S Korea, Japan, China To Hold Third Round Of FTA Talks

Chinese Ministry of Commerce spokesman Shen Danyang has confirmed that the third round of talks on the proposed tripartite free trade agreement (FTA) between China, Japan and South Korea, will be held on November 26-29, 2013, in Japan.

He disclosed that, after further preparatory meetings held between the parties on October 22-23 that mainly covered the framework for discussing market access matters, the three countries agreed to hold the third round of FTA negotiations and expressed the hope that the agreement could be concluded as soon as possible.

Following the second round of talks in August this year, it was emphasized that the talks were still considered to be at an exploratory stage, with substantive negotiations still to be undertaken. The discussions were said to be concentrating on establishing an institutional framework for cooperation between the three countries, although there has also been some airing of the possible lowering of tariffs and the difficulties posed by sensitive goods for each country.

However, despite an expectation that the issue of tariffs on sensitive goods and services will be challenging for all three countries, the decision to hold further talks is said to confirm that all three still appear to believe that a deal could be possible, as the mutual benefits arising from a trilateral agreement would be substantial.

With a market of 1.5bn people, the total gross domestic product of the three countries was USD14.3 trillion in 2012, accounting for about one-fifth of world output, while their total trade reached approximately USD5.4 trillion, or 35 percent of total global trade.

At the same time, however, China and South Korea have been pursuing their own separate bilateral FTA talks, after their launch in May 2012, with the seventh round of those talks, which were held in September this year, having, it was said, been successful in completing the first stage of negotiations on an agreement. Japan has also been accepted into the on-going negotiations for an extended Trans-Pacific Partnership, which is being led by the United States.

In addition, all three countries would be members of the proposed Regional Comprehensive Economic Partnership (RCEP), which would bring the Association of Southeast Asian Nation's existing FTAs – with Australia, New Zealand, Japan, China, India and South Korea – into a single comprehensive agreement.

Shen confirmed that a third round of RCEP negotiations will be held in Malaysia in January 2014, and that China would work with the other countries involved to resolve the challenges that will be faced in the negotiation process, and to look for substantive talks and a conclusion of an RCEP agreement as soon as possible.

November 4, 2013

Source