Japan draws up Nikai initiative to boost regional trade
The Star (Malaysia)
20 August 2006
Japan draws up Nikai initiative to boost regional trade
KUALA LUMPUR: Japan will announce a US$80mil to US$100mil (RM300mil to RM380mil) fund over a 10-year period to establish a Comprehensive Economic Partnership in East Asia (CEPEA) spanning 16 countries under the Nikai Initiative.
Japan’s Ministry of Economy, Trade and Industry drew up the Nikai Initiative, named after its current minister Toshihiro Nikai, following the 11th Asean Summit in Kuala Lumpur last December.
A Japanese official said here Saturday that Tokyo was busy promoting the 16-nation East Asia Free Trade Agreement (FTA) among regional leaders to ensure that the region becomes a more economically integrated area with a level economic playing field.
Nikai is expected to announce the “juicy” initiative to his counterparts at the 38th Asean Economic Ministers (AEM) meeting, which Malaysia is hosting next week.
The Japanese private sector is pivotal in pushing the initiative, as they want to dangle what is undoubtedly a carrot for Asean countries to propel the proposed East Asia Free Trade Area (EAFTA).
With Asean and other regional economies rallying behind a potentially vibrant FTA among the 16 East Asian nations, other powerful regional groupings such as in Europe and North America could be given a run for their money.
But analysts said it was a grandiose plan to foster closer economic linkages among the 10-member Asean, and China, Japan and South Korea, plus India, Australia and New Zealand.
They said it would make heads turn as, besides Japan, it includes economic powerhouses such as China and India. All together, it would create a consumer base in excess of three billion people.
“Now Asean is having about five FTAs, which would benefit businessmen if they are combined under a single FTA,” the Japanese official said.
The comprehensive Japanese plan would establish a free, fair and rules-based market economy, and ensure Asean as the driving force of East Asian economic integration emphasising on open dynamism among partners engaged in this region.
The proposed first step under CEPEA, to be presented at the AEM meeting, was undertaken by a study group of experts from Asean Plus 6 countries.
The second proposal of the Nikai Initiative is to establish the Economic Research Institute for Asean and East Asia (ERIA). Its location is yet to be decided although Japan wants it to be based in Asean.
“ERIA will conduct research, analyses and studies on regional-economic integration and make intellectual input to support the Asean secretariat in Jakarta,” said the official.
“We hope ERIA together with the secretariat will play a major role in East Asia,” he said.
With the East Asia FTA in place, the official said, it would help remove barriers, which have been delaying countries like Japan and India from signing FTAs with Asean. - Bernama
