Japan is planning to resume negotiations with the six Gulf Cooperation Council countries next year, Japanese Yomiuri Shimbun reported.
Prime Minister Fumio Kishida is expected to reach an agreement Sunday with GCC Secretary General Jasem Al-Budaiwi as part of his visit to Saudi Arabia, the report cited sources as saying.
By resuming negotiations and deepening trade relations with the Gulf states, Japan hopes to strengthen its energy security, after talks were suspended in 2009.
Most recently, in May, Japan imported around 76 million barrels of crude oil, of which 97 percent (73.68 million barrels) came from GCC countries.
In 2020, Japan imported goods, primarily crude oil, worth about ¥5.4 trillion from GCC countries, while exporting cars and machinery parts worth about ¥2.1 trillion to those countries.
Japan does not impose tariffs on goods imported from the GCC, but GCC countries impose a 5% tariff on most products imported from Japan.
Consequently, Japan Business Federation and other organizations have urged the government to resume FTA negotiations with the GCC in hopes an agreement will result in the elimination or reduction of tariffs.
Due to the high income level in the Gulf Cooperation Council countries, some within the Japanese government expect the FTA to lead to an increase in exports of manufactured goods, in addition to agricultural, forestry and fishery products.f
Following Russia’s invasion of Ukraine, there have been noticeable moves within the international community to strengthen trade ties with Middle Eastern countries with an eye on stabilizing energy supplies.
China and South Korea have already resumed FTA negotiations with the GCC, putting Japan under pressure to accelerate negotiations.
