Honda's i-DCD drive motor for hybrid cars is the first that uses no heavy rare earth metals. Reuters/Issei Kato

The European Union is ready to end import tariffs on Japanese car parts as part of a broader trade deal in return for concessions on agricultural product imports by Tokyo, the Nikkei newspaper reported on Friday.

In talks in Tokyo this week, the EU offered to remove the tariff on car parts if Japan will do similar for imports of items such as pork, cheese and wine, the paper said.

Japan has a strong farm lobby that has typically opposed opening up domestic agricultural markets to imports.

The long-running trade talks are part of efforts to set up an Economic Partnership Agreement between Japan and the EU by next month, the paper said.

The EU’s import tariff of between 3-4% on Japanese auto parts would be removed on 90% of the products, the Nikkei said, adding that Tokyo also wants the European 10% import tariff on Japanese cars removed.

According to the newspaper, the EU has offered to end the tariffs on cars in 10 years, but Japan is pushing for a shorter period.