Business heads seek better environment for Japan-S. Korea FTA talks
Kyodo | 22 Apr 2008
Business heads seek better environment for Japan-S. Korea FTA talks
TOKYO, April 22 (Kyodo) - Business leaders from Japan and South Korea on Monday asked their governments to create a favorable environment for the two neighboring countries to restart negotiations on a bilateral free trade agreement.
Fujio Mitarai, chairman of the Japan Business Federation, and Cho Suck Rai, chairman of the Federation of Korean Industries, submitted to Japanese Prime Minister Yasuo Fukuda and South Korean President Lee Myung Bak a package of recommendations at the premier’s office in Tokyo.
The proposals, compiled by the two business lobby groups earlier in the day during their roundtable discussion, said concluding an FTA will mutually benefit Japan and South Korea.
The business roundtable talks were held for the first time following an initiative by Fukuda when he visited South Korea to meet Lee in February.
The two business lobby groups also said in their statement they agreed to discuss specific ways to expand and balance trade in parts and raw materials.
The FTA talks between the two nations have been stalled since November 2004 partly because Tokyo rejected Seoul’s demand to open its market for agricultural products.
But observers say that South Korea’s parts and raw materials sectors remain cautious about a hasty conclusion to the bilateral FTA talks because liberalizing these business areas could seriously damage local industries by allowing competitive Japanese parts to enter the South Korean market.
During their discussions, the Japanese side called for an early resumption of the FTA negotiations, saying an FTA accord will play a major role in improving the environment for trade and investment, a Japanese official said.
In a speech delivered in a luncheon at a Tokyo hotel, Lee noted that South Korea’s trade with Japan expanded to $82. 7 billion last year from $200 million in 1965 when the two nations normalized their ties.
Lee said it is time for South Korea and Japan to take a leap forward, moving from quantitative expansion to strengthening the quality of economic cooperation by upgrading human and cultural exchanges.
With exchanges thus expanded, he believes the two countries will be ready for the bilateral FTA and be able to cooperate with each other at a higher level, Lee said.
Touching upon the expansion of trade in parts and raw materials, Lee said in the speech that South Korea is ready to support Japanese firms willing to open for business there by constructing industrial parks exclusively designated for the firms in order to provide them with land at reasonable prices.
The business leaders of Japan and South Korea also agreed to improve the business environment so as to increase bilateral trade and investment.
For the purpose, the two business groups agreed to establish a consultative body to draw up specific proposals to put to their governments.
The official said the two top business lobby groups are expected to launch a working-level body to follow up such a consultative scheme.
During the roundtable discussions, the South Korean side emphasized it is necessary for Japan to boost investment in South Korea as part of efforts to stem possible public concern over South Korea’s big trade deficit with Japan — about $30 billion, the Nippon Keidanren official said.
The two business lobbies also agreed that it is necessary for Japan and South Korea to collaborate on environment-related issues and study ways to cooperate on energy saving and the development of new and alternative energies.
They agreed to hold their second round of business roundtable talks in Seoul in the fall.
