Japan and the United Kingdom formally began negotiations Tuesday on a free trade agreement, aiming to clinch a deal by the end of the year when the transition period for the U.K.'s exit from the European Union ends.

The countries will build on an existing Japan-European Union deal, with Tokyo looking to scrap auto tariffs while London has said it wants benefits for its financial services and textile industries.

Foreign Minister Toshimitsu Motegi kicked off the talks in a videoconference with Liz Truss, the British trade secretary.