A scene from the East Asia Summit (Signing ceremony of the declaration of the leaders at EAS) (Photo courtesy of the Public Information Office, Cabinet Secretariat)

As the economy globalizes at unprecedented speed, Japan's economy and industry face increasing competition not just from the U.S. and the EU as in the past, but also from China, India, and other Asian nations. At the same time, regional economic cooperation is advancing around the world, centered on the EU and North America. In Asia as well, a movement towards East Asian economic integration is underway.

Under these circumstances, Japan, as one of the world's economic superpowers, must work to strengthen the competitiveness of its economy while contributing to development of the global economy. The Trade Policy Bureau seeks to ensure a good balance between the national interest and global interests, strategically advancing prompt external economic policies in harmony with domestic economic policy.

White Paper on International Economy and Trade 2006

With the explosive growth of information technology since the late 1990s, it has become possible for resources such as people, goods, money, culture, and information to move freely across national borders, causing the global market economy to expand rapidly. In particular, the East Asian region, including ASEAN, China, and India, has been the world's fastest growing area since the 1990s. Stable growth in Asia is extremely important both globally and to Japan, which has deeply interdependent economic relationships with the countries of Asia.

As globalization advances, the number of issues requiring international cooperation is increasing. Energy and environmental issues are now inseparable from global economic development, and various countries are striving to build cooperative relationships. Furthermore, the creation of international frameworks and the resolution of disputes over intellectual property are essential to improve the business environment to enable Japanese industry to ceaselessly create added value. Along with other relevant government bureaus, ministries, and agencies, the Trade Policy Bureau strategically advances external economic policy, not only in trade, but in the wide range of fields mentioned above.

The Trade Policy Bureau develops a multifaceted external trade policy mainly from the perspectives below.

Minister of Economy, Trade and Industry Akira Amari meets with US Trade representative Susan C. Schwab at the APEC Ministerial Meeting

Japan is actively participating in multinational negotiations promoted by the WTO, through which as many as 150 large and small member nations are seeking to work out common trade rules. As a major trading nation that benefits from free trade, Japan finds the promotion of WTO negotiations to be indispensable in the strengthening of rules that increase predictability and prevent disputes.

About five years have passed since the opening of the Doha Round negotiations. As one of the world's major nations, Japan has made an integrated effort to lead the negotiations. In July 2006, the Doha Round negotiations were suspended, but the public and private sectors in Japan jointly continued to work toward resuming them. Even while the negotiations were suspended, Japan supported the "One Village, One Product" movement to promote the trade-based development of developing nations. With the negotiations now open again, Japan is making an all-out effort towards an early agreement.

Japan is forging ahead with efforts to form Economic Partnership Agreements (EPAs) centering on Free Trade Agreements (FTAs). FTAs reduce or eliminate customs duties on goods and barriers to trade in services. EPAs go further, also helping to free up and smooth out the movement of people, goods, and money, while strengthening a broad range of economic ties. By reducing economic barriers between signatory countries, EPAs provide various mutual benefits to their members by expanding trade and investment, while promoting domestic structural reform and strengthening relationships among countries. Japan is currently negotiating bilateral and regional EPAs mainly with countries in East Asia and with resource-producing countries, and will continue to push forward with these negotiations in the future.

Minister of Economy, Trade and Industry Akira Amari attends a meeting of East Asian economic ministers

In April 2006, the Ministry of Economy, Trade and Industry set forth its Global Economic Strategy to indicate the basic direction of medium- and long-term external economic policy amidst the advance of economic globalization. Actively pursuing economic integration in East Asia in accordance with the Strategy, the Ministry is working on the key initiatives of concluding an "East Asia EPA" and establishing the Economic Research Institute for ASEAN and East Asia (ERIA). The East Asia EPA aims to bring 16 countries, i.e., the ASEAN nations, Japan, China, South Korea, India, Australia, and New Zealand, into a free and mature economic bloc. The Ministry is advancing preparations for the earliest possible commencement of research by private-sector experts. In addition, ERIA will be an international research organization that provides intellectual support such as policy advice to initiatives by East Asian Summits and ASEAN on shared issues and the correction of disparities within the region. Its future development into an "East Asian OECD" is also borne in mind. ERIA is to be established during the first half of 2007. The countries involved are greatly interested in ERIA because of expectations that it can play a role in East Asian economic integration similar to the key role that the Organization for Economic Cooperation and Development (OECD) played in the integration of Europe. The heads of state attending the East Asian Summit in January 2007 welcomed the establishment of the organization.

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