Japan to consider free trade agreement with China: sources
Mainichi Japan | April 12, 2012
Japan to consider free trade agreement with China: sources
TOKYO (Kyodo) — The Japanese government has decided to consider negotiating for a free trade agreement with China as prospects for a trilateral accord with China and South Korea have become grimmer due to Seoul’s opposition for fear of a rise in imports from Japan, trade sources said Wednesday.
Japan, China and South Korea have been in talks with an eye to beginning formal trade liberalization talks. But since reaching such an agreement in May has become difficult, Tokyo is considering prioritizing talks for a bilateral agreement with China, they said.
Japan expects to begin necessary preparations for FTA talks with China after confirming South Korea’s stance at a trilateral summit to be held in Beijing on May 13 and 14, they said.
Japan, China and South Korea launched a joint study on a possible trilateral FTA in May 2010 and compiled a report last month calling for the early start of formal negotiations for it.
Japan and China had hoped the three countries could reach an agreement to begin the negotiations at the upcoming summit, the sources said.
But South Korea was opposed and reluctant even to set a target date for the start of trade talks amid domestic concerns over competition with Japanese industrial parts and material products, they said.
It will be difficult for the three countries to agree to start trade talks even if they keep discussing the matter ahead of South Korea’s presidential election in December, they said.
China has already sounded Japan out on its intention to start talks on a bilateral FTA. Japan was initially cautious over the idea given concerns about adverse effects on domestic agriculture, but now believes it is necessary to vie with South Korea, which seeks to begin FTA negotiations with China.
For Japan, the focus of possible talks with China will be how to deal with its agricultural market which is heavily protected by high tariffs, as it fears an influx of cheap farm produce, such as rice and chicken, while expecting the FTA to boost exports of Japanese industrial products.
"We cannot postpone (trade) liberalization with China any longer," a Japanese government official said.
Tokyo has been considering joining multilateral trade talks to form a Trans-Pacific Partnership agreement with countries including the United States, and is also expected to reach an agreement with the European Union to begin FTA talks in the near future.
