Japan mulls raising number of imported cars under simplified screen system in US tariff talks
TOKYO: The government is considering presenting a plan to increase the number of cars imported under a preferential certification system as a possible card to play in tariff negotiations with the United States, according to government sources.
The system, called the 'preferential handling procedure for imported motor vehicles,' or PHP, is designed to promote imports of vehicles by simplifying the screening process of imported cars.
The proposal is expected to be put on the table as US President Donald Trump views safety standards as problematic non-tariff barriers.
The Japanese government is also considering sounding out the United States about cooperation in the field of shipbuilding technology for icebreakers, whose importance is increasing for advancing to the Arctic Circle, the sources said.
The government may present these proposals as a package, together with other proposals to increase imports of US-grown corn and soybeans, in an effort to get the United States to review its tariff measures.
Economic revitalisation minister Ryosei Akazawa will visit the United States as early as Wednesday and present the package in talks with US Treasury Secretary Scott Bessent and other officials.
The PHP system allows exporters to simplify the documentation that is required for the ordinary screening process and be exempt from certain other procedures, including screening that uses sample vehicles.
While the system is beneficial to carmakers as it shortens the inspection period, the number of vehicles eligible under the system is capped at 5,000 per car model per year.
Although the number was previously limited to 2,000, it was raised to 5,000 in 2013 during Japan-US negotiations for the Trans-Pacific Partnership free trade agreement.
The government plans to finalis how much it will raise the number from 5,000 based on negotiations with the United States. However, an idea to double the figure has been floated within the government.
If realised, it will become easier to sell US cars in Japan from the screening standpoint. The Japanese government hopes to appeal to Trump, who is eager to expand exports of American cars. Because the measure can be taken by expanding the existing system, it is expected to be relatively easy to obtain understanding domestically.
The government is also considering Japan-US cooperation on building icebreakers as a proposal that would be of interest to Trump.
Trump is increasingly keen on advancing to the Arctic Circle with an eye on resource development there.
However, the US shipbuilding technology of icebreakers is said to lag behind that of Russia and other countries. If Japan and the United States promote cooperation in this field, it is also expected to benefit Japan.
Additionally, the Japanese government is considering expanding imports of US-grown rice. - The Japan News/ANN
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