TOKYO, July 10 — Japan's deputy chief trade negotiator Hiroshi Oe said today the latest round of two-way trade talks among officials with the United States was finished and the remaining issues will be carried over to a ministerial meeting at the end of this month.

He made comment after bilateral trade talks with his counterpart Wendy Cutler, acting deputy US trade representative, started yesterday.

Oe told reporters the two nations would remain in contact and he might hold unofficial talks with Cutler tomorrow.

"There are remaining issues which need political decisions at the end," he told reporters.

Japan and the United States have been negotiating to narrow gaps over issues in the farm and auto sectors and the two-way trade deal plays a crucial part in a broad Trans-Pacific Partnership (TPP) free trade pact.

"I am encouraged this week that we were able to further narrow distance between us on the remaining issues, including auto and agriculture, and identified a pathway toward reaching an agreement," Cutler told reporters.

"We will be working hard with Japan and other countries to lay the ground for a successful ministerial meeting."

Japan is prepared to increase its import quota for US rice by 50,000 tonnes a year, around a quarter of the US demand, media reported.

Japan also seeks immediate abolition of a 2.5 per cent tariff on US imports of auto parts, according to the reports.

Ministers from the 12-nation TPP negotiations will meet July 28-31 in Maui, Hawaii, after chief negotiators meet from July 24 to 27.

There is about a 70 per cent chance for a broad agreement among ministers, Japan's Economy Minister Akira Amari said yesterday.

Japan has effectively reached a bilateral agreement with Malaysia, Singapore, Vietnam and Brunei, and is finalising talks with China and Peru, the Nikkei business daily said. — Reuters