Asian Powers Advance Tripartite FTA

by Mary Swire, Tax-News.com, Hong Kong

26 May 2011

In their fourth joint leaders’ meeting, and the first since Japan’s earthquake and tsunami in March, Japan’s Prime Minister Naoto Kan, China’s Premier Wen Jiabao and South Korea’s President Lee Myung-bak have agreed to increase their efforts to conclude a tripartite free trade agreement (FTA) between their countries.

A meeting of the countries’ trade ministers last month had agreed to accelerate the work of a current joint study on a tripartite FTA. The ministers had then expressed the belief that, with China, Japan and South Korea accounting for around 20% of the world’s total economic output, not only Japan’s recovery, but also the recovery of Asia as a whole, could best be served by securing the maintenance and development of a free and open trade system in the region.

Following discussions on the FTA since 2002, and a feasibility study that was completed in 2009, joint studies have been progressing between government, business and academic representatives since last year. Kan, Wen and Lee have now agreed, however, to complete those studies by the end of 2011. They also agreed to complete subsequent FTA negotiations for early ratification as soon as possible.

In the spirit of increasing further cooperation between their countries, the leaders also reaffirmed the growing importance of a trilateral investment framework. They therefore also confirmed that a substantial agreement in the negotiation of the proposed trilateral investment agreement should be concluded as early as possible.

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