MEDIA REACTION Q FTA - TOKYO

UNCLAS TOKYO 001461 SIPDIS SIPDIS STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR, EAP/J, EAP/P, PM; USTR FOR PUBLIC AFFAIRS OFFICE; TREASURY FOR OASIA/IMI; SECDEF FOR OASD/PA; CP BUTLER OKINAWA FOR AREA FIELD OFFICE; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR E.O. 12958: N/A TAGS: OIIP KMDR KPAO JA SUBJECT: MEDIA REACTION Q FTA - TOKYO LEAD STORIES: Wednesday morning's economic daily Nihon Keizai front-paged PM Abe's telephone conversation Tuesday evening with President Bush, during which Abe said he would continue to abide by the 1993 Kono statement, which expressed Japan's apology for and reflection on the WWII "comfort women" issue. ¶1. "US-ROK FTA: Time for Japan to Act" An editorial in the top-circulation, moderate Yomiuri commented (4/4): "The US and South Korea have agreed to conclude a free trade agreement (FTA). It is urgent for Japan to remap its trade strategy so as not to be left behind as the rest of the world pursues trade liberalization.... The opening of the South Korean rice market, a sensitive issue for Japan as well, was excluded from the FTA, prompting some observers to call the agreement a 'small accord' that represents a compromise between the two countries. Nonetheless, the conclusion of this pact will have a major impact on Japan, which has yet to seal an FTA with the US or South Korea.... Although it will likely take time for the US and South Korea to coordinate differing views at home, Japan cannot sit idly by as the rest of the world moves to conclude FTAs and economic partnership agreements.... Farm issues always stand in the way of trade negotiations, and the GOJ remains unable to do anything due to domestic resistance to the opening of the agricultural market. Given the exclusion of the sensitive rice issue from the US-ROK FTA, Japan should pursue negotiations with Australia, an exporter of agricultural products." ¶2. "US-ROK FTA: Japan Urged to Make a Decision" The moderate Tokyo Shimbun editorialized (4/4): "The US and South Korea have agreed to conclude an FTA, making the deal in the face of strong opposition at home in both countries. Japan has fallen behind in such negotiations, and the GOJ needs to show strong leadership in promoting trade liberalization.... Having learned about the exclusion of the sensitive South Korean rice market from the US-ROK FTA, some in Japan may think the same issue could also be shelved when concluding such accords. This idea, however, is not a healthy one. Japan should prepare for trade liberalization while strengthening the international competitiveness of its agricultural sector. Consumers are well aware of the tastiness of Japanese rice. Both farmers and those concerned with agriculture should deal with trade liberalization in a confident and forward-looking manner." SCHIEFFER