Japan, Mongolia aim to start FTA talks in early FY 2011+

TOKYO, Nov. 19 Kyodo -
Japan and Mongolia agreed Friday to accelerate their preliminary studies so
they can start negotiations on a bilateral free trade agreement at an early
stage in fiscal 2011 and cooperate in the development of natural resources such
as rare earths.
Under a joint statement issued by Prime Minister Naoto Kan and Mongolian
President Tsakhia Elbegdorj after their talks, the two countries affirmed the
importance of accelerating their joint study, launched in June, on signing an
FTA, as part of their goal to boost economic ties and aim for a strategic
partnership.
The two countries aim to complete a report on the study by the end of March.
Their accord comes after the government approved on Nov. 9 its basic policy on
trade liberalization, which stated that Japan will ''commence'' FTA
negotiations with Mongolia ''as soon as possible.''
The statement said Mongolia will ''proactively support'' Japanese companies
with advanced technologies to develop natural resources in Mongolia, including
rare earth minerals used in the production of high-tech products, as well as
coal and uranium, noting that ''cooperation from Japan is most important.''
The two leaders also agreed to strategically pursue the development of
Mongolia's minerals for the benefit of both countries.
Their accord comes at a time Japan is trying to diversify suppliers of rare
earths following slowed exports from China, which currently accounts for about
97 percent of the world's rare earth supply. Rare earths are used in the
production of high-tech products such as cellphones, digital cameras,
flat-panel televisions and hybrid vehicles.
Mongolia, for its part, is aware of the need to add value to raw material
resources and thus seeks investment from companies with high-level
technologies.
''When Mongolian natural resources and Japanese technologies are combined, we
can mutually benefit,'' Elbegdorj said at a news conference earlier in the day.
''Now is the time not just to talk, but to carry out specific projects, and we
have basically agreed with the Japanese government to lay the groundwork for
facilitating the business environment,'' the Mongolian president told the Japan
National Press Club.
Elbegdorj said Mongolia seeks business partners with environment-friendly
technologies as well as transparent and responsible business practices, and
that those conditions would work favorably for Japanese firms.
He also stressed his country's geographical advantage in attracting foreign
investment, saying investors would have easy access to China and Russia, two
fast-growing economies.
==Kyodo
2010-11-19 22:08:18