Japan, US reach broad agreement on trade deal

Trump spoke to reporters as he met with Japanese Prime Minister Shinzo Abe on the sidelines of the sidelines of the G-7 summit in Biarritz, France.

That said Japan could make no concessions beyond what Tokyo has agreed on other economic partnerships.

The United States will eliminate levies on a wide range of Japanese industrial products, but its tariffs on Japanese automobiles will be left for further negotiations as Trump sees the U.S. trade deficit with Japan as a problem, NHK said.

Abe responded by saying that Japan has a pest problem on "some of the agricultural products, and there is a need for us to buy certain amount", underscoring that the purchase will be done by the Japanese private sector.

Lighthizer said that tariffs on Japanese automobiles will remain once the deal is done.

Lighthizer noted that Japan imports about $14 billion worth of USA agricultural products and said the agreement would open up markets to over $7 billion of such products.

Both sides hope to reach the final agreement by late September, reports said.

"We still have some remaining work that has to be done at the working level", Abe said, referring to the language of the eventual deal.

"If we are to see the entry into force of this trade agreement, I'm quite sure that there will be the enormous positive impact on both the Japanese as well as American economies", Abe said. Japanese trade agreements generally have to be approved by parliament before going into effect.

Both sides agreed that Japan will cut tariffs on United States beef and pork to the TPP levels, but will not set new quotas for butter and skim milk, NHK said, citing unnamed sources. Japan and the US agreed a year ago this would be the maximum possible level.

U.S. Trade Representative Robert Lighthizer, who has been leading the negotiations with his Japanese counterpart said that the agreement consists of three parts; agricultural, industrial and digital but did not give further details. He said beef, pork, wheat, dairy products, wine, and ethanol would all benefit by the deal.

The farming provisions of the deal won some early praise in the USA, with the National Pork Producers Council and Senate Agriculture Committee Chairman Pat Roberts among those welcoming a deal they said would put US agriculture on a level playing field with TPP-member nations. "Frankly, I think what's happening with China helps with respect to Japan".

Trump, earlier in the day, reiterated that he was close to reaching what he described as a "very big deal" with Japan.

"It's a very big transaction, and we've agreed in principle".

Abe and Trump also discussed North Korea, Kyodo News reported, and agreed to cooperate on the issues of the North's nuclear weapons, missiles and abductions of Japanese citizens.