APEC free trade a key issue under Japan's chair in 2010+

TOKYO, Dec. 9 Kyodo - Japan said Wednesday it will help Pacific Rim economies accelerate their efforts to create a free trade area in the region at a series of Asia-Pacific Economic Cooperation forum meetings next year, stressing the importance of sharing views among its 21 members.

Foreign Minister Katsuya Okada's pledge at the APEC symposium held in Tokyo,
which effectively marked the start of Japan's chairmanship in 2010, came amid
opinions pointing to the difficulty of reaching a consensus at the rather
diversified regional body, with some of the members cautious about the United
States securing its presence in Asia.
''As the chair, we would like to encourage discussions to explore building
blocks toward'' a possible Free Trade Area in the Asia Pacific, Okada said at
the symposium joined by both government and private-sector officials from the
member economies.
But he also said Japan needs to ''listen to voices that call for building a
common view on the FTAAP.''
APEC, established in 1989 as a gathering to boost trade among its members, held
its annual summit last month in Singapore.
APEC leaders agreed on the potential benefits of creating a region-wide free
trade area. But their joint declaration also underscored that an analytical
study by the group has recognized ''the challenges of establishing such an
agreement.''
The result added to heated debates over which grouping would be the most
suitable to deepen regional cooperation and integration, with China widely seen
as being cautious about U.S. participation and favoring a tighter union
consisting of Japan, China, South Korea and the 10-member Association of
Southeast Asian Nations.
Lee Jong Wha, chief economist at the Asian Development Bank, who was among the
participants in the symposium, said the so-called ''ASEAN plus three''
framework should be the starting point to promote economic integration in the
region, casting doubt on U.S. participation.
''The question is whether the U.S. is ready (to make a political commitment to
such an international issue) when there is so much on its domestic agenda,''
Lee said, citing the example of the delayed process for the U.S. Congress to
ratify an earlier agreed free trade accord with South Korea.
Jeffrey Schott, senior fellow at U.S. think tank Peterson Institute for
International Economics, argued for an integration process involving the United
States.
He referred to the Trans-Pacific Partnership, which U.S. President Barack Obama
recently confirmed the United States would participate in so as to successfully
integrate the Asia-Pacific economies.
''The TPP provides the most flexibility with regard to coverage and
membership'' as it involves some ASEAN members and could facilitate melding of
integration plans, Schott said.
The TPP now groups New Zealand, Chile, Singapore and Brunei. Australia, Peru
and Vietnam will start negotiations for membership next year, along with the
United States. Schott added the initiative must be also open to other big
economies in APEC such as Japan, China and South Korea.
APEC, which accounts for more than half of global economic output and over 40
percent of world trade value, is made up of Australia, Brunei, Canada, Chile,
China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand,
Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand,
the United States and Vietnam.
==Kyodo