Japan wins Asean support for Nikai initiative
Bernama, Malaysia
Japan Wins Asean Support For Nikai Initiative
By P. Vijian
23 August 2006
KUALA LUMPUR, Aug 23 (Bernama) — Japan won support from Asean Wednesday for a study into a free trade area in East Asia covering 16 countries but the grouping wants Tokyo to prioritise clinching a trade pact with it beforehand.
They were also receptive to a proposal by the world’s second largest economy to undertake joint ventures in the energy sector to possibly produce alternative fuels amid skyrocketing oil prices.
Datuk Seri Rafidah Aziz told reporters after consultations between Asean Economic Ministers and Japan the grouping had given the green light for a 10 billion yen funding to study the East Asia Free Trade Agreement (FTA).
The Minister of International Trade and Industry also stressed Japan should first focus on the Asean-Japan FTA before indulging in a larger economic bloc including countries like Australia, New Zealand and India.
Japan’s Economy, Trade and Industry Minister Toshihiro Nikai, who led Japan to the consultations, said Tokyo was ready to explore alternative energy sources.
As ambitious Asean trade ministers aspired to promote tariff-free regional trade quickly, regional analysts felt it should be done cautiously as some countries were still not ready.
Asean’s Eminent Person Group (EPG) chairman Tun Musa Hitam said the deadline for economic union needs more time as fundamental structures were still missing.
There was still a lack of a proper decision making process, lack of monitoring or implementation mechanisms, nor were there rules to reprimand recalcitrant member states.
The EPG has been tasked to draft the Asean Charter which will provide inputs to bring changes to the 39-year-old grouping.
At the conclusion of the 38th Asean Economic Ministerial Meeting today the 10-member grouping said it will fully eliminate non-tariff barriers (NTBs) by 2012, in three trenches starting from 2008, 2009 and 2010 for developed countries and 2010, 2011 and 2012 for lesser developed countries.
These NTBs include non-automatic licensing requirements, quantitative restrictions, technical and control measures and inspection systems which are deemed to be trade restrictive.
Elsewhere, Asean Secretary General Ong Keng Yong did not rule out the likelihood of the lesser developed economies of CLMV (Cambodia, Laos, Myanmar, Vietnam) signing a separate Free Trade Agreement with Japan.
If there are difficulties to sign with these countries as a grouping, it was also possible for Tokyo to ink pacts with the four countries individually, he said after CLMV met Japan separately after the AEM-Japan consultations.
Also, in asking for greater Japanese investments, he said CLMV were keen to develop their small and medium enterprises (SMEs) sector as well as learn from Japan on how to enhance their business competitiveness.
Thursday, AEM would have consultations with China, Japan and Korea as well as with India, the East Asia Business Council and the Asean-United States Business Council.
