The Wall Street Journal says hopes are fading that South Korea, China and Japan will launch negotiations for a trilateral free-trade agreement within this year.

The daily’s online edition said Monday that rising tensions over territorial disputes have left little room for leaders of the three countries to discuss economic issues.

In particular, the U.S. daily quoted Japanese officials and experts as saying that “they see few signs that things are turning around” between Japan and China, whose ties have been “severely curtailed after a bitter feud over a chain of small islands reignited in August.”

The paper also quoted a lawmaker of Japan’s ruling camp who said regarding the current situation, economic cooperation cannot come before political issues.