Japan, Mongolia aim to start FTA talks in early Fy 2011
Bernama | November 20, 2010
Japan, Mongolia aim to start FTA talks in early Fy 2011
TOKYO, Nov 20 (Bernama) — Japan and Mongolia agreed Friday to accelerate their preliminary studies so they can start negotiations on a bilateral free trade agreement at an early stage in fiscal 2011, Kyodo News reported.
The agreement will allow both nations to cooperate in the development of natural resources such as rare earths.
Rare earths are used in the production of high-tech products such as cellphones, digital cameras, flat-panel televisions and hybrid vehicles.
Under a joint statement issued by Prime Minister Naoto Kan and Mongolian President Tsakhia Elbegdorj, the two countries affirmed the importance of accelerating their joint study, launched in June, on signing an FTA, as part of their goal to boost economic ties and aim for a strategic partnership.
The two countries aim to complete a report on the study by the end of March, the statement said.
Their accord comes after the government approved on Nov 9 its basic policy on trade liberalization, which stated that Japan will commence FTA negotiations with Mongolia as soon as possible.
The statement said Mongolia will proactively support Japanese companies with advanced technologies to develop natural resources in Mongolia, as well as coal and uranium.
The two leaders also agreed to strategically pursue the development of Mongolia’s minerals for the benefit of both countries.
Their accord comes at a time Japan is trying to diversify suppliers of rare earths following slowed exports from China, which currently accounts for about 97 percent of the world’s rare earth supply.
Mongolia, for its part, is aware of the need to add value to raw material resources and thus seeks investment from companies with high-level technologies.
Earlier, the Mongolian President Elbegdorj said: "When Mongolian natural resources and Japanese technologies are combined, we can mutually benefit."
"Now is the time not just to talk, but to carry out specific projects, and we have basically agreed with the Japanese government to lay the groundwork for facilitating the business environment," he told the Japan National Press Club.
Elbegdorj said Mongolia seeks business partners with environment-friendly technologies as well as transparent and responsible business practices, and that those conditions would work favorably for Japanese firms.
He also stressed his country’s geographical advantage in attracting foreign investment, saying investors would have easy access to China and Russia, two fast-growing economies.
