State Minister Ota Visits Indonesia

1. G20 Trade Ministers' Meeting

(1) Overview

• On September 22 (Thu.) and 23 (Fri.), the G20 Trade, Investment, and Industry Ministerial Meeting was held in Bali, Indonesia. As representatives of Japan, State Minister Ota and Mr. Takagi Kei, Parliamentary Vice-Minister for Foreign Affairs, attended the meeting.
• At the meeting, ministers from the G20 countries held lively discussions on WTO reform, the role of a multilateral trading system in strengthening efforts to fulfill SDGs, the promotion of sustainable investment for economic recovery, and other topics.

(2) Comments by State Minister Ota (excerpt)

　State Minister Ota made the following comments in the sessions listed.

(The role of a multilateral trading system in strengthening efforts to fulfill SDGs)

• In order to fulfill the SDGs, a challenge that we all face, it is essential for both developed and developing countries to strengthen and maintain a free and fair multilateral trading system with the WTO at its core.
• It is especially important for vulnerable developing countries that rely on imports, and the G20 must take the initiative to implement it reliably. The G20 is expected to maintain open markets amid disruptions in the supply chain caused by the pandemic and Russia's aggression against Ukraine.
• Regarding environmental sustainability, we want to work on procedures to quickly ratify the Agreement on Fisheries Subsidies in each country, and to discuss remaining issues of contention. In addition, Japan would like to continue discussing regulatory approaches and other subjects with like-minded countries of the WTO in order to spread the use of products and technologies that contribute to reducing carbon emissions.

(WTO reform)

• The WTO's activities are essential to achieve the SDGs, and reforming the WTO is an urgent issue, as it is being pointed out that the WTO has become dysfunctional.
• In addition, Japan hopes to advance discussions at the G20 to have a complete and well-functioning dispute settlement system by 2024 so that we do not lose governance of the world economy based on the rules of the WTO.

(Promotion of sustainable investment toward economic recovery)

• Methods of recovering the economy—while eradicating poverty, one of the aims of the SDGs—and achieving environmental sustainability are not mutually exclusive. For example, efforts to achieve carbon neutrality should be viewed positively as a driving force for new growth, and we must promote policies for this.
• It is important to bring about innovation through research and development. In addition, we must recognize various paths depending on each country's circumstances when making transitions. It is also important to be actively involved with emerging countries and regions through financial support and human resource development.
• In addition, in order to freely distribute technologies and products necessary for decarbonization, it is necessary to not only abolish tariffs, but also improve the environment through measures such as revising or abolishing regulations that obstruct distribution.
• The G20 should work together to implement policies that will balance economic growth and sustainability.

(Sustainable and inclusive industrialization through Industry 4.0)

• It is necessary to sophisticate industries using digital technology and develop human resources in order for society as a whole to develop inclusively.
• As part of its cooperation with other countries, Japan has established the Centre for the Fourth Industrial Revolution Japan in cooperation with the World Economic Forum and Asia Pacific Initiative, and launched the ASIA-Japan Investing for the Future Initiative as a Japan- ASEAN initiative.
• In these activities, ensuring competition and discipline on a level playing field is important. We should be concerned about harmful government support and demands for technology transfers.

(Digital trade, sustainable GVCs)

• Digital trade will expand opportunities for people and companies in developing countries to take part in the global economy, and will provide solutions to the digital divide. In particular, firm rules regarding handling data and facilitating trade for promoting digital trade are essential to increasing value chain resilience.
• A fundamental concept necessary to develop them is Data Free Flow with Trust (DFFT), which aims to promote the flow of data by ensuring the reliability of privacy, security, and intellectual property. E-commerce negotiations in the WTO are important for achieving DFFT, and we want to aim to make an agreement soon.
• It is also necessary to make permanent the moratorium on imposing customs duties on e-commerce. Imposing tariffs on data transfers is also undesirable for companies in developing countries that play a part in value chains, as it can cause companies in related countries to miss out on business opportunities due to increased costs.
• Through activities such as these, Japan intends to cooperate with other countries to improve resilience in supply chains and value chains that use digital trade.

(3) Outcome document and other data

Not released at this time.

2．Meetings with participating ministers and officials

State Minister Ota took the G20 Trade, Investment and Industry Ministerial Meeting as an opportunity to hold meetings with Mr. Mustafa Tuzcu, Vice Minister of Trade of the Republic of Turkey; Ms. Cecilia Todesca Bocco, Secretary for International Economic Relations for Foreign Affairs, the Republic of Argentine; Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, the United Arab Emirates; Mr. James Philip Duddridge, Minister of State of International Trade, the United Kingdom; and OECD Deputy Secretary-General Ulrik Vestergaard Knudsen.
During the meetings, the leaders exchanged views on strengthening bilateral economic cooperation, the G7 Trade Ministers' Meeting to be hosted by Japan next year, the Expo 2025 Osaka, Kansai, and other topics.

Division in Charge

Multilateral Trade System Department, Trade Policy Bureau