KEIDANREN SUPPORTS FTA WITH GCC STATES

The Nihon Keizai Shinbun reports that Keidanren, the Japanese business federation, has formally indicated its intention to sign a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC). The GCC consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

Japan’s sudden interest in an FTA agreement with Persian Gulf countries seems to have sprung from two sources.

1) Higher oil prices have alarmed Japanese business leaders, and they want to ensure that Japan will continue to receive sufficient oil supplies. Indeed, they would like sign an agreement in which—during an emergency—Japan would receive oil in preference to other customers.

2) The GCC is now tightening economic relations with countries like the United States and China, and Japanese business leaders are worried that they are falling behind.

To date, Japan has either concluded, or is very close to concluding, FTA deals with Singapore, Mexico, the Philippines, Malaysia, and Thailand. Early negotiations with Indonesia are also now in progress.