Straddling an international border, the Second Thai-Lao Friendship Bridge over the Mekong was completed in 2006 using yen loans. (Photo courtesy of Sumitomo Mitsui Construction Co., Ltd.) A stamp was issued to commemorate its opening.

Although on the one hand Japan has benefited through expanded trade and investment from the advance of economic globalization, on the other hand it also faces global issues such as economic disparities, resource and energy constraints, and security concerns. In order to overcome these issues and grow along with the rest of Asia, Japan must actively contribute to Asian growth, creating a virtuous circle mechanism in which that dynamism in turn aids Japan's own growth.

Under these circumstances, the Trade and Economic Cooperation Bureau aims through trade investment and economic cooperation to disseminate Japan's outstanding value, build bridges to the world, and gain the trust of other nations. Furthermore, trade management based on international commitments, such as the non-proliferation of weapons of mass destruction and the protection of wild flora and fauna is a duty shouldered by those countries that wish to be responsible members of the international community, and the Bureau engages in rigorous inspections and the examination of exported and imported goods, pursuant to the Foreign Exchange and Foreign Trade Control Act.

Not only does support for developing countries contribute to the international community, it helps secure Japan's safety and prosperity. The Ministry of Economy, Trade and Industry carries out initiatives to strategically implement economic cooperation in order to stimulate production, trade, and investment through support for an improved trade and investment environment with fellow Asian nations that are indispensable partners in Japan's economic development, to stabilize resource and energy supply and demand, and to solve environmental problems that are serious global issues. In addition, the Ministry

Support for training human resources for industrial work (maintenance technology for press dies) (Photo courtesy of Toyota Motor Corp.)

cooperates with other agencies through the Overseas Economic Cooperation Council chaired by the Prime Minister.

In specific terms, the Ministry uses yen loans to upgrade ports, railways, power plants, and other industrial and logistical infrastructure, sends diagnosticians for small and medium business to disseminate Japan's advanced systems to the rest of Asia, and fosters industrial human resources development utilizing the manufacturing plants of Japanese companies in Asia. The Ministry also works strategically and comprehensively to strengthen relationships with resource-producing countries.

Foreign trade or investment is accompanied by wide-ranging risks such as war and terrorism or financial uncertainties. Trade insurance is a system precisely designed to cover such risks that are not assumed under private insurance, and enables Japanese firms to safely conduct foreign trade and overseas investment. METI plans, draws up policies, and operates trade insurance in cooperation with Nippon Export and Investment Insurance (NEXI), which underwrites trade insurance.

Because the revitalization of regional economies will contribute to the Japanese economy, we consider it important to assist the export sales efforts of small and medium enterprises around the country that are equipped with high-level technologies or unique ideas.

To meet the wide-ranging requirements regarding export issues, we offer consultation services on foreign trade through the Japan External Trade Organization (JETRO), an incorporated administrative agency. Such services assist small and medium companies in overseas market research and help them participate in overseas exhibitions and find good matches with foreign companies.

Furthermore, demand has been rising in recent years in China, Taiwan, and some other Asian economies for Japan's safe, high-quality agricultural and marine products. In collaboration with the Ministry of Agriculture, Forestry and Fisheries, we are making efforts to open up and expand overseas markets for such products.

Through such measures and policies, we seek to enhance the overseas reputation of Japanese products and commodities; in other words, we are seeking to establish a "Japan Brand."

In recent years, many foreign companies have come to Japan. A Hokkaido resort that received investment from Australia has been able to attract many tourists, especially skiers, from overseas, contributing to the stimulation of the local economy. This kind of direct investment from overseas brings regional economic regeneration, increased employment, and new technologies and services to Japan. The government works actively to promote investment in Japan. Last year, it set the new goal of doubling the amount of direct investment in Japan by 2010. Working towards this goal, the Bureau works to create an environment conducive for foreign companies to work in, to attract investors through overseas newspapers and magazines, and to support regions that actively seek to attract foreign companies.

A Hokkaido resort contributing to regional regeneration through investment from Australia (Photo courtesy of the Hokkaido Heritage Concept Promotion Council)

An advertisement calling for direct investment from overseas (Appearing in major newspapers)

From the viewpoint of maintaining and strengthening our national security, we need to be prepared for new threats posed by the increasing proliferation of weapons of mass destruction (WMD) and ballistic missiles (BM) and the intensification of activities carried out by international terrorist organizations. As one of the few countries in the world that exports high technology, Japan will not permit the products and technologies it exports to be used in the development of weapons of mass destruction (WMD). Japan is the only nation in Asia that has undertaken to control the export destinations of WMDs. It is working in collaboration with member countries and regions in multilateral agreements on export management to build a hard-and-fast international export control system.

Furthermore, in regard to North Korea, which has become a threat to the peace and safety of Japan and of the international community, the Bureau will continue its strict control of exports of WMD-related cargos bound for North Korea. Seeking a good-faith response form that nation, it also works with relevant government agencies to prohibit all cargo imports from North Korea and luxury exports to North Korea.

In order for Japan to perform a responsible role in the international community and achieve healthy development of our external trade, it is necessary to strictly control exports and imports in accordance with international conventions such as the Washington Convention (Convention on the International Trade in Endangered Species of Wild Fauna and Flora) and the Basel Convention (convention on control of trans-boundary movements of hazardous wastes and their disposal).

Further, in the event that any unfair export of foreign products causes injury to our industry, we will apply trade remedies fairly and objectively pursuant to the relevant WTO rules.