The government should accept a proposal made earlier this month by the Okinawa Prefectural Government to turn the prefecture into a free trade zone by around 2005, a public think tank recommended Monday.
A panel of the National Institute for Research Advancement concluded in an interim report that the government should work out a general framework to realize the proposal. Yutaka Kosai, head of the NIRA panel who is also chairman of the Japan Center for Economic Research, submitted the preliminary report to Chief Cabinet Secretary Kanezo Muraoka.
"The government will utilize the recommendations included in the report when compiling measures to boost the economy of Okinawa," Muraoka told a regular conference. Muraoka added that the government is preparing to announce an economic package for the development of northern Okinawa at the end of November.
The NIRA report says drastic measures are necessary to achieve the free trade zone plan, including deregulation and tax incentives related to tariffs and corporate taxes. The report adds that steps for the future are necessary to nurture human resources and to boost opportunities to launch new businesses to develop economy in Okinawa in a long run.