropical fruits such as bananas, mangoes, and pineapples.

Sought for comment on the Philippine wish list, Mr. Shiba said: “I think it will be tough negotiations. Of course, Philippines would like to export many agricultural goods to Japan. On the other hand, Japan would like to introduce a lot of new sectors like e-commerce.”

The PJEPA is the Philippines’ lone bilateral trading agreement which it ratified and officially implemented in 2008. Under the deal, both countries are slated to conduct a general review ten years after the deal took effect. This means the review was supposedly slated in 2016 instead of this year.

Nevertheless, the first round of the PJEPA review started in June, with the second round to take place before the year ends.

“We have to talk in order to organize and strengthen the relationship between the two countries,” Mr. Shiba added.

However, the country also has a multilateral trading agreement with Japan under the ASEAN-Japan Comprehensive Economic Partnership Agreement.

If the Regional Comprehensive Economic Partnership (RCEP) between the 10 ASEAN member-states and six Asia-Pacific states goes ahead, the pact will effectively be the third FTA with Japan.