The US and Japan are aiming at a free trade agreement (FTA). The US will seek comprehensive duty-free treatment for textile and apparel products, and other industrial goods. It will also aim at ensuring Japan avoids manipulating exchange rates to prevent an effective balance of payments adjustment or to gain an unfair competitive advantage and wants the agreement to have a mechanism to ensure transparency and take appropriate action if Japan negotiates a FTA with a non-market country.

The objectives also include strengthening procedures and creating new ones to address antidumping and countervailing duty evasion. The US goal is to improve trade balance and reduce the trade deficit with Japan, increase transparency in import and export licensing procedures, and discipline import and export monopolies to prevent trade distortions.

In the customs, the US wants to increase regulatory transparency and ensure more expedience in releasing shipments after determining compliance with applicable laws and regulations. This area would include streamlined and expedited customs treatment for express delivery shipments and simplified customs procedures for low-value goods, which would facilitate cross-border e-commerce.

US imports of apparel and textiles from Japan in the year through October increased five per cent over the year-earlier period.