Japan, Peru wrap up FTA talks, eye market for autos+

YOKOHAMA, Nov. 14 Kyodo -
Japan and Peru agreed Sunday to conclude talks for a bilateral free trade
agreement, paving the way for Tokyo to secure stable supply of resources from
the South American country and export more products such as automobiles,
Japanese officials said.
The pact, for which Japanese Prime Minister Naoto Kan and Peruvian President
Alan Garcia confirmed the end of negotiations, will abolish tariffs on more
than 99 percent of the value of goods traded between the two nations within 10
years, according to the Japanese trade ministry.
Through the FTA, Japan can expect to increase exports of automobiles, auto
parts, and electronic items such as TVs, while Peru can offer goods such as
farm and marine products, among them poultry, squid and asparagus, and
resources such as zinc.
During their talks on the fringes of an Asia-Pacific Economic Cooperation
summit, Kan told Garcia that the conclusion of FTA negotiations is a ''big step
toward closer ties'' between their countries on both sides of the Pacific.
Garcia voiced hopes that Japanese firms will make use of this accord to break
into the South American market, the officials said.
Japan's FTA with Peru comes as Tokyo hopes to catch up with other countries
such as the United States and China that already have FTAs with resource-rich
Peru, with Kan and Garcia agreeing to sign and ratify the accord at an early
date.
Japan's Economy, Trade and Industry Minister Akihiro Ohata issued a statement
underlining the FTA's significance for ensuring business conditions that will
not put Japan behind other countries.
Tokyo and Lima launched their FTA negotiations in May 2009, following up on an
agreement the previous year between then Japanese Prime Minister Taro Aso and
Garcia on the sidelines of an APEC summit in Lima.
Prior to Kan's talks with Garcia, Peruvian Foreign Trade and Tourism Minister
Eduardo Ferreyros met Ohata and was quoted as saying that Japan would fulfill a
key role in the global economy if it joins a U.S.-backed regional free trade
initiative known as the Trans-Pacific Partnership.
Kan also met separately with Chilean President Sebastian Pinera and told him
that Japan wants to engage in consultations with TPP negotiating countries,
according to the officials.
Japan has expressed interest in the TPP, which is being negotiated by nine APEC
members including Chile, Peru, the United States and Australia as an ambitious
regional FTA, but has not yet decided whether to join it.
==Kyodo
2010-11-14 21:42:46