Automobile Trade Talks Reach Critical Phase

U.S. and Japanese negotiators met into the early hours Saturday hoping to thrash out a deal that could finally end their highstakes showdown over automobiles.

The discussions were described as “serious” and “in depth” by a U.S. official who spoke only on condition of anonymity. The official would not describe any details.

Japanese negotiator Yoshihiro Sakamoto indicated the talks had reached a more profound stage.

Although both declined to comment on the content of the discussions, their statements were the first signs that the two sides had moved from their long-entrenched positions.

The United States says that unless an agreement is reached by Wednesday, it will impose 100 percent tariffs on 13 models of Japanese luxury cars, including the Toyota Lexus and Honda Acura. Washington wants Japan to meet three demands on opening its automobile import market.

The United States wants to increase the number of dealerships selling U.S. cars in Japan. It also wants Japanese companies to buy more parts from the United States, and it wants deregulation of the Japanese car parts market to give foreign firms a better chance to compete.

Japanese automobiles and parts account for half the United States’ $66 billion trade deficit with Japan.