EDITORIAL | No Free Trade Talks Unless China Lifts Ban on Japan's Seafood

Leaders at the trilateral summit in Seoul issued a joint declaration agreeing to resume free trade negotiations that had been on hold. Prime Minister Fumio Kishida, Chinese Premier Li Qiang, and South Korean President Yoon Suk-yeol issued the statement, saying their countries would "continue discussions to accelerate negotiations" toward concluding a free trade agreement (FTA). 

China, whose economy has been deteriorating, apparently pushed for the agreement. Despite bilateral political tensions, the fact is that Japan and China remain linked by economic ties. If Japan and South Korea can cajole China into engaging in free trade based on fair rules, such an agreement would also benefit Japan. 

However, we are highly doubtful that the timing is right for resuming negotiations for a free trade agreement. 

China's Unfair Trade Practices

Beijing continues to unfairly suspend imports of Japanese seafood. Its unsupported excuse is the release of treated water from the Fukushima Daiichi Nuclear Power Plant. Furthermore, Chinese President Xi Jinping refuses even to acknowledge the existence of Chinese overproduction. However, that problem is causing headaches for Japan, the United States, and Europe. 

Can Japan enter into meaningful negotiations with China so unwilling to change its selfish attitude? Negotiations for FTAs take for granted conflicting national interests. But they are premised on achieving a common understanding among the parties in the pursuit of free trade. As long as China chooses to subvert this philosophy, Japan should not be too eager to rush into such negotiations. 

Arguments Echo Empty Results of RCEP

The fact is that Japan, China, and South Korea are already members of the Regional Comprehensive Economic Partnership (RCEP). Now, they say, they aim to achieve a higher degree of collaboration through a trilateral FTA. They are also expected to discuss issues such as the abolition of tariffs on motor vehicles, Chinese government subsidies, and preferential treatment for state-owned enterprises. 

Some observers feel that the equal footing of the three parties in the negotiations could encourage China to agree to changes. But the same argument was made about the RCEP. The current reality, however, is that although China said it sought to promote free trade by joining the RCEP and applying to join the Trans-Pacific Partnership (TPP), it has shown no inkling to abandon its hardline unilateralism, including its readiness to engage in economic coercion. 

First, End the Import Bans Against Japan

Japan should not resume FTA negotiations with China and South Korea unless basic preconditions are met. Beijing and Seoul must first immediately lift their import bans on Japanese seafood products. They say the release of ALPs treated water justifies their bans. However, that excuse has no scientific basis whatsoever. 

Furthermore, before negotiations can begin, Beijing must also promise to meaningfully address the overproduction of cheap Chinese products that are distorting world markets.

China's current eagerness to revive FTA negotiations no doubt stems from the desire to invigorate its moribund domestic economy. In addition, Japan, the US, Europe, and other regions are moving to strengthen their ties to reduce dependence on China. In response, Beijing may be seeking to cause division in their ranks to avoid becoming isolated. Japan must take into account China's real intentions and act more prudently. 

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(Read the editorial in Japanese.)

Author: Editorial Board, The Sankei Shimbun