Japan seeks 'orderly trade' on China produce


The talks are taking place in Shanghai, China's business capital, in a nod to their private-sector roots

By Alex Frew McMillan

HONG KONG, China (CNN) -- Japan is seeking "orderly trade" in farm goods with China, according to a government spokesman.

Akira Chiba, Japan's counsellor for economic affairs in the Beijing embassy, told CNN on Thursday that his country hopes to establish a dialog with China on produce.

Chiba said it will be the first in a series of such meetings.

Officials are meeting from both the private sector and the public sector to resolve the nine-month spat. The get-together is slated for two days.

Shoji Yamano, deputy director general of agriculture, is leading the representation from the Japanese government.

Prior to the meeting, Chinese state-owned media noted the meetings are being led by the private sector and are technically non-governmental.

Farm goods are the sole topic of conversation, with industry representation from those affected in the sale of leeks, shiitake mushrooms and tatami-mat rushes in attendance, Chiba said.

Shanghai the center of talks

In a nod to the private-sector nature of the talks, they are happening in Shanghai, China's business hub. Previous government talks have taken place in either capital.

The two countries narrowly avoided a trade war stemming from farm goods late last year. But they agreed they had not solved all their issues.


Shanghai's famous Bund waterfront faces Pudong, the city's business district

Adding to the tension, Makiko Tanaka, Japan's ex-foreign minister, admitted Japan is concerned about China's growing might in the continent.

In last-ditch ministerial talks in December, Japan narrowly avoided slapping full four-year sanctions on leeks, shiitake mushrooms and tatami-mat rushes. Most of those goods come from China.

In return, China dropped 100 percent tariffs on air conditioners, mobile phones and cars from Japan. China state media reports that those goods amount to $1 billion.

The battle on farm produce, a key issue in the emerging world, would likely have gone to the World Trade Organization. But the two countries agreed to settle the issue themselves.

China joined the WTO in December, with Taiwan following shortly afterward. It risks serious job disruption as its often-smalltime farmers start competing with sometimes superior overseas produce.

On the flipside, countries like China and India have demanded that their farm produce get broader access in the developed world, in return for opening their markets to multinationals.