ATLANTA, Oct 2 (Reuters) - A U.S.-Japan agreement on autos
trade as part of a sweeping Pacific Rim trade deal would have
its own dispute settlement mechanism including penalties if
Japan does not open its market enough to U.S. vehicles, a source
close to the negotiations said on Friday.
Negotiators are working to finalize a trade deal which would
stretch from Japan to Peru and autos trade is one of the few
remaining sticking points.
The source said a broader deal on autos trade between Japan,
the United States, Mexico and Canada was nearly complete, with
remaining differences centered on local content thresholds for
specific auto parts.
Mexico is keen to maintain high thresholds to protect its
booming auto industry from increased competition from Asia,
where Japan has already-established supply chains.