Japan open to compromise on FTA with Asean – Favila

Japan is willing to compromise on the percent share of goods that should be given tariff reduction, a decision that has removed the major impediment on the creation of the ASEAN-Japan Free Trade Agreement (FTA).

"Japan agreed on the list of products, the kind of tariff reduction schedule and they will provide flexibilities on Cambodia, Laos and Vietnam," Department of Trade and Industry (DTI) Secretary Peter B. Favila said.

"The technical working group will start working on the parameters, the areas to be covered. You can see the details during the forthcoming ministers meeting here in Manila in August," Favila added.

Earlier, Japan said a basic agreement was reached on the modalities of negotiations for goods trade. The agreement was based on their proposal presented to economic ministers of the ASEAN countries in Cebu last January.

ASEAN economic ministers met last week in Brunei for the Asean Economic Manager’s retreat. The leaders will again meet in Manila in August.

The Philippines heads the technical working group for the Japan-ASEAN FTA. Favila   said the country was given until November to finish the proposals.

Japan’s Trade and Industry Minister Akira Amari said they are looking at wrapping up the discussions by August in order for their leaders to sign the proposed Comprehensive Economic Partnership Agreement in November on the sidelines of the annual ASEAN summit that will be held in Singapore.

Meanwhile, Favila said the talks for the ASEAN European Union FTA is underway as all the parties have already come to terms that the EU will deal with all 10 major countries as a group.

More than 30 civil society movements and organizations from the ASEAN and Europe have expressed concerns on the FTA saying the EU appears to be promoting anti-development policies.

They said the decision to launch these trade negotiations has occurred without prior meaningful public consultation, either with elected representatives or civil society in any of the countries concerned.

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