Japan aims to sign FTAs with Korea, ASEAN, China
Japan aims to sign FTAs with Korea, ASEAN, China
Dow Jones, Tokyo
Japan's Foreign Ministry plans to sign free trade agreements
(FTA) aimed at removing international trade barriers and
liberalizing transnational investment, starting with South Korea
and members of the Association of Southeast Asian Nations (ASEAN)
then China, the Nihon Keizai Shimbun reports in its Sunday
edition.
The plan is in line with a new diplomatic strategy drawn up by
the ministry that prioritizes such arrangements as part of
efforts to step up economic cooperation in East Asia.
Japan lags other major economies in signing FTAs with other
countries and aims to strengthen trade ties through such pacts to
revive its economy.
A total of 140 FTAs have been signed worldwide so far. But
Japan has concluded just one such bilateral trade deal, with
Singapore in January, because the government has prioritized
multilateral trade negotiations and the Agriculture Ministry has
opposed FTAs on the grounds that such agreements could lead to a
sudden increase in imports of farm products.
The Foreign Ministry is due to set up a new section dedicated
to FTA matters later this year and is expected to agree with
Mexico to negotiate an FTA at the time of the Asia-Pacific
Economic Cooperation forum scheduled to be held in Mexico later
this month. The ministry also wants to begin similar negotiations
with South Korea ahead of schedule in 2004, with a view to
signing a bilateral trade accord.
The ministry's plan calls for beginning talks about signing
FTAs with Thailand, the Philippines and Malaysia within several
years before doing so with other Southeast Asian countries that
have recently joined Asean, such as Vietnam and Cambodia.
The ministry is also considering entering into an FTA with
China. Although it is not clear whether Beijing will fully comply
with the rules of the World Trade Organization (WTO) soon, the
ministry hopes to discuss specifics of a possible FTA deal while
supporting China's economic reforms.
The ministry attaches as much importance to FTAs as it does to
negotiations under the auspices of WTO, on the grounds that the
WTO, whose membership and agenda have expanded rapidly, is not
fully equipped to tackle new trade issues and quickly set new
rules.