(Reuters) – The United States urged Japan on Monday to open its auto and insurance marketsmore to foreign companies as the two countries pursue bilateral talks linked to a broader free-trade agreement that covers two-fifths of the globe.

The United States hopes to make a proposal to Japan on its trade barriers in September, U.S. Trade Representative Michael Froman said, as part of a drive to reach a conclusion on the Trans-Pacific Partnership (TPP) free trade initiative by the end of the year.

Reports that Japan’s government is willing to phase out tariffs on 85 percent of goods under negotiations for the TPP are a “good initial step”, Froman said, suggesting there was still a gap between the trading partners.  Read more