WASHINGTON, Nov. 4, 2009 (Kyodo News International) -- Japanese and U.S. business leaders said Tuesday their governments should strengthen bilateral economic relations in Asia through such efforts as pursuing economic integration between the two countries and in the region.
''Given Asia's current growth and integration trends and the vital security interests that are at stake in the region, there is arguably no area of the world more important to long-term global prosperity and stability,'' the leaders said in a joint statement released after ending a two-day annual meeting in Washington.
''In this context, and as the United States and Japan look for ways to promote economic recovery and increase their competitiveness amid the economic challenges of the 21st century, closer U.S.-Japan economic integration and cooperation in Asia makes sense,'' the leaders said.
About 40 leaders from the Japan-U.S. and U.S.-Japan business councils took part in the 46th talks, co-chaired by Nomura Holdings Inc. (NYSE:NMR) Chairman Junichi Ujiie and Jean-Luc Butel, executive vice president of Medtronic Inc. (NYSE:MDT)
As a specific measure to solidify bilateral economic ties, they said both governments should commit to an economic dialogue focused on achieving concrete measures to boost trade and investment, energy and environmental cooperation, and harmonize regulations and standards, both bilaterally and in Asia.
The leaders said the successive hosting of the Asia-Pacific Economic Cooperation ministerial and summit meetings by Japan in 2010 and the U.S. in 2011 presents a ''tremendous opportunity'' for Japan and the U.S. to refocus their common values and goals on the Asia-Pacific region.
They said they ''endorse the U.S. and Japanese governments' support for APEC's efforts to accelerate Asia-Pacific economic integration and remain supportive of multilateral negotiations at the WTO (World Trade Organization).''
Noting that greater Japan-U.S. economic integration and cooperation would provide an impetus for further progress on both of these fronts, they called for a long-term objective for a ''comprehensive, high-level Economic Partnership Agreement.''
The stance is a substantial setback from their calls in recent years for launching negotiations to conclude a free-trade arrangement between the world's two largest economies at an early date.
''The councils acknowledge that the path forward for a high-standard EPA is difficult in the current political and economic environments in both countries in light of some sensitive issues that would have to be tackled to achieve such an agreement,'' the leaders said.
Nevertheless, they said they ''believe the potential benefits of a comprehensive EPA to both economies far outweigh the costs and urge the U.S. and Japanese governments to commit to this long-term goal while starting now to take incremental steps toward it.''
On other issues, the leaders expressed concern about the new Japanese government backtracking from the previous governments' drive to privatize the nation's postal services.
''On Oct. 1, 2007, the new Japanese postal financial entities began operations which, given the scale of these businesses, have a major impact on the financial and capital markets,'' they said.
''It is important to establish a level playing field between cooperative financial institutions and private-sector financial services industries'' by completing the privatization process, they said.
The new Japanese government of Prime Minister Yukio Hatoyama, led by the Democratic Party of Japan, believes that the quality of the state-supported Japan Post operations has deteriorated under the privatization process, launched in line with former Prime Minister Junichiro Koizumi's reform drive.
As for global warming, the leaders sought Japan-U.S. cooperation in helping forge a new global treaty this year aimed at curbing greenhouse gas emissions, as well as in the fields of alternative energy sources and technologies.
