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Japan-Brunei FTA takes effect Thursday+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, July 31_(Kyodo) _ A free trade agreement between Japan and Brunei took effect Thursday to eliminate tariffs on 99.9 percent of bilateral trade in 10 years. "We shared the view that the agreement will contribute to enhancing the cross-border flow of goods, services and investment between the two countries, ensuring the stable supply of energy and improving the business environments of both Japan and Brunei Darussalam," the two nations said in a joint statement. Japanese Foreign Minister Masahiko Komura and Finance Minister Fukushiro Nukaga, and Brunei Minister of Foreign Affairs and Trade Mohamed Bolkiah issued the statement as they met in Tokyo for the first meeting of the joint committee under the Japan-Brunei Economic Partnership Agreement. Stressing the importance of cooperation in fields of mutual interest such as energy and environment, the ministers also expressed hope that the FTA would further accelerate private sector activities and enhance economic ties. The FTA is expected to ensure a stable supply of natural gas and other energy to Japan as the two countries will discuss energy-related issues under the agreement. Among other stipulations of the accord, Japan will immediately eliminate tariffs on almost all industrial imports from the resource-rich Southeast Asian country. Japanese tariffs on agricultural and fishery products from Brunei, such as asparagus, mangos, durian and shrimp, will be eliminated immediately as well. Brunei will get rid of the current 20 percent tariff on cars and almost all auto parts from Japan within three years. Imports and exports between Japan and Brunei totaled about 264 billion yen in 2005, according to Finance Ministry statistics. About 70 percent of Japan's exports to Brunei are cars and auto parts. The FTA also calls on the two countries to promote cooperation in broader fields such as trade and investment, information and communications technology, agriculture, and the environment. Copyright ? 2008 Kyodo News International, Inc. |