ASEAN and Japan hold meeting on free trade area
ASEAN and Japan hold meeting on free trade area
Agence France-Presse, Kuala Lumpur
Senior officials from the Association of Southeast Asian
Nations (ASEAN) and Japan held their first meeting Monday to map
out a framework to create a regional free trade agreement (FTA)
within a decade.
Philippines' trade official Ramon Kabigting, who is co-
chairing the talks, described it as a "very good step forward"
but said another four meetings would be held before October to
thrash out details.
The committee hoped to complete a framework on the "rules of
the game" for negotiations on the FTA to present to ASEAN leaders
at their summit in Bali, Indonesia, in October, he said.
"We agreed (today) on the terms of reference for our
committee, elements that we wanted to put in framework that we
have this year to complete and a workplan for attacking the
assignment," he told reporters.
Kabigting said an ASEAN-Japan FTA would be a "strong building
block" for an expanded East Asia free trade zone encompassing
rising giant China and South Korea.
The next meeting would likely take place in Tokyo late April,
he added.
The meeting in Kuala Lumpur was the first since Japanese Prime
Minister Junichiro Koizumi sealed a pact with ASEAN leaders at
their summit in November to work on a framework to set up a free
trade deal.
Japan, one of the biggest investors in the region, is striving
to ensure it is not left behind after ASEAN leaders in November
signed a pact with China to create the world's biggest FTA
between 2010 and 2015, embracing 1.7 billion people and trade
worth US$1.2 trillion.
China accounts for only five percent of ASEAN exports, less
than Japan's 10 to 15 percent share but Japan is losing ground
due to its economic slump.
From 1993 to 2000, Japan's trade with ASEAN increased at an
annual rate of 15 percent.
With an FTA, ASEAN exports to Japan would likely rise 20.6
billion dollars or 44.2 percent from 1997 levels by 2020, while
Japanese exports to the region are seen rising 27.5 percent or 20
billion dollars, officials said.
It could also boost ASEAN's gross domestic product (GDP) by
two percent and Japan's GDP by 0.07 percent.
But officials said Japan's reluctance to open up its sensitive
agriculture sector was a key obstacle, with Tokyo refusing to
offer immediate tariff reductions for agricultural products from
Southeast Asia.
On the other hand, analysts said ASEAN might use its newly
established political, economic and security links with China to
seek trade concessions from Japan.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Vietnam.