Japanese official: FTA talks with China are possible in 2008
People’s Daily | Beijing | 15 June 2006
Japanese official: FTA talks with China are possible in 2008
By People’s Daily Online
Mr. Osamu Watanabe, Chairman of the Japan External Trade Organization (JETRO) recently told China Youth Daily in Beijing that talks on the free trade zone between Japan and China were not likely to be launched until 2008 when China fully honors its WTO commitment.
"It is not yet ripe for such talks," said Mr. Watanabe, but he hopes an investment agreement would be settled before that.
He considered the issue of China’s intellectual property rights protection as one of the major tumbling stones on the establishment of a free trade zone. He also recognized the political chill in the bilateral relations and deteriorating sentiment between the two parties.
Appreciating China’s efforts and achievements on the IPR protection for her seven years of WTO membership he said that, "A system cannot be in place over a night,". He hoped that China would make further progress with respect to this by 2008 and then talks could begin.
He offered help to China with the IPR protection, suggesting joint sponsored seminars and Japan’s training programs for Chinese officials on cracking down on fake products.
Standard formulation, among others, was another factor that Mr. Watanabe believed would have to be solved before a free trade zone could be established.
He explained that Asian countries vary in levels of development. In the late 1990s’, China and Japan promoted the formation of the industrial layout in Asia. Over the ten years between 1985 and 2004, world trade grew five times while the trade in East Asia grew by 10. Regional trade within East Asia accounted for 54% of the total foreign trade of an East Asian nation.
However, the difference in the industrial and trade roles of the East Asian countries has led to tariffs and investment barriers among them. Mr. Watanabe explained that China and ASEAN could hold talks over free trade agreement because the only solution for the two developing economies is to lower tariffs.
"But there is a lot involved between Japan and China," he commented.
Mr. Watanabe denied that the political chill had directly led to the economic distance between the two countries. But he recognized that further economic relations would not be possible without healthy political interaction and support of the public.
"From now on, the two countries must deepen mutual understanding and trust between their peoples and make the other side more assured politically, "noted Watanabe.
South Korea-Japan and Sino-South Korea free trade negotiations have evolved from academic discussion into governmental consultations. However FTA still remains untouched between China and Japan.
Some experts attributed the situation to Japan’s passive attitude out of Japan’s concern over its agriculture protection, its role in regional affairs and its relationship with other powers.
Promoting Japan’s foreign trade is the responsibility of the JETRO. Mr. Watanabe’s China trip this time is to solve some investment barriers faced by Japanese businesses. The IP issue is one of such focuses. He also hopes to reach an investment protocol with China to address the problems he described as a lack of transparency and consistency in China’s administrative practice and the disagreement between the central and local government.
The growing call for the economic integration of East Asia makes the vision of the China-Japan free trade zone look particularly significant. However, the reality is that the prospect of a China-Japan alliance playing the leading role in the process looks dim at least currently due to the lingering historical issues and lack of mutual trust. It is the ASEAN that is playing the leading role in the proposed integration process in East Asia.
