FTA deals deadlocked<\/p>\n
The Asahi Shimbun, Tokyo<\/p>\n
Japan's separate negotiations with Thailand, the Philippines,
\nMalaysia and South Korea for bilateral free trade agreements
\n(FTAs) have run into a brick wall. The outlook is particularly
\ngloomy for talks with the three members of the Association of
\nSoutheast Asian Nations (ASEAN), with the impasse threatening to
\ndoom Japan's effort to strike a deal with the trio by the end of
\nthe year.<\/p>\n
Thailand is strongly pressing Japan to scrap its tariffs on
\nrice, chicken, starch and sugar. But Tokyo has so far rejected
\nthe demand, saying it cannot eliminate tariffs on farm imports.<\/p>\n
In a meeting on the FTA held before the bilateral talks,
\ngovernment officials and industry leaders from both countries
\nagreed to consider exempting \"sensitive\" agricultural products
\nfrom tariff elimination. Bangkok, however, is adamant, saying an
\nFTA that won't increase its farm exports is meaningless.<\/p>\n
In its talks with Japan, the Philippines are putting the
\npriority on its request for Tokyo's acceptance of nurses and
\nnursing care workers from that country. Remittances from
\nFilipinos working abroad to their relatives at home are important
\nforeign exchange earners for the Philippines.<\/p>\n
Japan, though, has turned down this request, saying that
\naccepting many foreign nurses and care workers would lower the
\nlevels of medical services and nursing care.<\/p>\n
Japan's reluctance to open its doors to farm imports and
\nforeign workers is not the only block to progress toward FTAs.
\nThe negotiation partners are also hamstrung by their own domestic
\nconcerns.<\/p>\n
In the FTA talks, Tokyo has called on these countries to
\nimprove their economic cooperation environments. Main items on
\nJapan's wish list include clear rules to secure efficiency in
\ninvestments such as factory construction and the liberalization
\nof trade in financial, telecommunications and other services.<\/p>\n
While beneficial for Japan, such reforms could hurt these
\ncountries' domestic industries through tougher foreign
\ncompetition. Their governments have no choice but to resist such
\nsteps. This is a common dilemma in trade talks between an
\nindustrial and a developing country.<\/p>\n
With its economic power far outstripping these trade
\npartners', however, Japan should now make concessions to push the
\nnegotiations forward. Japan can contribute greatly to long-term
\ndevelopment in East Asia by sharing profits in the region through
\nFTAs. That would also advance Japan's own interests.<\/p>\n
Successful conclusions of Tokyo's FTA negotiations with the
\nthree ASEAN members would lay a solid foundation for market
\nintegration in East Asia involving South Korea and China, too.
\nJapan should act quickly to avoid falling behind in the region's
\nFTA race.<\/p>\n
For decades, ASEAN and Japan have been linked by an extensive
\nweb of economic, cultural and other ties that bind them through
\nhuman interactions and bilateral flows of goods and money. As the
\naging of its population will inevitably cause a serious shortage
\nof workers such as nurses, Japan must make more efforts to
\nencourage acceptance of immigrant workers.<\/p>\n
After he inked an FTA with Mexico last month, Prime Minister
\nJunichiro Koizumi spoke enthusiastically about the FTA talks with
\nJapan's trade partners in Asia, acknowledging the need to make
\nconcessions on farm trade. Yet despite Koizumi's explicit words,
\nhis ministers are lukewarm about pushing through such pacts.<\/p>\n
Yoshinobu Shimamura, the minister of agriculture, forestry and
\nfisheries, has voiced skepticism about opening wide the domestic
\nfarm market to imports. Other related ministers, including
\nEconomy, Trade and Industry Minister Shoichi Nakagawa and Foreign
\nMinister Nobutaka Machimura, have joined the ranks of doubters,
\nexpressing pessimism about closing deals with the trio by the end
\nof the year.<\/p>\n
Foot-dragging by Japan's top policymakers ruled out any
\nbreakthrough in the FTA talks during last week's Asia-Europe
\nMeeting, which brought together Asian and European leaders in
\nHanoi.<\/p>\n
However, there will be further diplomatic opportunities to
\naccelerate the negotiations, including the scheduled ASEAN Plus
\nThree (Japan, China and South Korea) summit in Laos in November.
\nThe onus is now on Koizumi to make a bold decision that is in
\nJapan's long-term national interests.<\/p>",
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