Mar 23, 2012

Asia - Japan, China, S. Korea agree on investment pact

The Japanese government said Thursday it has concluded negotiations with China and South Korea for a trilateral investment accord, a prerequisite for a broader free trade agreement among the three Asian economies.

Japan aims to sign the investment accord with the other two countries at a summit meeting of Japanese, Chinese and South Korean leaders, scheduled to be held in May in China. It hopes to pass the treaty through the Diet for implementation in 2013. The conclusion of negotiations has also paved the way for the start of talks on the trilateral FTA. Tokyo wants to reach an agreement with Beijing and Seoul also in May to start talks on the FTA.

Japan and China had already finalised an investment treaty in 1989. However, the Japan-China-South Korea investment accord includes new provisions such as the protection of intellectual property rights and prohibition of demand for technology transfer.

The new accord will be advantageous to Japanese companies, as investments in China will become easier.

"The accord will create the first legal framework in the economic field among the three countries--Japan, China and South Korea," said Chief Cabinet Secretary Osamu Fujimura at a press conference Thursday.

News Desk
The Yomiuri Shimbun

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