History of METI

METI has been transforming itself to respond to the needs of the times.
METI has a history of responding to the changing needs of society. Therefore, its history is the history of Japan's progress.

Establishment of the Ministry of International Trade and Industry

In 1949, the Ministry of Commerce and Industry was reorganized and the Ministry of International Trade and Industry was established.
Its internal subdivisions consisted of eight bureaus: Minister’s Secretariat, Trade Bureau, Trade Promotion Bureau, Enterprise Trade Bureau, Textile Trade Bureau, General Merchandise Trade Bureau, Machinery Trade Bureau, Chemical Trade Bureau, and Iron and Steel Trade Bureau.
In addition, four agencies, Resources Agency, Small and Medium Enterprise Agency, Industrial Technology Agency, and Patent Office; eight regional trade and industry bureaus; and four regional coal bureaus were established as external subdivisions.

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1949 : Road to Industrial Rationalization

After the defeat in the war, the technological level of Japan's industry lagged far behind that of the U.S. and Europe after a decade-long hiatus in exposure to overseas technologies. Japan’s industry was unable to stand on its own feet in the international market. Successful recovery depended on "industrial rationalization", namely "technology innovation". The Industrial Rationalization Council was established in 1949 to undertake rationalization of the iron and steel and coal-mining sectors. In 1952, METI and the Ministry of Finance jointly enacted the Enterprise Rationalization Promotion Law, which would play a major role in subsequent modernization.

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1960 : Steps toward Free Trade

Japan began to see a favorable balance of payments after its accession to the General Agreement on Tariffs and Trade (GATT) in 1955, which resulted in mounting international pressure on Japan to liberalize its markets. In 1960, the Japanese government adopted the "Outline of the Trade and Exchange Liberalization Plan", which was aimed at increasing the liberalization rate from about 40% to 90% in three years. Japan’s liberalization rate increased to 89% in 1963. Japan then joined the OECD and Japan's economy began operating under the open regime. This led to the liberalization of the import of vehicles in 1965.

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1967 : Overcoming Negative Aspects of Industrial Growth

In the beginning of the 1960s, Japan’s economy began to grow due to industrial development through technological innovation and productivity improvements. However, economic growth caused social problems such as pollution and environmental destruction. Factories released hazardous substances into the water and air, thereby posing a threat to people’s health and lives. The Japanese government enacted and enforced the Basic Law for Environmental Pollution Control in 1967. The Law concerning the Settlement of Environmental Pollution Disputes and the Water Pollution Control Law were enacted in 1970. In the same year, the Ministry of International Trade and Industry established the Industrial Location and Environmental Protection Bureau to launch full-scale efforts to overcome environmental pollution problems.

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1971 : Direction of Japan's New Economy in the 1970s

The strong yen resulting from the Dollar (Nixon) Shock (1973) and the strong yen caused by the 1974 oil shock were major blows to the iron and steel and chemical industries that had undergone expansion in the 1960s. Japan was forced to make a major turn around in its industrial structure. A few years before that, the Industrial Structure Council announced the "Creation of 1970s Vision". The council correctly predicted the beginning of a new era, when it said that "we are in a new situation in which Japan’s rapidly grown economy and the world economy are inseparably related. This is an unprecedented situation" and proposed the "concept of a knowledge based economy", a new industrial structure policy based on the understanding that "constant pursuit of expansion is a thing of the past".

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1980 : Moving on from the Catching up and Modernization Era

The Industrial Structure Council submitted a report "Creation of 1980s Vision" with a view to shifting to a new international trade policy based on the understanding that Japan had become an economic power accounting for 10% of the global economy and thus had to play a role commensurate with its power. Japan's manufacturing industries suffered rapid appreciation of the yen against the dollar following the Plaza Accord of 1985. However, a sharp increase in direct investments in East Asian countries led to the upgrading of industrial production in the region where labor costs were lower, thereby contributing to the high growth of East Asian economies (the "Miracle of East Asia").

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1990 : Local Issues Going Global

As it threatens human security and natural ecosystems across borders, the climate change issue became increasingly prominent through the 1980s both among both advanced and developing countries. Internationally, the "Framework Convention on Climate Change" and the "Kyoto Protocol" were adopted in 1992 and 1997, respectively. Under the Protocol, advanced countries are required to reduce a certain amount of emissions from 2008 to 2012 with 1990 set as the base year. Japan is expected to make positive efforts, and continues to make various economic and technological proposals to the international community.