Finance Minister Masajuro Shiokawa and Somkid Chatusripitak, deputy prime minister of Thailand, remained divided Friday over whether to launch talks on a bilateral free-trade agreement, according to a ministry official.
Meeting at the Finance Ministry in Tokyo, Somkid pushed for the start of formal negotiations for an FTA, stating that an accord of this kind would generate maximum benefits for both countries, the official said.
But Shiokawa explained Japan is undecided on the matter, adding that he hopes thorough discussions will be held when Prime Minister Thaksin Shinawatra visits Japan next month, the official said.
Domestic farming groups, as well as the Agriculture, Forestry and Fisheries Ministry, are concerned that an FTA with Thailand would have a severe impact on the protected farming sector.
Thailand meanwhile hopes to export more agricultural products to Japan.
During the meeting, Shiokawa and Somkid also agreed that Asia's bond markets should be nurtured to stabilize regional currency swings and to bolster economic growth, the official said.
Shiokawa stated that Japan believes the region should steer itself away from its reliance on the dollar and promote the use of Asian currency-denominated bonds.
As part of a drive to this end, Somkid called on Japan to participate in the Asian Bond Fund, which draws on a pool of foreign reserves from member economies to invest in dollar sovereign bonds issued by many of its members.
Shiokawa said that Japan is considering the plan.