TOKYO: The US and Japan on Tuesday launched economic talks that Vice President Mike Pence said could result in a bilateral trade deal, salvaging some of the progress made in negotiations towards the now-abandoned TPP.

"At some point in the future there may be a decision made between our nations to take what we have learned in this dialogue and commence formal negotiations for a free trade agreement," Pence said at a joint news conference with Deputy Prime Minister Taro Aso.

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