President Trump and Japanese Prime Minister Shinzo Abe agreed Wednesday to begin direct trade negotiations, in a move that could reshape two of the world’s largest auto industries and offer American farmers better access to Japanese consumers.

Japan had resisted bilateral talks with the U.S. for nearly two years, preferring that its closest ally return to the 12-nation Trans-Pacific Partnership, a trade deal that Trump quit in one of his first acts as president.

Negotiations will begin soon on a deal that would fall short of the comprehensive free trade agreement that Trump had initially promised, governing goods trade and some services transactions, according to a joint statement by the two governments.

The U.S. and Japan also said they would work together – and with the European Union – to curb unfair trading practices by China.

The U.S. said it agreed to “refrain from taking measures against the spirit” of the joint statement, an indication that Trump will hold off on imposing auto tariffs until the talks run their course.

The president made a similar deal with the European Union in July, agreeing to defer any auto tariffs while talks proceed.

The Japan talks will proceed in two phases: a blitz to reap quick gains, followed by a second set of negotiations on additional, unspecified “trade and investment items,” the statement said.

U.S. automakers have struggled to gain a foothold in Japan. Ford Motor Co. pulled out of the country in 2016 after years of dismal results, citing Japanese import barriers. Last year, the U.S. exported just $2.2 billion worth of autos and auto parts – less than in 2012 – while importing more than $55 billion of Japanese vehicles and components, according to the Commerce Department.


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.