Japan tipped to open up protected sectors

By KARYN SCHERER

A senior Apec trade official believes Japan may finally be softening its stance on opening up the most protected areas of its economy.

In Auckland yesterday, Mexico's director-general for multilateral and Asian trade affairs, Gerardo Tralosheros, said he believed Mexico was close to "cracking the nut" in its trade talks with Japan.

While New Zealand officials remain sceptical about Japan's willingness to include such sensitive sectors as agriculture in any trade deals, Tralosheros said he was encouraged by its keenness to negotiate.

Japan already has a free trade agreement with Singapore and is formally studying one with Korea.

Although it has not yet begun formal negotiations with Mexico, Tralosheros said it appeared quite likely a deal would be struck.

"I think for the Japanese this is seen as key because they need to mobilise their political arena in order to move forward, including those sectors that are most protectionist, as part of the whole reform process."

Tralosheros is responsible for co-ordinating Mexico's participation in Apec (the Asia-Pacific Economic Co-operation forum) and the World Trade Organisation, as well as its trade negotiations with Asia, Africa and the Middle East.

His visit to NZ, with other Mexican officials, is intended to pave the way for Apec meetings this year in Mexico.

The main meeting in October will cover issues such as the impact of anti-terrorism measures on trade and the role of micro-enterprises, but it is Mexico's determination to improve the effectiveness of Apec that has most encouraged New Zealand officials.

Widely criticised for its slow progress towards its free trade goals, Apec will for the first time this year commission independent studies of individual economies to measure their progress.

New Zealand is one of several economies that will come under scrutiny next year.

Tralosheros said stronger peer pressure was definitely needed.

"We are breaking new ground in this regard because peer reviews have tended to be too amicable in the past. We need more rigour in the examination."

While acknowledging that trade between New Zealand and Mexico was not very impressive, Tralosheros said he was encouraged by recent efforts to rekindle business relationships.

As for the possibility of a bilateral trade deal with New Zealand, it was "something in the back of our minds".