The European Union is ready to eliminate tariffs on Japanese auto parts in exchange for Japan ending import duties on a range of European food items, the Nikkei said.

Japanese companies export about 500 billion yen (3.16 billion pounds) of auto parts to the EU every year and are charged about 3-4.5 percent in tariffs by the EU, according to the business daily.

Officials of the two countries will meet in Brussels next week for a third round of bilateral talks to reach an economic partnership agreement. The two countries met in Japan in September to discuss draft proposals on tariff elimination, the paper said.

In exchange for eliminating its auto parts tariffs immediately the EU is asking for an end or reduction in duties in eight fields including on wine that is charged at 15 percent per litre, and cheese, which is charged at 30 percent, the Nikkei said.

Japan had proposed to end 80 percent of its tariffs immediately and increasing it to 85 percent within 10 years, the paper said.

The EU offered a 90 percent tariff elimination except the 10 percent duty on automobiles and 14 percent on LCD televisions, according to the newspaper.