IMF chief 'welcomes' Japan joining trade talks

TOKYO: IMF chief Christine Lagarde on Saturday said she welcomed Japan's decision to enter talks towards an Asia-Pacific free trade deal, during a visit to Tokyo where she met with Japanese officials.

"I welcome Prime Minister (Yoshihiko) Noda's announcement that Japan will participate in negotiations on the Trans-Pacific Strategic Economic Partnership Agreement (TPP), which can make a vital contribution to this country's future competitiveness and growth," said Lagarde, the IMF's managing director.

Noda on Friday said Japan would enter the talks, a move that threatens to deepen rifts in the ruling party amid opposition from a weak agricultural sector that fears competition from cheap imports.

At the same time, Japan's exporters are eager to expand their overseas markets.

As he left Saturday to join other Asia Pacific Economic Cooperation forum leaders for a summit in Hawaii, Noda said: "Promoting free trade and investment is very significant to promote economic integration in the Asia-Pacific region and to bring the region's vigour to Japan."

Noda plans to hold talks with US President Barack Obama and with Chinese President Hu Jintao on the sidelines of the summit.

Copyright AFP (Agence France-Presse), 2011