Sun, 05 Sep 2004

Japan-ASEAN trade talks to reopen in April

Zakki P. Hakim, The Jakarta Post, Jakarta

Japan and Southeast Asia's trade ministers agreed to resume talks on establishing a free trade agreement between the nations next April and to include agriculture in the negotiations.

On Saturday separate talks with South Korea, led by Minister of Trade Kim Hyun-chong, also led to an agreement to start a free trade area with founders of the Association of Southeast Asian Nations (ASEAN) by 2009 and 2014 for the remaining four members.

The founding members are Brunei, Malaysia, Indonesia, the Philippines, Singapore and Thailand, while Cambodia, Myanmar, Laos and Vietnam joined later.

The talks with China, represented by Minister of Commerce Bo Xilai finalized agreements on trade in goods and services, and a dispute settlement mechanism to be formalized in Laos. The ASEAN- China free trade area is expected by 2010 for the six founding nations and 2015 for the newer members.

The agreements were during the three-day 36th ASEAN Economic Ministers' (AEM) Meeting.

Host Minister of Industry and Trade Rini MS Soewandi said the ministers agreed to recommend to the leaders that ASEAN and Japan commence negotiations in April 2005 and conclude talks within two years from that date.

The ASEAN leaders will meet in a summit in Vientiane, Laos, in November.

Officials here say the Japan-ASEAN talks have been hampered by the "different positions" among the Japanese ministries of foreign affairs; economy, trade and industry; agriculture and fisheries; and finance. Moreover, officials said that Japan was reluctant to open its agro-based product market.

However Japan's Minister of Economy, Trade and Industry Shoichi Nakagawa gave his assurance that he represented his government and that the agricultural sector would be included in the negotiation.

"There will be no a prior exception ...," Nakagawa said.

The six ASEAN founding members and Japan target a free trade area by 2012, while the newer members by 2017.