Japan in hard position as APEC meet nears<\/p>\n
By Peter Starr<\/p>\n
TOKYO (AFP): Japan finds itself caught between a rock and a
\nhard place as it heads off to this year's ministerial meeting and
\nsummit of leaders of the Asia-Pacific Economic Cooperation (APEC)
\nforum in Indonesia.<\/p>\n
Five years after the inaugural meeting of APEC foreign and
\ntrade ministers in Canberra in 1989, the world's second-largest
\neconomy is still trying to navigate its way through the diversity
\nof 17 members from developing, newly-industrialized and developed
\neconomies on both sides of the Pacific.<\/p>\n
Long the only Asian member of elite groupings -- such as the
\nOrganization of Economic Cooperation and Development (OECD) and
\nthe Group of Seven (G7) -- things used to be much easier for
\nJapan.<\/p>\n
The biggest market for Japanese exports was the United States
\nand the rest of Asia was largely a backwater.<\/p>\n
But with the yen's appreciation and the emergence of other
\nAsian economies boosting Japanese investment and trade throughout
\nthe region in recent years, Japan has been forced to steer a new
\npath in its foreign economic relations.<\/p>\n
In APEC, a foreign ministry official noted that the \"extreme\"
\npositions of Australia backing and Malaysia opposing a proposed
\nfree-trade area have forced Japan to occupy a position somewhere
\n\"in between\" the two.<\/p>\n
Japan has argued that a specific timetable for developing such
\nan area by 2020, as called for recently by an APEC eminent
\npersons group, would raise problems for the least developed
\nmembers such as China and Indonesia.<\/p>\n
For this reason, the official said, Japan was somewhat
\n\"surprised\" by recent reports that Indonesia had included the
\ntimetable for a free-trade area in a draft of the political
\ndeclaration to be issued to APEC leaders on Nov. 15.<\/p>\n
Japan has since reportedly urged Indonesia to omit any
\nreference to the proposed free-trade area on the grounds that it
\ncould run counter to the principles of the General Agreement on
\nTariffs and Trade (GATT).<\/p>\n
Yasuhiko Shibata, a senior fellow at the Yomiuri Research
\nInstitute, said the Japanese government's external economic
\npolicy was \"totally unclear\" and called this week for the urgent
\nestablishment of a basic policy towards Asia.<\/p>\n
\"If Japan continues to take an ambiguous attitude at the
\nupcoming APEC meeting, Japan may see its reputation nosedive and
\ninvite contempt from Asian nations,\" Shibata said, noting that
\nJapan was hosting next year's meeting.<\/p>\n
Tetsuya Endo, the Japanese ambassador in charge of Asia-
\nPacific cooperation, told AFP that the Nov. 15 declaration would
\nbe \"very general\" as Indonesia would have to accommodate the
\n\"natural\" cautiousness of countries such as China.<\/p>\n
The statement \"may not be so specific\" and will probably
\ninstead deal with such issues as \"the coverage of liberalization
\nor, more fundamentally, what liberalization means,\" he said in an
\ninterview.<\/p>\n
\"The blueprint to implement that declaration, if any, will
\nfall upon the shoulders of (the) next chair country,\" Endo said,
\nadding that \"more difficulties\" would emerge at the follow-up
\nmeeting if Japan hosts it next year as expected.<\/p>\n
Endo refused to comment on reports last week that Malaysia
\nwould go ahead and form its proposed East Asian Economic Caucus
\n(EAEC) without Japan, which has failed to voice its support for
\nthe four-year-old idea amid fears of antagonizing other APEC
\nmembers such as the United States and Australia.<\/p>\n
Japan is still \"considering seriously\" the Malaysian proposal
\n\"but we have two or three big requirements,\" the Japanese
\ndiplomat said.<\/p>\n
\"It should not draw a demarcation line through the Pacific
\nOcean. And EAEC should get at least the blessing from countries
\nconcerned. In other words, it should not start with opposition
\nfrom behind in APEC,\" he said. \"Thirdly, maybe EAEC should not
\ndisturb the operations or activities in APEC.\"<\/p>\n
APEC groups Brunei, Australia, Canada, China, Hong Kong,
\nIndonesia, Japan, South Korea, Malaysia, Mexico, New Zealand,
\nPapua New Guinea, the Philippines, Singapore, Taiwan, Thailand
\nand the United States. Chile is to join this month.<\/p>",
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