Japan to push Asian free trade zone

Japan to push Asian free trade zone

Associated Press, Tokyo

Japan wants to fast track the creation of an Asian free trade zone with 14 neighboring nations and territories as a regional riposte to similar economic pacts in North America and Europe, a news report said Saturday.

Tokyo hopes to conclude a draft framework for the deal before November, when Asian leaders meet at Cambodian summit, Kyodo News said, citing Trade Ministry officials.

The zone, envisioned as including Japan, China, South Korea, Hong Kong and Taiwan as well as the 10 members of the Association of Southeast Asian Nations, would span a market of 2 billion people, the report said.

It could also be expanded to include New Zealand, Australia or the United States.

Tokyo wants a blueprint hammered out before ASEAN leaders meet their counterparts from China, Japan and South Korean at a summit this autumn in Cambodia.

Ideally, the free-trade zone would be put into operation before 2010, the deadline for liberalizing trade among member countries of the Asia-Pacific Economic Cooperation forum, the report said.

Trade Ministry officials were unavailable for comment Saturday.

But Prime Minister Junichiro Koizumi has increasingly stressed the need for closer economic ties in Asia and recently penned a free trade agreement with Singapore, Japan's first.

Speaking Friday at the Bo'ao Forum for Asia, a conference of business and political leaders, Koizumi said the region must integrate more to compete against the North American Free Trade Agreement and the European Union.

He said study groups were already examining a possible Japanese free trade agreement with South Korea, adding: "In the future, Japan will promote economic partnerships or free trade agreements with other countries."