Japan auto industry teams up for maximum benefit from trade deals
Toyota and Honda among those aiming to speed up applications for lower tariffs
Japanese automakers have had to deal with the laborious process of obtaining certificates proving country of origin for various parts and components procured in global supply chains, delaying their ability to take advantage of free trade agreements.
TOKYO -- Toyota Motor, Honda Motor, Denso and six other Japanese automotive companies will cooperate in applying for reduced tariffs under free trade agreements Japan has signed with other countries and territories, Nikkei has learned.
Exports to economies which have free trade or economic partnership agreements with Japan are qualified for reduced tariffs under specific conditions, but the research required to apply can take as long as 11 months, thus delaying the start of the benefits and costing companies money.