China could beat Japan on ASEAN free-trade pact: Malaysian official

Asian Economic News, May 17, 2004

WASHINGTON, May 10 Kyodo

Malaysian trade minister Rafidah Aziz said Monday that Japan may lose out to China in forging a free trade pact with the Association of Southeast Asian Nations.

In a speech at the Institute for International Economics, a Washington think tank, Rafidah said Japan was ''slow'' in responding to ASEAN's call for establishing a free trade agreement with the region.

''Japan moved in micromillimeters,'' Rafidah said. ''The response from China was much more forthcoming.''

Japan and ASEAN are seeking to liberalize goods and services trade and investment by 2012, while China and ASEAN are trying to establish a free trade area by 2010.

ASEAN has 10 members -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

''We feel time is of the essence,'' Rafidah said. ''We were totally surprised that China was so fast.''

''This is where maybe Japan may lose out to China eventually,'' she said.

As one of problems for negotiations with Japan, Rafidah cited the lack of leadership in the Japanese government.

''There are so many consultations within Japan that I'm not sure who is managing the fort there,'' she said.

Earlier in the day, Rafidah and U.S. Trade Representative Robert Zoellick signed a bilateral trade and investment framework agreement.

''Perhaps this can start the ball rolling for us to discuss further arrangements, even a free trade area,'' Rafidah said in the speech.

A trade and investment framework agreement frequently serves as the basis for a full free trade agreement.