Wednesday, November 21, 2012

Asian economies aim for trade deal

CHINA, Japan and South Korea started talks on a free-trade agreement vital to an Asia-wide deal in a move to forge closer economic ties even as they spar over disputed islands.
The countries, representing three of Asia’s four biggest economies, will hold the first round of talks early next year, they said in a joint statement.
Those negotiations are key to the Regional Comprehensive Economic Partnership, a 16-nation accord also announced on Tuesday that Southeast Asian countries called “the world’s biggest regional free-trade deal.”
“The missing piece of the jigsaw puzzle as far as Asia is concerned is the agreement among the three Northeast Asian countries,” said John Ravenhill, a professor at Canberra-based Australian National University. “The negotiations that were supposed to have started between those three countries have been put on hold because of the disputes over the South China Sea and other islands.”
Competing visions for an Asia-Pacific trade bloc reflect the struggle for dominance by economic powers over a region that is increasingly a driver of global growth.
US President Barack Obama is seeking to expand trade ties with Asian nations and regain economic influence among countries that are growing more reliant on China in an area that contains sea lanes vital to world commerce.
Last week Secretary of State Hillary Clinton welcomed China and other Asian nations to join the 11-country Trans-Pacific Partnership (TPP) that the US aims to combine with other regional trade agreements to transform global commerce. Thailand and Japan are interested in joining the talks, Ben Rhodes, White House deputy national security adviser, said on Tuesday.
“They’re committed to getting those negotiations concluded with an aim to doing so next year so that they can complete that trade agreement,” he said in Phnom Penh, Cambodia, after Obama met with leaders from countries involved in the TPP talks.
The discussions on trade proceeded even as China’s territorial disputes surfaced at five days of meetings in Cambodia hosted by the Association of Southeast Asian Nations that ended on Tuesday. Obama, who met with Japan’s Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao separately on Tuesday, called the US-Japan military alliance the “cornerstone” of regional security.
“With the increasing severity of the security environment in East Asia, the importance of the Japan-US alliance is increasing evermore,” Noda, who faces re-election next month, said in a meeting with Obama. “I would like to proceed with concrete cooperation to develop our alliance.” Bloomberg News
China has demanded that Japan withdraw from its September purchase of islands known as Senkaku in Japan and Diaoyu in China. Anti-Japan protests have reduced China sales at Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co.
“It’s not good, to be honest,” Qin Gang, a spokesman for China’s foreign ministry, told reporters on Tuesday, referring to his country’s relationship with Japan. “But the reason is not on China’s part.”
Wen downplayed the disputes on Tuesday and urged leaders to focus on maintaining the peace and stability that has underpinned Asia’s economic growth since World War II, according to Fu Ying, China’s vice foreign minister. China has been Asean’s largest trading partner since 2009.
“We do not want to give overemphasis to the territorial disputes and the differences,” she told reporters. “We do not think it’s a good idea to spread the sense of tension in this region.”


No comments:


OTHER LINKS