The Japanese government hopes to minimize impacts on domestic dairy farmers by making cheese from only certain areas and limited cheese brands eligible for the tariff cuts or elimination, informed sources said.

The handling of the Japanese tariffs on cheese are the stickiest issue in the negotiations on an envisaged Japan-EU economic partnership agreement.

By showing its readiness to compromise on the cheese issue, Tokyo hopes to accelerate the EPA talks so that the two sides can reach a broad accord in July, according to the sources.

Japan's tariffs on imported cheese now stand at 29.8 percent.

The country is considering the idea of setting up a new tariff framework applicable only to certain European-made cheese products that are unlikely to compete much with domestic products, with tariff cuts or elimination to be carried out under the framework, the sources said.

The step will require a review of the country's tariff lines, or detailed lists showing products subject to import tariffs and specific tariff rates.

The EU has been urging Japan to remove its tariffs on soft cheese products whose demand is growing in the country.

But the Japanese side has remained cautious about the EU demand. The country was allowed to maintain its soft cheese tariffs under the Trans-Pacific Partnership free trade deal. (Jiji Press)