Sino-Japanese Trade Talks Begin on Farm Produce Dispute

China, JapanRe-open Talks on Trade Disputes

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Senior Chinese officials are standing their ground on the eve of scheduled trade talks with Japan regarding a dispute on farm produce.

It was the second round of formal trade negotiations after a fruitless first round in July which was followed by informal contacts.

The Chinese delegation comprised 18 officials from the ministries of Foreign Trade and Economic Cooperation, Foreign Affairs, Finance and Agriculture. The 18-member Japanese delegation represented the ministries of International Trade and Industry, Foreign Affairs, Finance and Agricultural, Forestry and Fisheries and the Japanese Embassy in China.

"China will not call off its retaliatory measures until Japan declares the end of its investigation and decides not to take protective measures against Chinese farm produce exports," a senior Chinese official said Thursday in Beijing.

The official said Japan's recent decision not to immediately launch protective measures after the temporary import curb expires on November 8 was not an ultimate end to the Sino-Japanese trade row.

Japan imposed a temporary import curb on onions, mushrooms and tatami rushes, mainly from China, from April 23 to November 8. China retaliated with 100 per cent customs duties on imports of automobiles and parts, air conditioners and cellphones from Japan on June 23.

The Japanese Ministry of Trade and Industry declared last week that it would refrain from immediately initiating import curbs after the temporary measure expires on November 8. But Japan said it would continue to investigate the case.

Japan started the investigation on December 20 last year. The investigative period normally lasts a year and can be extended under exemptional conditions, according to Japanese law.

"Protective measures are still possible before the investigation concludes, according to Japanese law," the Chinese official said.

The official said China would not like to call off its retaliative measures only to find that Japan later makes an unfavourable decision against China.