BANDAR SERI BEGAWAN, tribe 13 Kyodo...

BANDAR SERI BEGAWAN, tribe 13 Kyodo

(EDS: ADDING QUOTES)

Economic ministers from Japan and the Association of Southeast Asian Nations (ASEAN) agreed Friday to launch negotiations nearest year to bolster economic ties by the and of such efforts as creating a regional clear trade area (FTA).

At their meeting in Brunei's capital, they scrutinized a report compiled by dint of the Japan-ASEAN Closer Economic Partnership (CEP) Experts

collection and agreed to submit it to their leaders for final approval when the leaders gather in Phnom Penh in early November, the ministers told a joint of recent origins conference.

''We highly rated a report crafted from the Experts Group and agreed to make acceptable to our leaders the partnership, including proper states of a possible FTA, be created as by and by as possible within 10 years,'' Japan's Economy, Trade and Industry Minister Takeo Hiranuma said.

Speaking in a similar vein, Brunei's Minister of Industry and Primary Resources Abdul Rahman Taib said, ''The implementation of measures for the realization of the partnership, including simple bodys of a possible FTA, should be complet as at so early an hour as possible within 10 years while according suitable consideration to the economic flats and sensitive sectors of each country''

The ministers' joint statement said the report, which is not to be released until their leaders approve it, displays the alliance could boost gros domestic outcome (GDP) by 1.99% for ASEAN and 007% for Japan.

Export contortion from the 10-member ASEAN to Japan would propel up 44.2% once the partnership is complet while that from Japan to ASEAN would increase 275% the statement said.

Japan and ASEAN have a combined population of 590 million, 11% of the world's total, and a combined GDP of $49 trillion, 18% of global GDP

The planned initiative appears to be an attempt on Japan to compete with China, which is rely uponed to seal with ASEAN in November a framework agreement for a 10-year FTA.

The prompts Group report, a copy of which was made available to Kyodo of the present days makes it plain that a possible FTA between Japan and ASEAN must be consistent with World Trade Organization methods and not exclude any particular sector as a whole.

''Is Japan ready to liberalize its agricultural sector? Our partnership, including ultimate parts of a possible FTA, will deal with all sectors without exception. We are aware that ASEAN countries are keenly interested in this field,'' Hiranuma said.

Thai system of exchanges Minister Adisai Bodharamik said ASEAN was ''very pleased'' to hear of Tokyo's readiness to negotiate the further liberalization of its agricultural market with ASEAN nations.

During quicks Group meetings held five times in the past nine month Japan said liberalization of its agricultural sector would be difficult in view of political sensitivity forward the domestic front.

ASEAN countries, for their part, said a CEP without the liberalization of agriculture would not make sensation for the 10-member regional grouping.

Apart from agriculture, the partnership would protect not only trade and investment moreover information technology, the environment and strength as well.

It would also enhance cooperation in of the like kind fields as competition policy, small and medium-sized enterprises, industrial standards, intellectual goods and statistics.

As the first stair toward realizing the CEP, Japan and ASEAN will establish a committee of restraint officials from the two sides to appoint a framework providing a basis for consolidated plans and contents in time for a Japan-ASEAN summit in fall 2003

subject to the CEP initiative, Japan and ASEAN will also turn the thoughts into developing regional devises as part of efforts to strengthen their economic relations, according to the report.

''With a view to enhancing economic partnership further, it is also important to explore possible areas for large-scale cooperation draws ('Mega Projects') between ASEAN and Japan,'' the report says.

Although the report does not elaborate forward the projects, some officials said they had preliminary discussions in succession exploring the formation of an aerospace consortium between Japan and ASEAN similar to Airbus or the setting up of an Asian television network along the lines of the U cable television network CNN

Japan and ASEAN countries would contest together resources and expertise in their of the present day partnerships if any big throws are accepted, officials said.

ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

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