China, Japan, and the South Korea opened the first round of formal negotiations on securing a free trade union, which may become the third largest union after North America and the European Union, Associated Press reports.
During the talks, which end March 28, the countries are set to discuss some administrative issues. In addition, the authorities will outline the agenda for future negotiations.
The creation of a trade union of Asian largest economies, which account for about 20% of global GDP, has been on the table for decades. As Agence France-Presse reports, Beijing is pushing hard for a pact - China’s government aims to reduce the US influence on the region with the help of this free trade bloc.
Washington is leading negotiations to widen Trans-Pacific Partnership, TPP. In the middle of March Japan’s prime minister Shinzo Abe confirmed Tokyo’s decision to participate in TPP negotiations. Current members of the Partnership are Chili, New Zealand, Singapore, and Brunei. The USA, Australia, Malasya, Peru, Vietnam, Canada, and Mexico are thinking of joining TPP.
Some Asian countries are opposed to entering the free trade union. Thus, South Korean farmers protest against the bloc amid the concerns of losing their businesses due to high competition. Japan expresses the same point of view. Meanwhile, automobile makers support the union as they count on sales growth due to tax cancellation.
