A Done-Deal On BJEPA
By Za'im Zaini

Bandar Seri Begawan - Since the official launching of negotiations by the foreign ministers of Brunei Darussalam and Japan, negotiators have reached an agreement in principle on the main elements of the Brunei-Japan Economic Partnership Agreement (BJEPA).

The BJEPA will be Brunei Darussalam's first bilateral trade agreement and reflects the importance of Japan to Brunei Darussalam as a close neighbour and trading partner. Japan is also one of Brunei's largest oil and gas market. Brunei LNG has already successfully made the 5000th delivery of LNG to its customers in Japan. The BJEPA was discussed previously on the sidelines of the 11th Asean summit in Kuala Lumpur and the Japan Asean Summit in December last year between His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam and then Japanese Prime Minister Junichiro Koizumi.

The agreement will build upon strong economic ties and will facilitate the free flow of goods, investment and services. Besides removing tariff barriers between the two countries the BJEPA also aims at enhancing economic exchanges and at the same time harmonises regulations on investments and services.

It will enhance cooperation in energy, human resources development and capacity building. It will also create greater opportunities for the private sector and improve access to the Japanese market.

An outline towards the EPA was agreed upon during discussion between the Brunei and Japanese Government in February and April this year. This talk has included other areas such as "Trade in Goods, Customs Procedures, Trade in Services, Investment, Energy and Resources, Government Procurement, Intellectual Property Rights and Competition Policy.

Only last year, the Brunei National Petroleum Company Sdn Bhd (PetrolcumBRUNEI) with two major Japanese companies, Mitsubishi Gas Chemical Company Inc (MGC) and ITOCHU Corporation (ITC) signed an agreement to construct a methanol plant and produce methanol at the Sungai Liang Industrial Park in the Belait District aimed at producing methanol to cater for the booming Asian market.

Japan remains Brunei LNG's main customer accounting for about 11.1percent of Japan's total LNG imports with buyers in Japan including Tokyo Electric Power, Tokyo Gas and Osaka Gas.

Brunei and Japan have agreed to conclude BJEPA negotiations on all outstanding matters as soon as possible.-- Courtesy of Borneo Bulletin

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