3-way free trade talks to open this year despite islands row

Korea, China and Japan will start talks on a trilateral free trade agreement this year as planned despite uncertainty caused by the Sino-Japanese terrestrial dispute over the Senkaku Islands, which China calls Diaoyu.

Japan’s Kyodo News Agency on Saturday quoted multiple sources as saying the three countries will hold ministerial talks and officially declare the opening of negotiations on the sidelines of the East Asia Summit. The summit will have 18 heads of state participating, including the U.S., and open Tuesday in Phnom Penh, Cambodia.

On the report, Choi Gyeong-lim, head of the free trade negotiations team at the Trade Ministry in Seoul, told The Dong-A Ilbo over the phone Sunday, “Working-level officials from the three countries are closely consulting with each other on how to declare the opening of talks,” adding, “A conclusion will be reached (on the method to declare the opening of negotiations) sooner rather than later.” If the talks are officially opened, the three sides will likely begin their first round of talks this year.

The three sides had originally at the Beijing Summit in May on holding talks over the East Asia Summit period and jointly opening free trade negotiations. Working-level officials then held three rounds of consultations through late September and concluded domestic procedures.

Korea also wrapped up all procedures including public hearings, approval from a meeting of external economic ministers, and reporting to the National Assembly, and just announcing the opening of the trade talks remains.

But negotiations are unlikely start this year as Beijing has repeatedly threatened to suspend the talks amid deteriorating ties with Tokyo over their territorial dispute. Japan has also expressed more interest in the Trans-Pacific Partnership led by the U.S. The convening of the trilateral summit, which was planned on the sidelines of the East Asia Summit, also grew uncertain due to worsening Sino-Japanese relations and fueled doubts over the opening of the trade talks this year.

But a potential breakthrough is the suggestion that ministerial meetings be held instead of summit talks. The three parties found that the opening of the trade talks need not necessarily be announced in a summit. Free trade official Choi also said, “If summit talks cannot take place, the opening of negotiations could be declared through other methods as well.

In this regard, Kyodo said the three countries have agreed to pursue a free trade agreement to strengthen economic solidarity rather than being bound by obstacles such as territorial disputes.

ryu@donga.com