Japan's 'fast forward' trade to benefit Brunei
By a Special Correspondent

According to senior Japanese government officials, Japan as well as Brunei are keen to further strengthen their bilateral trade and investment sectors, while enhancing multilateral economic relations through Apec, WTO and Asean plus three forums.

At present Brunei enjoys a very favourable trade balance with Japan.

For instance, ninety percent of Liquefied Natural Gas (LNG) and twenty seven percent of crude oil produced in Brunei are exported to Japan.

Speaking to the Borneo Bulletin, the Deputy Director of South East Asia Division at the Ministry of Foreign Affairs Ms Matsuda said there has been a positive and steady growth in bilateral economic ties between the two countries.

Ms Matsuda, who in 1997 accompanied the former Japanese Prime Minister Hashimoto on his official visit to Brunei, lauded the Sultanate's efforts in diversifying its oil-based economy, which she hoped will encourage more trade and investment opportunities.

Deliberations on the current economic and trade relations will invariably take an upward swing when Brunei hosts the Apec summit in a few weeks time.

Pertinent pre-summit issues were reportedly discussed last week at a Japan-Brunei bilateral between His Majesty the Sultan and Yang Di Pertuan of Brunei Darussalam and the Japanese Prime Minister Yoshiro Mori when they met in Seoul during the Asem summit.

Meanwhile Japan is currently forging ahead with a fast-forward scheme aimed at encouraging freer trading arrangements that could in the long run energise the process of globalisation and liberalisation which are foremost on the Apec agenda.

In a landmark deal that is scheduled to be finalised in 2001, Japan and Singapore have formally agreed to launch negotiations on a bilateral Free Trade Agreement (FTA).

The Prime Ministers of Japan and Singapore met in Tokyo a few days ago to discuss the areas of the projected deal.

This agreement in its very essence marks a shift in Japan's avowed trading policy, which hitherto has been based on multilateral framework like the World Trade Organisation (WTO).

Official sources in Tokyo however, believe that with many countries engaging in regional FTAs amid rabid globalisation, it was time that Japan too sought such regional arrangements that could enhance free trade.

Instead of impeding the WTO, the new FTA would instead supplement and energise the globalisation process, sources explained.

The objective of FTA would be to eliminate barriers such as tariffs, thereby promoting bilateral economic growth, investments and employment opportunities.

So long as the FTAs meet the criteria of WTO which upholds free, indiscriminate and multilateral trade, they could be regarded as 'supplementary' agreements, sources pointed out.

The Japan-Singapore FTA once finalised, will perhaps be a forerunner to many other such FTAs in this region.

Brunei may well consider similar pacts to fortify its own free trading goals.

Japanese officials are of the opinion that enhanced free trade could revitalise Japan's sluggish economy, which faces a demographic dilemma of an aging community compounded by a falling birth rate.

Tokyo has also been actively advocating an Asian currency swap scheme aimed at improving regional trade and economic progress, while safeguarding economies faced with balance of payment problems, as well as steering clear of currency crises.

In short it is aimed at eliminating any recurrence of any Asian financial crisis , the rigours of which are still plaguing some of the countries in this region.

Further discussions on this issue are expected during the upcoming Apec summit in Brunei and later when Asean plus Three (Japan, China and S.Korea) meet in Singapore at Asean talks.

Courtesy of Borneo Bulletin