LIMA – Japan and Peru plan to sign a bilateral free-trade agreement around the end of this month during a visit to Japan by a Peruvian minister, according to sources in both governments.
Tokyo is hoping that the deal will put the brakes on a declining market share for Japanese cars in the South American country.
According to the draft agreement, Peru will immediately lift tariffs on Japanese products such as large vehicles with engines of 3,000cc or more, currently with a 9 percent tariff, and televisions.
Tariffs on passenger cars and most automobile parts will be gradually phased out in four to nine years.
Japan is eager for the FTA to go into effect to curb the significant ebbing of its market share in Peru amid the rise in popularity of South Korean and other foreign brand cars there.
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