Japan, Australia resume talks on free-trade deal
Tuesday, August 7, 2007
JAPAN and Australia yesterday resumed talks aimed at threshing out a free-trade deal that would secure vital energy supplies for Asia's largest economy but also risk angering its farmers.
The two countries already held a first round of discussions in April on a possible free-trade pact, which would be Japan's first with a major agricultural exporter.
The four days of trade talks this week in Tokyo will cover various issues including trade in goods, services, intellectual property, government procurement and energy, an official at the Japanese trade ministry said.
Australian Prime Minister John Howard has long pushed for a free-trade deal with Japan, Australia's top trading partner, and has also opened talks on a trade pact with China.
Japan closely protects its politically powerful farmers, arguing that agriculture is integral to the national culture.
A deal with Australia would risk further inflaming Japanese rural communities that deserted the ruling party in recent upper house elections.
Analysts say that the government may tread more carefully with future free-trade deals to try to avoid a defeat in lower house elections due by 2009 at the latest that would oust the ruling party from power.
With the main opposition Democratic Party of Japan now in control of one house of parliament, the government is also expected to find it harder to push through its farm reform policies, experts say.
Japan's agricultural ministry earlier this year warned that domestic production of wheat, sugar, dairy products and beef four major Australian products would be seriously damaged if import tariffs were eliminated.
However, Japan is heavily dependent on imports for its energy needs and a free-trade deal could help it secure easier access to Australia's vast supplies, most notably uranium for use in nuclear power generation.
The Japanese side in this week's talks is led by deputy foreign minister Masaharu Kohno.
The Australian delegation, on the other hand, is headed by Peter Gray, deputy secretary at the Department of Foreign Affairs and Trade.
AFP
The two countries already held a first round of discussions in April on a possible free-trade pact, which would be Japan's first with a major agricultural exporter.
The four days of trade talks this week in Tokyo will cover various issues including trade in goods, services, intellectual property, government procurement and energy, an official at the Japanese trade ministry said.
Australian Prime Minister John Howard has long pushed for a free-trade deal with Japan, Australia's top trading partner, and has also opened talks on a trade pact with China.
Japan closely protects its politically powerful farmers, arguing that agriculture is integral to the national culture.
A deal with Australia would risk further inflaming Japanese rural communities that deserted the ruling party in recent upper house elections.
Analysts say that the government may tread more carefully with future free-trade deals to try to avoid a defeat in lower house elections due by 2009 at the latest that would oust the ruling party from power.
With the main opposition Democratic Party of Japan now in control of one house of parliament, the government is also expected to find it harder to push through its farm reform policies, experts say.
Japan's agricultural ministry earlier this year warned that domestic production of wheat, sugar, dairy products and beef four major Australian products would be seriously damaged if import tariffs were eliminated.
However, Japan is heavily dependent on imports for its energy needs and a free-trade deal could help it secure easier access to Australia's vast supplies, most notably uranium for use in nuclear power generation.
The Japanese side in this week's talks is led by deputy foreign minister Masaharu Kohno.
The Australian delegation, on the other hand, is headed by Peter Gray, deputy secretary at the Department of Foreign Affairs and Trade.
AFP
Business Besides Oil
