Japan considers lower safety requirements for US carmakers - Nikkei

The Japanese government is considering revising national requirements for car safety in preparation for a trade agreement with the administration of US President Donald Trump. This was reported by the business publication Nikkei.

Here's What We Know

Japan's chief negotiator Ryosei Akazawa began tariff consultations with U.S. representatives in Washington last week, and preparations are underway for a second round of talks.

U.S. automakers have long claimed there are non-tariff barriers in the Japanese market. A report released by the Office of the U.S. Trade Representative in March noted that Japan refuses to recognise U.S. safety certifications as equivalent to its own standards. Other obstacles include unique testing procedures and difficulties in establishing distribution and service networks.

According to the Nikkei, the government of Prime Minister Shigeru Ishiba sees the possibility of relaxing certain criteria, particularly rules regarding crash tests. "We have to recognize the difference in traffic conditions," Ishiba said in a Sunday programme on NHK television. Japan has traditionally emphasised pedestrian protection, he said, while the US prioritises passenger safety in car collisions.

Japan is seeking the removal of the 24 per cent duty, temporarily reduced to 10 per cent. In addition, cars, steel and aluminium originating in Japan face a 25 per cent tariff in the US.

Source: Nikkei