In this eighth round of talks, Japan urged Europe to cancel the 10-percent tariff on Japanese cars, which will allow Tokyo to boost car exports, said the sources.
According to the public television network NHK, the EU representatives demand Tokyo to revise security regulations imposed on food items, big vehicles and motorcycles.
Japan said in a document that during the bilateral talks the regulations on security standards, which must match those in Europe, will be partially revised.
The EU also wants to make progress on the flexibilization of European firms' access to the Japanese market in items like wine, cheese and pork, besides the rail sector.
Tokyo is the EU's seventh major trade partner while the 28-member European bloc is Japan's third major trade partner. According to government figures, the two economies represent around 27 percent of the global Gross Domestic Product. (LH/PL)