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177602
Sun, 04/24/2011 - 19:36
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Japan, China, S. Korea see free trade as important for quake recovery

TOKYO (Kyodo) - The trade ministers of Japan, China and South Korea agreed Sunday that ensuring the smooth flow of goods and people in Asia is important for Japan's recovery from the March 11 earthquake and affirmed the need to step up efforts to swiftly conclude negotiations for a trilateral pact to facilitate investment.
During a series of talks in Tokyo, Japanese trade minister Banri Kaieda called on his counterparts from the two countries to react ''calmly'' regarding measures to restrict Japanese farm and other imports amid radiation fears triggered by the ongoing crisis at the Fukushima Daiichi power plant, but his counterparts insisted that such restrictions are for the safety of their people, Japanese officials said.
The one-day gathering involving Kaieda, Chinese Commerce Minister Chen Deming and South Korean Trade Minister Kim Jong Hoon was aimed at laying the groundwork for an upcoming two-day trilateral summit to be held in Tokyo from May 21.
In a joint statement issued after the trilateral meeting, the three ministers acknowledged that the quake, which mainly hit northeastern Japan, has disrupted supply chains across the three countries and globally, and that Japan's recovery is ''in the interests of all the three countries.''
''We...are also reminded at this juncture that the maintenance and development of a free and open trade system will not only enormously support the recovery process of the stricken region of Japan but also effectively secure vigorous and sustainable growth of all three countries,'' it said.
On the investment treaty negotiations, which started in 2007 and are believed to be at the final stage, the ministers agreed on the need to make further efforts to reach a substantive agreement ''as early as possible,'' according to the statement.
The three countries are already bound through bilateral investment treaties, but Japan is seeking a three-way accord including rules not stipulated in the bilateral Japan-China treaty, such as on intellectual property protection.
The trade ministers also welcomed the progress made on an ongoing study involving government officials, business and academic participants to explore the possibility of signing a three-way free trade agreement, and agreed to accelerate the work.
But differences were revealed over the issue of import restrictions on Japanese items, with Kaieda asking China and South Korea to take actions ''based on scientific grounds,'' and his counterparts saying they are doing so by placing priority on the safety of their people.
The Japanese economy, trade and industry minister told reporters after the meeting, ''Restrictions based on scientific grounds cannot be helped, but we are hoping to see an end to regulations based on rumors (about radioactive contamination) as soon as possible by providing the latest information to the countries.''
The government is implementing measures to ensure no contaminated farm products are sold at home or abroad under what it calls ''stringent criteria,'' but many countries have set import restrictions or conducted radiation screening on Japanese imports.
China has officially banned food and agricultural imports from Fukushima, Tokyo and 10 other prefectures in Japan, and requires items from other prefectures to be accompanied by documents issued by the Japanese government including radiation inspection and place of origin certificates.
But Japan has not finished preparations for the issuance of such documents to China, a farm ministry official said Friday. Sources familiar with Sino-Japanese relations have described the situation as China effectively blocking all Japan-made food and farm products.
South Korea, for its part, has suspended imports of spinach and some other items from Fukushima and four nearby prefectures, and plans to ask for similar government-issued radiation safety documentation from May 1 for imports of food from the five plus eight other prefectures, according to the Japanese farm ministry.
Kaieda expressed his regret about the country's worst nuclear accident triggered by the March quake and tsunami, and sought understanding from the neighboring countries over Japan's recent dumping of a massive amount of low-level radioactive water into the Pacific Ocean to deal with the crisis at the Fukushima nuclear power plant.
''I told (the ministers) that there was no choice but to do so,'' he said.
As for bilateral issues, Kaieda said that he and Kim agreed that the two countries should step up moves toward the resumption of bilateral free trade negotiations, which have been stalled since November 2004 over issues such as tariff reduction.
In separate talks with Chen, Kaieda called on China to deal ''appropriately'' with the rising price of rare earth minerals, over which Beijing is tightening its control.
China supplies more than 90 percent of the world's rare earth minerals and Japan is largely dependent on China for supply of the strategically important resources, which are used in the production of high-tech products.
The trade ministers' gathering is part of a series of trilateral meetings that Japan is hosting this year.
About a week after the magnitude 9.0 quake, the foreign ministers of the three countries met in Kyoto and agreed to boost their cooperation in responding to disasters and securing the safety of nuclear power generation.
The three-way annual summit, which was launched in 2008, is aimed at promoting cooperation among the three major Asian economies in 13 areas including trade, energy, environment, tourism, technology, logistics, health and disaster preparedness.

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