@

Report No.240604
Vol.24 No.6 February 2007


NEWS

- International -

Japan Negotiates EPA on Many Fronts

The government announced on December 21, 2006 that it reached an agreement in principle on the Japan-Brunei Economic Partnership Agreement (EPA) with a Free Trade Agreement at its center.

With regard to Japan-Australia EPA, Japan agreed to launch talks beginning in 2007 at the summit telephone conversation between Prime Minister Shinzo Abe and Prime Minister John Howard on December 12, 2006. The government of Japan will, in this negotiation, seek to establish exemptions from tariff elimination of sensitive agricultural products including rice to protect agriculture and local economies. This is the point Japan had sought during the preliminary talks. The joint Japan-Australia study report, which determines the framework of the negotiation, says that negotiations begin "with all products and issues." It also says that all options for flexibility" are on the table. This gives ground for Japan to insist on its call for exemptions of sensitive agricultural products. "All options for flexibility" include "exclusion" and/or "deferral for later negotiation" just as Japan demanded and the government will use it as a foothold in realizing the exemptions. However, "phasing" was also included as another illustration of "all options for flexibility," on which ground Australia is seen to insist on a limit to permissible derogation from tariff elimination. Opinions of both sides found their expressions on the issue of flexibility relating to tariff elimination.

Mr. Sinzo Abe, Prime Minister of Japan and Dr. Manmohan Singh, Prime Minister of India met on December 15, 2006 at the prime minister's official residence in Tokyo and agreed to launch an EPA negotiation as soon as possible and to come to a virtual conclusion soonest within the next two years. The first negotiation talk takes place in New Delhi from January 31 to February 2, 2007. Japan plans to negotiate in the direction where sensitive agricultural products like rice, wheat and barley, and sugar etc. are exempt from tariff elimination. It also plans to reach an agreement in principle by the end of the year.

The government announced on January 9 that it plans to have a first talk with Vietnam on an EPA with a Free Trade Agreement at its center during January 16 to 18 in Tokyo. It wishes to reach an agreement in principle by the end of the year.

[Top of Page]