Japan raises concerns over high vehicle tariffs

Japanese Ambassador to Sri Lanka Akio Isomata has voiced concerns over the high tariffs imposed on Japanese vehicle imports, particularly electric vehicles, during a recent discussion on trade relations between the two countries

Ambassador Isomata stated that Sri Lanka levies significantly higher taxes on electric vehicles imported from Japan when compared to vehicles arriving from other countries. 

He warned that such imbalances would become a key sticking point in any potential negotiations for a bilateral free trade agreement (FTA) between the two nations.
“If a free trade agreement is to be reached between Sri Lanka and Japan, the current tax structure on vehicle imports must be thoroughly discussed,” Ambassador Isomata said, adding that Japan is not interested in entering into an FTA merely for symbolic reasons.

The ambassador further emphasized that a trade agreement would only be viable if it ensured mutual economic benefits. 

“We are not looking to sign a free trade agreement just for the sake of saying there is one. It must be a practical, balanced partnership,” he stated.
Interestingly, Ambassador Isomata clarified that as of now, there has been no formal request from the Sri Lankan government to initiate a free trade agreement with Japan.

Drawing on Japan’s historical experience with tariff disputes, Isomata referenced previous trade tensions with the United States, including during the presidency of Donald Trump. 

He noted that when the U.S. imposed reciprocal tariffs on Japanese goods, the Japanese Prime Minister responded swiftly by initiating high-level dialogue with U.S. officials on April 7 of that year.
“This is not a new crisis for Japan,” the ambassador noted, citing similar trade frictions in the 1930s over cotton exports and in the 1970s when Japan had to adopt voluntary export restraints.

The ambassador’s remarks signal a cautious but clear message to Sri Lanka in that Japan values trade relationships grounded in fairness and reciprocity, and expects similar principles in any future negotiations.