Regional free trade pacts help global trading
Regional free trade pacts help global trading
SINGAPORE (AFP): Regional free trade pacts stabilize global
trading, Japanese Minister of International Trade and Industry
Takeo Hiranuma said Monday, as the world's second largest economy
comes closer to signing such an agreement with Singapore.
He said the mechanism for global trade, the World Trade
Organization (WTO), was lagging behind the rapid changes in the
trading environment as businesses worldwide seek quick
resolutions to issues they face.
"It seems ... that we have reached a point where the speed of
change in the business environment is too rapid for the WTO to
keep pace in creating new rules," he said in a speech to business
executives here.
"Regional efforts to complement such multilateral negotiations
are becoming a critical sub-system in terms of enhancing the
stability of the global system," he added.
A joint study on the proposed free trade pact between the two
countries was completed earlier this month, moving Singapore and
Japan closer to realizing an agreement.
Hiranuma said he hopes an agreement could be signed within one
year.
He said such an accord will be a "milestone in Japan's
international trade policy" -- being a first for the world's
second largest economy.
Japan was also consulting with South Korea and Mexico to sign
off similar deals, and Malaysia has expressed interest as well,
he added.
Hiranuma said the agreement with Singapore will go beyond the
traditional mode of just tearing down tariff barriers.
"Investment rules, liberalization of trade in services and
competition policy coordination will open the way for
participation in each other's markets, with national treatment
applied in principle and anti-competitive business practices kept
firmly in check," he said.
"Mutual recognition agreements regarding standards and
conformance will avoid inspection duplications and reduce
transaction costs," he said, adding a dispute settlement
mechanism will be established.
Both countries would take full advantage of information
technology, starting off with a mutual recognition of each
other's certification for electronic signatures and so-called
"privacy marks" for private institutions, Hiranuma said.
Both sides also aim to develop cross-border, one-stop services
on the Internet "whereby all the export and import data requested
by the various relevant authorities ... can be submitted at the
touch of a key."
The flow of business people will be facilitated under the
arrangement, the Japanese minister said.
While Asian countries were still far from achieving economic
integration like the European Union because of cultural and
political diversities, the Internet could be used to bridge the
gaps.
A new round of WTO talks has been stalled due to differences
in agenda by the world's developed and developing nations.
As the WTO talks remain in limbo, nations have began
establishing their own bilateral and regional free trade
alliances.
Singapore and New Zealand have recently signed such a deal and
plans are in foot to merge the ASEAN Free Trade Area with a zone
covering Australia and New Zealand.