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Japan proposes 16-nation, '08 talks to create FTA for Asia

Japan will propose that it and 15 neighbors start talks in 2008 on forming an Asian free-trade zone, a move toward creating an East Asian economic community, the trade minister said April 4.

Minister of Economy, Trade and Industry Toshihiro Nikai said Japan will ask the 10-member Association of Southeast Asian Nations (ASEAN) as well as China, South Korea, India, Australia and New Zealand to consider joining regional FTA talks.

ASEAN's members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Nikai also said Japan will propose setting up a policy coordination entity in East Asia to be modeled after the Organization for Economic Cooperation and Development to promote regional economic integration.

According to the Ministry of Economy, Trade and Industry, a regional free-trade pact would boost Japan's gross domestic product (GDP) by around & ¥5 trillion and the total GDP of other countries taking part by around ¥25 trillion.

Japan, which is keen not to fall behind China, has stepped up its pursuit of free-trade agreements in recent years, but progress has been slow. This is mainly because of Japan's protectionist stance on agriculture.

The feasibility of a regional agreement has also been questioned, especially considering Japan's limited record on free-trade pacts and its chilly ties with China.

Japan and the 15 countries are the original members of the East Asian Summit, an entity that was inaugurated in December in Kuala Lumpur to work toward the creation of a regional community. (Kyodo)

Shukan ST: April 14, 2006

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National News Japan proposes 16-nation, '08 talks to create FTA for Asia Japan will propose that it and 15 neighbors start talks in 2008 on forming an Asian free-trade zone, a move toward creating an East Asian economic community, the trade minister said April 4. Minister of Economy, Trade and Industry Toshihiro Nikai said Japan will ask the 10-member Association of Southeast Asian Nations (ASEAN) as well as China, South Korea, India, Australia and New Zealand to consider joining regional FTA talks. ASEAN's members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Nikai also said Japan will propose setting up a policy coordination entity in East Asia to be modeled after the Organization for Economic Cooperation and Development to promote regional economic integration. According to the Ministry of Economy, Trade and Industry, a regional free-trade pact would boost Japan's gross domestic product (GDP) by around & ¥5 trillion and the total GDP of other countries taking part by around ¥25 trillion. Japan, which is keen not to fall behind China, has stepped up its pursuit of free-trade agreements in recent years, but progress has been slow. This is mainly because of Japan's protectionist stance on agriculture. The feasibility of a regional agreement has also been questioned, especially considering Japan's limited record on free-trade pacts and its chilly ties with China. Japan and the 15 countries are the original members of the East Asian Summit, an entity that was inaugurated in December in Kuala Lumpur to work toward the creation of a regional community. (Kyodo) Shukan ST: April 14, 2006 (C) All rights reserved