* Japan urges APEC to embrace trade liberalisation
* APEC discusses vast free trade area for region
* Japanese farmers vow to oppose U.S.-led trade initiative
By Yoko Nishikawa
YOKOHAMA Japan, Nov 10 (Reuters) - Japan on Wednesday urged Asia-Pacific economies to trade more openly as a way to lift the global economy, but immediately faced protests at home from farmers worried their livelihoods would vanish in the process.
Foreign and trade ministers from the 21-member Asia-Pacific Economic Cooperation (APEC) forum began talks in Yokohama, south of Tokyo, on creating a vast free trade area that would link the world's three biggest economies -- the United States, China and Japan-- and some of its fastest-growing emerging markets.
"We need to further promote regional economic integration, which is an important challenge for APEC, and improve the quality of growth to seek sustainable growth in the region. APEC can contribute to the global economy by doing so," Japanese Foreign Minister Seiji Maehara said at the start of talks on Wednesday.
The ministers are meeting ahead of a G20 summit of rich and emerging economies in Seoul on Thursday and Friday, where leaders will seek to soothe deep tensions over global economic imbalances and competitive currency devaluations.
Security tensions are also simmering ahead of the APEC summit in Yokohama on Nov.13-14. Much of the region is wary of a newly aggressive China, and Japan is locked in territorial feuds with Beijing and Moscow.
Besides pondering a future Free Trade Area of the Asia-Pacific (FTAAP), the APEC ministers are expected to express concern about trade protectionism and again declare their support for the long-stalled Doha round of trade liberalisation talks.
"I would like to take one step further toward achieving a FTAAP in Yokohama. To achieve a higher quality of growth, I would like to compile an economic growth strategy with you to promote economic policy harmony and cooperation in the region," Japanese Trade Minister Akihiro Ohata said in an opening speech.
Calls to revive the Doha round have been a feature of the APEC meetings for years.
"I think APEC also needs to discuss how it can play a role in strengthening a multilateral trade system through promoting the WTO's Doha Round negotiations and in continuing to prevent protectionism," Ohata said.
Even as Ohata spoke in Yokohama, thousands of Japanese farmers rallied back in Tokyo to demand their government steer clear of a U.S.-led free trade initiative which would open the heavily protected sector to fierce competition.
They were joined by 140 lawmakers from ruling and opposition parties, most of them -- like the farmers -- wearing headbands saying "Total opposition to the TPP!".
Japan has said it would start talks with other countries about the Trans-Pacific Partnership (TPP), a U.S. initiative, but stopped short of pledging to join formal negotiations due to ruling party worries about damage to politically powerful farmers.
"At this point in time, the Japanese government has no grand design or anything for the farm sector, and if TPP becomes a reality, there will be no more farming in Japan," Kiyoshi Ishii, chairman of an agricultural cooperative, told Reuters at the protest, where some 2,700 people gathered under blue skies.
Japanese business lobbies have urged Prime Minister Naoto Kan to make clear his intention to join TPP talks when leaders of the Asia-Pacific Cooperation (APEC) gather in Yokohama, south of Tokyo, on Nov. 13-14 to discuss a vision of a broad regional free trade area that would link the fast-growing region.
Japanese companies are eager for Tokyo to join the pact, warning that their goods will lose competitiveness and jobs move overseas if the country is left out of the deal.
The TPP started as a trade pact between Singapore, New Zealand, Chile and Brunei, who have since been joined in talks by Australia, Peru, Vietnam, Malaysia, and the United States. It would in principle eliminate all tariffs within the zone.
There is no formal deadline for completing talks, but supporters hope for a deal by the time that Obama hosts the annual APEC leaders summit in Hawaii in November 2011. (Additional reporting by Edwina Gibbs in Tokyo; Writing by Linda Sieg, editing by Jonathan Thatcher)