EU, Japan agree to work towards free trade deal

BRUSSELSMay 29 (AFP): Leaders of the European Union and Japan today agreed to start talks towards a multi-billion-euro free trade deal linking the world's third biggest economy to the globe's largest market. Long demanded by Tokyo, the decision to launch preliminary talks on a trade deal, as well as on a binding political accord, was announced at the close of a summit between EU leaders and Japanese Prime Minister Naoto Kan. "We still have a long way to go, but the objective is now clear," said EU president Herman Van Rompuy after the talks in a history-packed castle nestling in parkland on the outskirts of Brussels. "When two of the world's largest trading partners jointly confirm their intention to work towards a free trade agreement, that is a big step forward," he added. A joint statement said it was "agreed to start the process for negotiations for a deep and comprehensive free trade agreement (FTA)economic partnership agreement (EPA), addressing all issues of shared interest to both sides". Among issues listed in the document are tariffs, non-tariff-measures, services, investment, intellectual property rights, competition and public procurement. Hailing a move that helps defuse decades of trade friction, Kan said: "I'm convinced this will lead to a far-reaching economic partnership agreement." But the EU says a mountain of work remains to identify sticking points and compile a to-do list of obstacles to overcome before member states will approve official negotiations towards an FTA between the two economic giants.