APEC officials mired in tricky negotiation

APEC officials mired in tricky negotiation

KUALA LUMPUR (AFP): Official-level talks aimed at securing a
APEC free trade plan dragged on into an unscheduled third session
on Thursday with fish and forestry products still the main
sticking point for Japan.

"In the case of forestry and fisheries products Japan is one
of the economies having some difficulty," Hong Kong director-
general of trade Alan Lai told reporters earlier during a break
in official-level talks.

Japanese officials confirmed there had been no concrete
progress but declined to go into details.

A Thai delegate emerging from the afternoon session of the
closed-door talks said the delegates from the 18 members as well
as new members Vietnam, Russia and Peru were desperately seeking
a compromise.

"We have to... find flexibilities," he said, in a reference
to a possible delayed timeframe for Japan to slash tariffs in the
fisheries sector.

Another ASEAN official said southeast Asian countries would
not insist that Japan open up the sector.

"The fight is really between Japan and the United States
leading the pack of New Zealand, Australia etcetera," she said,
adding the Americans were being "unfair".

Fisheries is one of nine products targeted under an early
liberalization scheme scheduled to start next year.

Fearing a backlash from Japanese fisherman, Tokyo is reluctant
to cut tariffs on fish and related products. Japan is also
dragging its feet in the area of forestry products ranging from
stationery to furniture.

"The APEC vision is one thing but it's quite another to put
your money where your mouth is," said Malaysia's Abdul Razak
Ramly, who left the meeting he was chairing to give a belated
news briefing.

"There is one economy which is having political difficulties
but we all have difficulties... We would focus on building the
package with the end view that everyone is in," he said.

The talks continued amid accusations that Japan was engaging
in checkbook diplomacy to buy support for its attempt to water
down the liberalization plan, a charge Japan denied.

"We have been saying we cannot accept tariff abolition in
forestry and fish products, but we have never tied it to our
financial assistance," a Japanese official told AFP.

"We are not saying this issue should passed in exchange for
financial assistance," he added.

While Malaysia's Razak declined to comment on details of the
negotiations, he said the aim was still to come up with a
credible package on trade liberalization.

"If we'd (allowed exemptions) before then we wouldn't be where
we are now," he said.

Japan faces a tough fight to defend its fish and forestry
industries.

Leaders of the Japanese government and ruling Liberal
Democratic Party (LDP) have refused to budge on demands by the
United States, Australia and other nations for early
liberalization in the two sensitive sectors.

The conservative party needs to prevent the free trade drive
from filtering down into more politically sensitive domestic
farming sectors, including the nation's staple of rice, experts
said.

"Farming and fisheries lobby groups provide a large well of
votes for the LDP, which sees no reason to offend its support
base," said Tokai University politics professor Fukuji Taguchi.

The party needs more sensitivity than ever to the demands of
its rural supporters after suffering a staggering defeat in
parliamentary elections four months ago, in which it was hit by
string of losses in urban areas.