Fearing that Japan will be left behind in trade liberalization efforts, the Hatoyama administration is gearing up to promote negotiations to sign economic partnership agreements (EPA) with its major trading partners, particularly the United States and the European Union. The government--especially the trade and foreign ministries--is enthusiastic about speeding up the EPA process, partly because Japan lags behind "little tiger" South Korea in this area. While moves by Japan to reach EPAs with the United States and the EU are still being studied by the private sector, South Korea has taken the bold step of opening up its farm market. It is ready to sign a free trade agreement--a main pillar for an EPA--with both the United States and the EU, respectively. The farm market represents a major obstacle in Japan's efforts to expedite EPAs because the farm ministry wants to protect the domestic agricultural industry. That explains the absence of an immediate prospect for negotiations to start on signing an EPA with the United States. Business leaders from the EU and Japan issued a joint report in July 2008 after studying the possibilities of an EPA. But it did not lead to the start of official negotiations. An EPA that Japan signed with the Association of Southeast Asian Nations took effect in December 2008. But since then, there has been no tangible progress on this front, except for the fact that EPA negotiations with Peru have started. This is because Japan has run out of countries with which it is easy to negotiate and come to terms in opening Japan's farm market. To break the impasse, the Ministry of Economy, Trade and Industry and other government organizations intend to draw up an EPA strategy. This will be a basic policy plank of the Hatoyama administration. "We want to compile an EPA strategy as soon as possible," said a top trade ministry official. In doing so, the Hatoyama administration will try to establish a midterm policy with an eye to opening negotiations with the United States and the EU. The industrial sector has lobbied strongly for the start of such talks with both parties. A senior Foreign Ministry official expressed hope the strategy will be in place before Japan resumes EPA negotiations with Australia this spring. The two countries began talks on an EPA in April 2007, but have been unable to reach agreement. This is mainly due to Australia's insistence that Japan open up its farm market in a variety of areas. The trade and foreign ministries are in a hurry to draw up the strategy because they want to break the deadlock in negotiations with Australia as well as South Korea and India. Though Prime Minister Yukio Hatoyama met with Indian counterpart Manmohan Singh in New Delhi last month, the two leaders merely agreed to speed up EPA talks. Negotiations with South Korea, which began in December 2003, have been stalled since November 2004, due to South Korean concerns that an EPA will cause its trade deficit with Japan to worsen. Reaching an EPA with China, now Japan's main trading partner, is being studied by the private sector within a Japan-China-South Korea framework. In October, Foreign Minister Katsuya Okada proposed the establishment of a committee where he and the ministers of trade, farm and finance discuss measures to promote EPAs. The committee met in November and December. However, many officials say it is up to the farm ministry to decide whether such discussions can lead to a positive conclusion. There is also another concern: the Upper House election this summer. Some officials are worried about losing the farm vote. For this reason, the administration may not be able to enforce a strategy that will cause Japan to open up the country's agriculture market.
Source: IHT/Asahi, January 1,2010
Though demand has been picking up, electronic parts manufacturers remain wary about business conditions in the January-March quarter, a Nikkei survey shows. The survey, covering a total of 30 firms that make electronic parts or manufacturing equipment for such parts, found that 26% see the business climate worsening or deteriorating sharply in the January-March period. This draws a sharp contrast against current conditions, as more than half said conditions were improving or had improved sharply in the current quarter. Among the electronic parts makers, 40% believe their business will worsen in the coming quarter, with an equal proportion expecting no change. Six of eight semiconductor makers said they anticipate no change. But firms that make equipment for manufacturing electronic parts are highly optimistic, with 75% forecasting an improvement in the next quarter. Capital investments have resumed among their Asian customers.
Source: The Nikkei Dec. 31, 2009
The Office of Commercial Affairs,
Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th