Miyazawa, Lee agree to push forward with Japan-Singapore FTA

Asian Economic News, Jan 22, 2001

TOKYO, Jan. 16 Kyodo

Japanese Finance Minister Kiichi Miyazawa and visiting Singapore Deputy Prime Minister Lee Hsien Loong on Tuesday confirmed they would push forward with the proposed free trade agreement (FTA) between the two countries, a Japanese official said.

Lee told Miyazawa that he values Japan's initiative over the issue, and also suggested that Japan launches FTAs with the other members of the Association of Southeast Asian Nations, according to the official.

Miyazawa, however, showed a rather cautious attitude, citing the agriculture and fisheries issues which would stand as obstacles to such a move, the official said.

The two sectors are politically sensitive issues in Japan, with Japanese farmers and fishermen, big supporters of the ruling Liberal Democratic Party, strongly opposed to liberalization.

The envisaged Japan-Singapore pact would focus on the liberalization of trade in goods and services, investments and the movement of people between the two nations.

In addition to the FTA, Miyazawa and Lee exchanged opinions on Asian economies, and discussed the declining birth rate and other topics of concern to both countries, the official added.

The idea of an FTA between Japan and Singapore was first proposed when the late Japanese Prime Minister Keizo Obuchi, who died last April, and Singapore Prime Minister Goh Chok Tong met in Tokyo in December, 1999.

The Japanese Ministry of Economy, Trade and Industry said Monday that the two countries are scheduled to hold the first round of informal preparatory talks in Singapore from Tuesday to Thursday.

An FTA with Singapore would be the first such agreement for Japan, which is the only major industrialized country that does not have any free-trade arrangements with its economic partners.

Lee arrived in Tokyo on Sunday for a four-day visit.