US envoy says solving farm issues is key to possible FTA with Japan
Wednesday February 14, 2007
U.S. envoy says solving farm issues is key to possible FTA with Japan
(Kyodo) — U.S. Ambassador to Japan Thomas Schieffer sounded a positive note Wednesday over a possible free trade agreement between the world’s two major economies and indicated that resolving farm issues would be the key.
Noting that Tokyo and Washington both believe in freedom, democracy and the market economy, Schieffer said, "The United States and Japan can do more in other areas to integrate our two economies and that integration would have positive effects on both of our countries."
Speaking at a luncheon of the American Chamber of Commerce in Japan, the ambassador pointed out that Japan will increasingly need to rely on the Untied States as a food provider with the aging of its farmers.
"Common sense seems to indicate that Japan will import even more food in the future," he said. "If that is the case, does it not make sense to now open Japanese markets further to countries like the United States, Canada and Australia?" the envoy asked.
"We need Japan as an agricultural market and Japan needs us as an agricultural producer. It is advantageous to both of us and we should pursue it," Schieffer said. "In so doing, we are also part of the ranks of those among us who work to increase our chances of a comprehensive free trade agreement," he said.
The ACCJ has called on the two countries to sign a comprehensive bilateral economic integration pact, while Japanese business leaders have supported the idea of a bilateral FTA.
But agricultural issues have been seen as a major stumbling bloc due to Japan’s protectionist policy, especially over politically sensitive farm produce such as rice, wheat and dairy products.
Schieffer stressed the need for agricultural reforms in Japan, citing estimates by the Japanese government that the burden on Japanese consumers caused by the farm protection policy amounts to about 2 percent of the country’s gross domestic product, or the equivalent to Egypt’s GDP in 2005.
The ambassador, who oversaw the conclusion of the U.S.-Australia FTA during his previous tenure as envoy to Canberra, said the two major farm producers reached compromise over sensitive products such as beef and sugar and emphasized the importance of starting negotiations first.
Asked about the impact on possible U.S. FTA talks with Japan of the country’s ongoing negotiations with South Korea, Schieffer said that if both sides successfully reach a conclusion, it will be "instructive to Japan" and "a very positive thing."
Like Japan, South Korea is a net food importer, and its farmers are opposed to opening the country’s agricultural market further by signing an FTA with the United States.
