Japan and Mongolia have in principle reached an economic partnership agreement, including the eventual elimination of tariffs on used cars imported from Japan.
Under the agreement reached between Prime Minister Shinzo Abe and visiting Mongolian President Tsakhiagiin Elbegdorj on Tuesday, tariffs on cars four or more years old will be gradually abolished over the course of 10 years.
Removing the 5 percent tariffs on those used cars was the focus of the negotiations. Mongolia compromised to reach the accord by adopting the 10-year time span.
This is the first time that Mongolia has reached a broad agreement on an EPA with any nation. The two nations aim to officially sign the deal by the end of this year.
Following Tuesday’s agreement, reached during talks at the Prime Minister’s Office, about 50 percent of all tariffs imposed on Japan’s exports to Mongolia will be immediately abolished, while the figure is expected to increase to about 96 percent in 10 years.