Pact among ASEAN, partners could kickstart Japan’s stalled policy
Yomiuri Shimbun | Sep. 1, 2012
Trade talks represent progress / Pact among ASEAN, partners could kickstart nation’s stalled policy
Yasuhiro Takizawa and Takeshi Nagata / Yomiuri Shimbun Staff Writers
SIEM REAP, Cambodia—The agreement reached Thursday to start negotiations in November for a new regional economic and trade area among ASEAN countries and six partners, including Japan, is a lifeline for the nation, as its trade policy has come to an impasse.
However, the countries concerned significantly differ in their stances on such a regional framework, called a regional comprehensive economic partnership (RCEP). There are many challenging tasks to be accomplished before it can produce effective results.
An RCEP would cover ten countries from the Association of Southeast Asian Nations and six partners, including Japan, Australia, China, India, South Korea and New Zealand.
"Initially, I thought there would be many obstacles [in the way of an accord]. But things have developed quickly over the past year," a relieved Economy, Trade and Industry Minister Yukio Edano told reporters after the meeting of economic ministers from the 16 nations.
The nation’s trade policy has failed to produce major accomplishments recently. Although Japan, China and South Korea have agreed to launch negotiations for a three-way free trade agreement this year, there are concerns that talks might be delayed due to territorial issues with these countries.
With regard to participation in the Trans-Pacific Partnership free trade negotiations, the government still faces difficulty in making a decision due to strong resistance at home.
Since the agreement on an RCEP was reached despite such difficult circumstances, government officials involved have had high expectations for its success. Some analysts estimate an RCEP would boost Japan’s economy twice as much as the TPP, which currently involves nine nations, on a gross domestic product basis.
However, as the 16 nations vary in terms of the size of their economies and the level of economic development, their stances and interests in the economic partnership significantly differ.
The GDP per capita of Australia, the highest, is about 83 times that of Myanmmar, the lowest. Developing countries are concerned that their economies would be adversely affected by an influx of cheap products imported from China and other countries.
Some experts question the effectiveness of an RCEP, saying it might end up full of exception clauses inserted to win over smaller economies.
