Japan gives priority to seal FTA with GCC
Kuwait News Agency
Japan gives priority to seal FTA with GCC
7 March 2006
TOKYO, March 7 (KUNA) — Japan decided Tuesday to revitalize its efforts to expand trade ties with other countries via free trade agreements (FTAs) and investment accords, with focusing on Kuwait and other member states of the Gulf Cooperation Council (GCC).
Having lagged behind in the race to seal FTAs compared with China and South Korea, external trade-related cabinet ministers agreed to put speed before quality in the government’s effort to sign trade pacts. At the meeting, the ministers also decided to prioritize signing FTAs with certain nations including the GCC. By enhancing ties with the GCC, Japan aims to secure a stable supply of natural resources. Japan’s trade with the GCC totaled JPY 6.8 trillion (USD 58.
6 billion) in 2004, trailing only China, the US and South Korea. Tokyo plans to call on the group to eliminate a 5 percent tariff on imports and to give Japan preferential treatment in providing crude oil in the event of emergencies such as war.
Until recently, Tokyo was more interested in pursuing Economic Partnership Agreements (EPAs), broader-based treaties covering not only FTAs but also rules designed to facilitate bilateral investment, dispute settlement and intellectual property management. FTA, meanwhile, is mainly aimed at elimination of trade tariffs.
