Seoul, Tokyo Agree to Resume Talks on FTA
Korea Times, Seoul
Seoul, Tokyo Agree to Resume Talks on FTA
12 January 2009
South Korea and Japan will hold working-level discussions on resuming their negotiations on free trade agreement (FTA) while working closely to overcome the worldwide financial crisis now threatening both their economies, Yonhap News reported quoting Seoul’s presidential office of Cheong Wa Dae Monday.
South Korean President Lee Myung-bak and Japan’s Prime Minister Taro Aso have also agreed to closely coordinate their countries’ economic policies to help maximize the impact on their ailing economies, according to the statement released by Cheong Wa Dae.
"In particular, the two agreed to closely cooperate on reforming their financial systems, drawing up macroeconomic policies and dealing with protective trade blocs ahead of the second G-20 summit scheduled for London in April," it said.
The meeting, the fifth of its kind since the Japanese premier took office in September, comes amid gloomy projections that the world economy could face one of the worst recessions in history this year, bringing down with it Japan and Korea, the world’s second and 13th largest economies, respectively.
To offset possible short-term liquidity crises in either of the countries, Seoul and Tokyo have raised the ceiling of their foreign currency swap lines to $30 billion from $13 billion.
"President Lee noted the expansion of the foreign currency swap lines between Korea and Japan late last year greatly contributed to the stabilization of financial markets in the region, as well as the strengthening of financial cooperation between the two countries," the statement said.
The two leaders also agreed to continue discussions through working-level officials on the possible resumption of talks aimed at concluding the FTA.
Seoul and Tokyo previously held several rounds of preliminary discussions on signing the envisioned deal but the talks were suspended in 2004.
"The leaders expressed hope that the negotiations will produce an outcome that is mutually beneficial to both countries," the statement said.
They also noted a need to increase visits and exchanges between their countries’ citizens.
