Trade minister Toshihiro Nikai's announcement earlier this month that Japan plans to start talks with 15 other nations in 2008 to create an Asia-Oceania free-trade zone took many by surprise -- not only experts but also those within government -- sparking speculation about the ministry's true intentions.
On April 4, the Ministry of Economy, Trade and Industry proposed a new economic framework to strengthen trade relations beyond current bilateral free-trade agreements, saying it involves not only tariff reductions but also investment, services and rules on intellectual property -- a comprehensive economic partnership agreement.
"The EU took many years to establish such an economic union. This is a proposal from Japan to East Asia to take the first step toward an economic community," said Takeshi Fujimoto, deputy director of METI's Economic Partnership Division.