Japan, GCC states to meet by the year-end to push FTA talks
Gulf Times, Qatar
Japan, GCC states to meet by the year-end to push FTA talks
26 September 2006
Business Reporter
DOHA: Energy-poor Japan and the GCC states are expected to meet again in Saudi Arabia by the end of this year for a second round on negotiations on Free Trade Agreement (FTA) in a bid to secure stable fuel supplies.
Terming the proposed GCC-Japan FTA, which will be "neither bilateral nor multilateral in nature, as "symbolically and substantially important", Japanese Ambassador to Qatar Masahiko Horie said: "We would like to hold a second round of negotiations by the end of this year."
Expressing the hope that a consensus could be reached as soon as possible, he said it is possible hopefully by next year.
Stating that the FTA is "too belated" as it should have been done 10-20 years ago because of the relationship Japan shares with the GCC, Horie added: "I think with the FTA agreement the share of Japan in total trade will go up not only in the GCC as a whole but also in Qatar, particularly."
Asked whether there was any difference of opinion in the first round held last week in Japan, he said the general atmosphere was good and that the talks took place in an "effective and fruitful" manner with both sides eager to reach an agreement as soon as possible.
Citing that Japan imports 70% (of its energy requirements) from the GCC, and 20% from non-GCC members in the region - amounting to 90% from the Middle East - he said, "so, naturally, we have to discuss how much Japan and the GCC can offer each other.
However, there are reports that Japan plans to seek in the proposed FTA the inclusion of a GCC pledge to preferentially supply crude oil to Japan, even in emergencies like war.
Asked specifically if the first found failed to arrive at a level playing field, Horie said: "I do not think so. We are very optimistic and there is a strong resolve to reach an agreement on the negotiations.
"The first round of negotiations took place in an effective and fruitful manner with both sides exchanging request offers on what kind of tariffs should be reduced and what kind of services have to be improved by the GCC," he added.
From the Japanese side, he said, the request to the GCC side was to reduce the 5% common tariff on certain products.
Asked about which are the areas in which Japan was seeking tariff re-balancing, he said: "I cannot pinpoint the areas."
To a query in a multilateral framework (as championed by World Trade Organisation) what is the relevance of bilateral relations, he said GCC-FTA is a kind of multi-bi(lateral) and not multilateral because of the special situation in the GCC, which comprises countries enjoying good relationships with Japan.
With the WTO trade talks faltering, countries all over the world are pursuing their own separate FTAs with trading partners.
"We are happy to negotiate with, all but together with the GCC," he said, adding that at the first discussion the GCC Secretariat presented the request offer and Japan had also offered the same.
"We discussed and the outcome was later analysed at the respective home countries of every individual member in the negotiations. In the next round of negotiations we will take a solid stance to pinpoint where tariffs have to adjusted," Horie said.
Japan concluded its first FTA with Singapore in 2002, followed later by an FTA with Mexico in 2004 and a third with Malaysia in December last year.
