[Editorial] Trilateral FTA talks

The trade ministers of South Korea, China and Japan have declared the launch of official negotiations on a three-way free trade agreement on the sidelines of a regional summit in Cambodia.

It has been six months since the top leaders of the three neighboring countries agreed to start talks on the FTA within this year during a trilateral summit in Beijing in May.

Until only recently, it was reported that the start of the negotiations would be delayed to next year due to the heightened tension between China and Japan. Reflecting the uncomfortable Tokyo-Beijing relationship, the three countries had their trade ministers, rather than their national leaders, declare the start of the talks.

Nevertheless, the fact that the talks have finally started after a long delay should be seen as a big step forward. It indicates the determination of the three neighbors not to allow geopolitical rows to hold economic cooperation hostage.

Seoul-Tokyo and Beijing-Tokyo relations are at a nadir due to the recent flare-up of territorial disputes. Tokyo ignited a conflict with Seoul by repeating its sovereignty claim to South Korea’s easternmost islets of Dokdo. It also provoked China by nationalizing the Senkaku/Diaoyu Islands, which are also claimed by Beijing.

Despite the frayed ties, the three economic powerhouses have started the ball rolling on their plans to create one of the world’s largest markets. Currently they account for 20 percent of the world’s gross domestic product, 17.5 percent of all global trade, and 22 percent of the global population.

The three-way pact, if realized, would create a free trade area with a combined population of 1.5 billion people and aggregate GDP of $12.3 trillion.

The proposed FTA would deepen the trade and investment ties among the three economic powerhouses, helping them offset the slowing growth in global demand for their products due to the prolonged financial turmoil in the eurozone.

Yet their negotiations on the trade pact are expected to face rough sailing as many of their key industries overlap. The difficulty Korea and Japan have in opening up their agricultural markets is another reason.

A more formidable roadblock would be the historical and territorial disputes among the three countries, which flare up frequently to mar their relations. The three neighbors should pool their wisdom to prevent the problems of the past from stopping their joint march toward a prosperous common future.

We hope the start of the FTA talks gives the three countries an opportunity to reset their trilateral relations.