Envoy plugs trade pact with Japan

In the face of mounting economic competition from China, forging a free-trade agreement (FTA) between Taipei and Tokyo would benefit both sides by containing an economically strong China, Taiwan's top representative to Japan said yesterday.

Lo Fu-chen (羅福全), representative of the Taipei Economic and Cultural Representative Office in Japan, reported to the foreign and overseas Chinese affairs committee in the Legislative Yuan yesterday on Taipei-Tokyo ties in the wake of Japan's recent proposal on what some media have termed the "ASEAN plus five" initiative.

The "ASEAN plus five" initiative, put forward earlier this month by the Japanese government, is an idea to forge a free-trade zone among ASEAN countries plus Japan, Hong Kong, China, Taiwan and South Korea.

Regional observers have noted that Japan's initiative was triggered by China's agreement in November with ASEAN to establish a free-trade area within 10 years.

Lo yesterday highlighted the timetable for the feasibility study on forging a Taipei-Tokyo bilateral FTA, which is being carried out by non-government units on both sides -- namely through the respective committees of the East Asia Businessmen's Conference (東亞經濟會議).

The interim report on the study is scheduled to be available in July, Lo said, with the conclusion of the study expected to be announced at the East Asia Businessmen's Conference slated to be held in Japan in December.

Taiwan's ambassador-at-large Jeffrey Koo (辜濂松), in his capacity as the chairman of the conference's Chinese committee, as well as Kosai Akio, in his capacity as the chairman of the conference's Japanese committee, have been jointly in charge of the feasibility study.

Kosai Akio has also served as the one of the vice chairmen of Japan's powerful Federation of Economic Organizations, or Keidanren.

The East Asia Businessmen's Conference, a private channel between Taipei and Tokyo since the two sides severed diplomatic ties in 1972, is to celebrate its 30th birthday this year.

Taipei's de facto ambassador to Tokyo admitted that success of an FTA between Taipei and Tokyo is contingent upon whether Japan is able to forge an internal consensus on the issue, given varied opinions held by different ministries.

While Japan's economic ministry is keen on the issue, the Japanese foreign ministry has held a relatively passive stance on the possibility of forging a free-trade pact between Taiwan and Japan for fear of irritating China, Lo said.

Beijing has expressed misgivings on Taiwan's recent move to forge FTAs with the country's regional partners, terming the initiative as a way to break Taipei's political isolation, observers have noted.

The Japanese foreign ministry intended to urge the government to sign the FTA with Taiwan after other regional powers have done so, Lo said.

Lo said it's key for Taiwan to persuade the Japanese foreign ministry that a free-trade pact between Taipei and Tokyo could serve as an instrument to "effectively contain" the expansion of China's economic power.