APEC-EAST ASIA: Farm Trade Concerns Unite Japan, South Korea

By Suvendrini Kakuchi Reprint | | Print |

Suvendrini Kakuchi

TOKYO, Nov 8 1995 (IPS) - Japan and South Korea have their own trade disputes and disagree on compensation for Japanese colonisation of Korea, but they will be putting aside their differences when Asia- Pacific leaders discuss farm trade in Osaka next week.

The opening up of agricultural trade, which farm exporters led by the United States and Australia have long been pushing for, is high on the agenda of the Asia-Pacific Economic Cooperation (APEC) summit that opens in the southern Japanese city Nov. 19.

According to Lee Chon Ku, head of the international trade policy bureau of South Korea’s Ministry of Trade, Industry and Energy, Tokyo and Seoul will work closely to exclude agriculture from APEC’s trade liberalisation efforts.

Both the Japanese and the South Korean governments are heavily dependent on the farm vote, and have thus strongly opposed setting any targets on agricultural trade.

In 1993 Japan opened up its rice market to limited imports from the United States and Asia, sparking angry protests from thousands of farmers. Japanese officials are moving cautiously this time, aware that removing more barriers would be politically disastrous.

Washington has urged Tokyo not to further delay a decision on the matter, pointing out that the 1994 APEC summit in Bogor, Indonesia, decided to settle the issue at this year’s meeting.

U.S. officials have warned that avoiding a serious debate on agriculture at the Osaka summit would only show the weakness of the Japanese leadership.

Japan, South Korea, China and Taiwan — the fastest-growing economies in Asia — are seeking special consideration on “sensitive sectors” such as agriculture in APEC’s moves to liberalise trade.

But the United States, Australia, New Zealand, Indonesia, Singapore and Thailand, among others, insist all sectors should be covered by the regional grouping’s “comprehensive” trade principle, without exception.

South Korea has played down APEC’s conflicts over farm trade. “We should not judge whether or not APEC has made tangible progress only by looking at sensitive areas such as agriculture, while fruitful results have already come out in other areas,” Lee said in a recent interview with the Japanese media.

Japanese officials have voiced similar views. “I cannot fully support the argument that APEC talks would become meaningless if the farm issue is not settled,” said Hiromoto Seki, Japan’s ambassador in charge of affairs related to the APEC forum.

The media and other APEC observers should not concentrate on the contentious issue of agriculture, he said at a recent press conference here. “It is necessary to focus more on such areas as the environment, global food problems and crop planting.”

Regional analysts say South Korea’s support for Japan, despite their own trade and political conflicts, illustrates the subtle changes that have taken place in the world economic order as a result of the dynamic growth recorded in the Asia-Pacific.

Both nations are increasing trade within Asia, particularly with their East Asian neighbours. They also share similar problems with the United States — high trade surpluses in their favour, dumping accusations, and targets set by Washington aimed at breaking barriers that protect their markets.

In September, South Korea was forced to reach an agreement with Washington to expand its auto imports. U.S. pressure also pushed Seoul to a commitment to import 51,000 tonnes of rice this year despite fierce opposition by Korean farmers.

Such problems have made Asia increasingly attractive for both countries, says Korea University professor Wan Soon Kim.

“Most dynamic Asian economies now rely on their own internal markets and on the intra-Asian market for growth. The importance of the U.S. market has diminished as a source for the economic growth of East Asia economies,” he says.

Trade among East Asian countries accounted for 43 per cent of total Asian exports in 1993, up from 31 percent in 1986.

Against such a backdrop South Korea, echoing Japanese sentiment, wants to make sure APEC does not turn into another bargaining chip for the United States.

“APEC is a fragile union and was originally established to promote economic cooperation in the Asia-Pacific region. If every APEC member takes one step back and thinks about what APEC truly intended to realise at its outset, some pending issues will be resolved easily,” said Lee.

Experts argue that APEC is totally different from the North American Free Trade Area (NAFTA) which is on the verge of becoming an exclusive trading bloc.

“If APEC becomes like NAFTA, it would be incompatible with the global system,” argues Kim, adding this would be a nightmare for the South Korean economy.

“APEC should be a multilateral trading system for the growth of the Asia-Pacific,” he says. “It should also have the capacity to influence the United States not to make NAFTA an inward-looking discriminatory regional trade arrangement.”

APEC-EAST ASIA: Farm Trade Concerns Unite Japan, South Korea

By Suvendrini Kakuchi Reprint | | Print |

Suvendrini Kakuchi

TOKYO, Nov 8 1995 (IPS) - Japan and South Korea have their own trade disputes and disagree on compensation for Japanese colonisation of Korea, but they will be putting aside their differences when Asia- Pacific leaders discuss farm trade in Osaka next week.
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