Japan and the United States are in the final phase of talks aimed at setting up a new vice-ministerial-level panel, tentatively called the trade commission, officials close to the preparatory talks said Thursday.
The commission will hold periodic bilateral discussions on key trade issues related to automobiles, agricultural products and other major trade items.
The two governments may also create several subcommittees to discuss issues related to deregulation, direct investment in Japan and macroeconomic policies.
The panel is expected to be finalized when Prime Minister Junichiro Koizumi travels to the U.S. in late June or early July for a summit with President George W. Bush.