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Japan PM brushes off skepticism over free trade

Published 11/23/2008, 08:36 PM
Updated 11/23/2008, 08:38 PM

By Chisa Fujioka

LIMA, Nov 23 (Reuters) - Japan tried to brush off skepticism on Sunday over its commitment to a breakthrough in global trade talks given its politically sensitive farm sector, saying the financial crisis should not fuel protectionism.

Prime Minister Taro Aso and other leaders at a weekend meeting of the Asia-Pacific Economic Cooperation (APEC) forum urged free trade and supported a push to revive the long-stalled Doha round of trade talks before the year's end.

But doubts remained over whether Tokyo is willing to open up heavily protected markets such as rice, wheat and dairy products.

"We should absolutely make an effort to conclude the Doha round. The United States is also supporting this," Aso told a news conference after the APEC meeting.

A meeting last week of Group of 20 major world economies, which Japan took a part in, made similar calls for seeking agreements on contentious farming and manufactured goods in the Doha round talks.

The Doha round was launched in the Qatari capital in 2001 to free up world trade, but negotiations have suffered multiple setbacks on clashes between rich and poor nations and importers and exporters.

Aso expressed concern that the financial crisis would be used as an excuse for countries to backtrack on not only free trade, but also on key global issues like fighting climate change.

But he also said a breakthrough in free trade talks hinged not only on Japan alone and said Tokyo would still have its say in negotiations.

"We need to of course make assertions when necessary and protect what we need to," he said.

Japan, not wanted to be left behind in a global wave of bilateral and regional trade deals, has signed a flurry of free economic partnership agreements in recent years, but has been cautious of entering into pacts with major food exporters out of concern for its domestic farm industry.

Negotiations with Australia since last year for a free trade deal have been slowed by Japan's reluctance to liberalize its agricultural sector, with rice, beef and sugar -- all considered sensitive items.

Farmers have long supported the ruling Liberal Democratic Party but analysts say less government protection of the industry could make it more globally competitive and help weak regional economies recover.

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