APEC sees Pacific talks, Asian groups leading to regionwide free trade+

YOKOHAMA, Nov. 10 Kyodo -
(EDS: ADDING 12TH GRAF)
Pacific Rim ministers acknowledged Wednesday that a U.S.-backed trans-Pacific
free trade initiative and Asian regional frameworks would contribute to the
future creation of a regionwide free trade area during discussions to be passed
on to their leaders later this week.
During their two-day talks that will end Thursday with the adoption of a joint
statement, the trade and foreign ministers of the Asia-Pacific Economic
Cooperation forum also basically agreed to maintain their ''standstill'' on new
trade barriers until 2013, Japanese officials said, as concerns linger about
China's rare earth exports.
As APEC seeks to resist protectionism, Japanese Foreign Minister Seiji Maehara
told reporters he thinks export restriction issues should be discussed
''substantially'' at the World Trade Organization, apparently mindful of
Japan's struggle over China's toughened customs inspections on the resource
that is vital for high-tech products amid renewed strains in bilateral ties.
Japan is hosting a series of APEC meetings for the first time since 1995, as
the 21-member forum, involving the world's three leading economies also with
the United States and China, plans to outline how to pursue a proposed Free
Trade Area for the Asia-Pacific region and compile its first-ever regional
economic growth strategy.
The ministers agreed that ''pathways toward an FTAAP would be created by using
such frameworks as ASEAN plus three, ASEAN plus six, and the Trans-Pacific
Partnership,'' Maehara said, referring to two regional groupings centering on
the Association of Southeast Asian Nations and the U.S.-promoted multilateral
trade initiative.
The ASEAN plus three groups Japan, China, South Korea and the 10-member
association, while the ASEAN plus six adds Australia, India, and New Zealand to
the 13 countries.
The TPP originated in a free trade agreement among Brunei, Chile, New Zealand
and Singapore, and negotiations are under way to expand it with another five
APEC countries, including major agricultural exporters such as the United
States and Australia.
Japan officially decided Tuesday to start consultations with TPP negotiating
countries, with an eye to making a decision on whether to join the initiative
around June. But the policy triggered opposition from local farmers concerned
about a possible massive influx of cheaper agricultural products.
Over 3,000 people staged a rally in Tokyo the same day opposing Japan's
participation in the TPP, with a leading farm group saying that ''agriculture,
forestry and fisheries in Japan will be wiped out'' if Japan takes such a move.
As Japan appears to lean toward joining the TPP, countries involved in the TPP
negotiations, such as the United States and Chile, expressed a positive view
about Tokyo's stance.
But Japan will have to rush in making its decision, as Washington hopes to
conclude the negotiations in November 2011, when it will host next year's APEC
summit.
U.S. Commerce Secretary Gary Locke hinted to reporters in Tokyo that Japan has
a myriad of issues it has to deal with in joining the TPP, saying he heard that
there ''are some barriers with respect to agriculture'' and ''in terms of the
pharmaceutical area and medical equipment.''
The APEC ministerial meeting, whose outcome will be reflected in a meeting of
APEC leaders to be held on Saturday and Sunday, was co-chaired by Maehara and
Economy, Trade and Industry Minister Akihiro Ohata. U.S. Secretary of State
Hillary Clinton was among ministers absent from the event and represented by
proxies.
On the stalled global market-opening talks at the WTO, the ministers reaffirmed
the need to conclude them within 2011, as the negotiations are likely to again
fail to meet the current deadline of 2010, the officials said.
WTO Director General Pascal Lamy attended the meeting to update ministers on
the Doha Round of talks which have missed deadline after deadline since their
launch in 2001, due chiefly to gaps between advanced and major developing
economies.
''A quite large number of countries said that a conclusion of the Doha Round
within 2011 would become extremely important,'' said one official who briefed
on the first session of the day.
Participants were also eager to extend an earlier commitment to refrain from
raising new trade barriers, imposing new export restrictions, or implementing
measures inconsistent with WTO rules, with many feeling it appropriate to
extend the commitment beyond 2010 until 2013, the officials said.
Set up in 1989, APEC accounts for 52.7 percent of the world's gross domestic
product and 44.4 percent of global trade by value, according to the Japanese
government. It operates on the basis of nonbinding commitments.
Its members are Australia, Canada, Chile, China, Hong Kong, Japan, South Korea,
Mexico, New Zealand, Papua New Guinea, Peru, Russia, Taiwan, the United States,
and seven ASEAN members -- Brunei, Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam.
==Kyodo