On 20th of August, Japanese government announced the draft agreement that is going to be brought to the negotiation on Economic Partnership Agreement (EPA) with ASEAN, in which proposes to immediately reduce and remove importing taxes on 90% of kinds of agricultural, industrial products and minerals from ASEAN to Japan.

After that, in a roadmap of 10 years, Japan will increase the number of kinds of goods with lowered tariffs in order to carry on free trade rapidly to most of all kinds of imports between the two parties.

As planned, on 25th of August, ministers of Economy of Japan and ASEAN are meeting in Philippines. If the above mentioned agreement is reached, they will confirm for the last time at the Japan- ASEAN summit meeting in the forthcoming November in Singapore and then wait for the countries’ Assemblies to ratify so that this EPA is put into effect officially since 2008.

Japan tends to reduce and remove tariffs for almost every kind of products imported from ASEAN right after the EPA is put into effect. Japan has signed separate agreements with 6 ASEAN countries including Thailand, Philippines, Malaysia, Brunei, Myanmar, and Indonesia. This country is at the same time conducting the negotiations with the rest countries. In this case, when the two Asian competitors, China and Korea, have reached the similar agreements with ASEAN, Japanese Government considers achieving the EPA with all ten countries of ASEAN the nuts and bolts.

At the moment, Japan is importing fruit, mechanical engineering machinery such as external component, and electronic equipments estimated at 8,000 billion Japan Yen per year. A portfolio of goods whose tariffs are removed is now being readjusted by the Japan Government. Products of mineral group and textile group will have tariffs removed. The government is now considering removing tariffs on the agricultural products which are now taxed 100% such as rice, wheat flour. Japan also expresses its expectation that ASEAN consider lowering and removing taxes on its cars and steel products imported in those countries.

In the meeting in the last May, Ministers of economic of Japan and ASEAN agreed to sign EPA pledging to lower tariffs on 90% of kinds of exporting products of each other in the next 10 years. The common agreement between Japan and ASEAN is the foundation for a common Eastern Asian Communication. That Japan reduces tariffs rapidly on ASEAN’s products will help this country to be closer to ASEAN in term of trade and then enhance the economic effectiveness of parties participating EPA.