Daily Mainichi, Japan

U.S. Sen. Baucus proposes U.S.-EU-Japan services FTA

29 September 2006

U.S. Sen. Max Baucus (D-Montana) on Thursday proposed that the United States, the European Union and Japan conclude a services free trade agreement.

Baucus, a ranking member of the Senate Finance Committee, emphasized the need to "spend more time on undertakings with our top trading partners," as the Doha Round of the World Trade Organization’s multilateral trade liberalization talks has been stalled since July due mainly to differences over farm trade.

"A free trade agreement with either trading partner is currently impossible," however, Baucus said, noting that "our differences over agriculture are too large."

Baucus thus stressed that "we should lay the foundations for a better relationship by focusing on what we can accomplish now" and called for concluding the tripartite FTA limited to the services sector, which he said is "critical to U.S. competitive strength."

The U.S. government recognizes an FTA as a comprehensive pact that includes agricultural products, industrial goods and services, and permits no FTA targeting a specific sector.

Washington has thus pursued FTA accords with small and medium-sized trading partners because of ease of negotiations. U.S. business circles, however, are hoping for a larger-scale FTA that covers a wider market. (Jiji Press)