Japan aims to build a new image at APEC

Japan aims to build a new image at APEC

By Eugene Moosa

TOKYO (Reuter): Japan seems to have only one goal at the 18- member Asia-Pacific Economic Cooperation (APEC) forum later this week -- to shed its image as a fence-sitter in efforts to build a free trade zone in the region.

Japan's ambassador to APEC, Tetsuya Endo, and other senior officials of the Foreign Ministry in briefings ahead of the meeting have said Japan's goal is to foster regional liberalization of trade and investment. But they cautiously avoid discussing dates.

"We will act as fast as possible on trade and investment liberalization," a senior Foreign Ministry official told a briefing. "But by 'fast' we do not mean 'hastily'."

An APEC panel of economists and academics has recommended that the region liberalize trade and investment by 2020, with the industrialized countries taking the lead by 2010.

That will be the focus of the ministerial meeting on Nov. 11 and 12 in Jakarta and at the summit of the APEC forum on Nov. 15 at nearby Bogor.

Trade Minister Ryutaro Hashimoto, Foreign Minister Yohei Kono and Prime Minister Tomiichi Murayama will attend the meetings.

Other topics include human resources development, a unified code for investment, aid for developing countries and environmental issues.

APEC groups Australia, the United States, Canada, Mexico, Japan, China, Hong Kong, Taiwan, South Korea, Indonesia, Brunei, the Philippines, Malaysia, Singapore, Thailand, Papua New Guinea and New Zealand. Chile becomes a member at Bogor.

"We are not necessarily fence-sitting. Our main goal is to help hosts Indonesia achieve a consensus within APEC on the free- trade deadline and other matters," another senior ministry official said. "But we must try to get rid of this image."

Other Tokyo officials were fighting a rear-guard action against Japanese media reports which said Japan was simply reluctant to accept a deadline.

A Foreign Ministry spokesman at a regular news conference denied a Japanese news report from Jakarta which claimed Japan, along with Malaysia, was unhappy about the timing of the free- trade zone in a draft summit declaration.

"The report was written without reflecting our position," the spokesman said.

One of the thorniest issues is Japan's heavily protected rice farmers. The Agriculture Ministry has opposed moves to liberalize rice imports. Japan grudgingly agreed to partially lift a blanket ban on rice imports in last year's Uruguay Round of multilateral trade talks.

The characteristically careful approach has invited even the domestic media, normally complacent on trade issues, to criticize the government for dilly-dallying.

"Through its own actions, Japan must be responsible for the stable development of APEC," the Asahi Shimbun said in an editorial, "and not only by playing a bridging role between East Asian countries now frequently at odds with the United States.

"Japan must become a major importing country, and at the same time truly help the development of East Asian countries. This is the only way to earn trust from Asian neighbors and bolster APEC."

One of the excuses for Japan not taking a lead role in the APEC forum at Jakarta is that next year Japan will host the APEC ministerial and summit meetings in Osaka.

"We will be hosts next year and therefore our biggest theme this year is to help build a consensus," APEC ambassador Endo said. "Japan must act as a coordinator."

But some lawmakers in Murayama's ruling coalition admitted there was a lack of concrete goals about Japan's role in APEC.

"I don't think we have a clear idea what we're doing at APEC," one lawmaker said. "If we have to accept a deadline, why isn't there any talk about rice? I don't think Mr. Murayama can show a strong performance in Indonesia."