WORLD TRADE
ORGANIZATIONWT/MIN(98)/ST/116
20 May 1998
(98-2174)
MINISTERIAL CONFERENCE
Second Session
Geneva, 18 and 20 May 1998Original:  English
JAPAN
Statement Circulated by Mr. Masahiko Koumura,
State Secretary for Foreign Affairs
JAPAN'S POSITION ON WTO ISSUES
THE PRIMACY OF MULTILATERAL TRADING SYSTEM
For the last 50 years the multilateral trading system has been a solid basis for world growth
and prosperity.  The WTO has functioned well since its foundation to further the objectives
underlying the multilateral trading system, and achieved such remarkable success stories as the
conclusion of ITA, basic telecommunication and financial services negotiations.  The effective rolethe dispute settlement mechanism has played is also worthy of particular mention.  This Second
Session of the Ministerial Conference should be an occasion to celebrate the success of the
multilateral system as well as to reaffirm its primacy in ensuring global economic growth.
Regionalism
Recent years have seen the proliferation of initiatives for further regional integration, in
which many major trading partners are engaged.  Japan has concern that proliferation of regional
agreements may undermine the multilateral trading system.  Japan thus maintains that more vigorous
efforts are necessary to make sure that all initiativ es for regional integration be consistent with the
WTO and complementary to the multilateral system, so that they will help strengthen the multilateral
system further instead of undermining it.  Impr oving the rules on regional trade agreements is
paramount in this regard.  Promoting global liberalization is the best means to contain discriminatory
regional initiatives.
Asian economic crisis
Japan is concerned in this context with the possible emergence of protectionism as a result of
the recent Asian economic crisis.  In overcoming the present difficulties we underline the importance
of continuous liberalization of trade and investment, together with appropriate domestic economic
reform, which will lead to subsequent economic recovery.  Japan thus calls on all Members at least tomaintain the current market access and refrain from taking any restrictive measures inconsistent with
WTO rules.  For its part, Japan remains firmly committed to multilateral trading system, and is
making utmost efforts to achieve a swift recove ry of its economy, with the recent comprehensive
policy package to be implemented without delay.
IMPLEMENTATION OF THE URUGUAY ROUND AGREEMENTS
Faithful realization of what the Members have agreed or decided is a testimony to the
effectiveness of WTO.  Implementation of Uruguay Round Agreements is a vital part of it, and JapanWT/MIN(98)/ST/116
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would like to call upon all the Members to be cooperative on this.  Japan is also keenly aware of the
difficulties the developing Members now face in this respect, and intends to further extend its
assistance, through various schemes ranging from human resources development to infrastructure
building.
Review of the Dispute Settlement Understanding
Since the mechanism has functioned effectively, the review should focus on improvements in
the selected areas within the current structure of the mechanism with a view to further enhancing its
fairness, effectiveness and credibility.  Japan also views that due consideration should be given to the
increased burden entailed for Members and the mechanism as a whole.   Japan will actively contribute
to the review process.
BUILT-IN AGENDA AND COMPREHENSIVE NEGOTIATION
Although the multilateral trading system has serv ed to a great extent to global growth and
prosperity, continuous efforts are needed to secure the benefit of multilateral system.  In this context,
Japan has stressed the significance of effective implementation of the built-in agenda in accordance
with agreed time-frames and advocated comprehensive negotiations for trade liberalization.
Agriculture
For Japan, agriculture was the largest domestic issue in the UR negotiation.  Japan would thus
like to stress first of all that it has implemen ted the Agreement on Agriculture faithfully and never
failed to do so in spite of very strong objections to the Agreement, even with the severe domestic
agricultural situation we now face due to our minimum access commitment and current surplus in
domestic production.
As to future works, we will enter into negotiation in accordance with the framework
stipulated in Article 20 of the Agreement on Agriculture including its agreed time-frame, and take
account of all the elements contained therein, including non-trade concerns as well as issues related to
developing countries which have not been sufficiently considered in the UR negotiation.
Trade in services
Trade in services will remain a driving force of global economy as long as we maintain our
commitment to its further liberalization.  Japan would like to stress that we should redouble our effort
to accelerate the process of information exchange activities so that we will have completed our
preparatory work by the time the next round of negotiation will commence.
Comprehensive negotiation
Since its accession to the GATT, Japan has been a constant advocate of multilateral system,
and has taken numerous initiatives in enhancing the GATT/WTO regime.  Against the above
background, Japan has decided to advocate comprehensive negotiations for trade liberalization fromthe year 2000, including industrial tariffs, rules on investment and other new areas in addition to
agriculture, trade in services and other areas where negotiations are "built in" the WTO Agreements.
NEW ISSUES
Multilateral trade regime must be kept up-to-date to serve its objectives, and in this sense
WTO has to tackle new issues that the global economy now face.  A number of significant issues arebeing handled in relevant working groups and other fora in this arena.WT/MIN(98)/ST/116
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Japan's stance on those matters are as follows:
Trade and environment
Taking into account intensified debate on trade measures for environmental protection, Japan
is of the view that further efforts should be made to ensure that environmental concerns be integrated
with WTO Agreements.  A certain framework is necessary to ensure the compatibility of trademeasures pursuant to Multilateral Environmental Agreements (MEAs) and WTO Agreements.  Japan
would also like to call on other Members to support comprehensive analysis on the impact of trade
liberalization on the environment.
Trade and investment
Japan believes that the recent Asian economic crisis highlighted the importance of
establishing a multilateral framework for investment.  This would further strengthen the stability and
predictability of investment environment and t hus help ensure growth of developing economies
through steady flows of investment.  Japan will remain active on this issue and intends to play an
important role in examining possible rules on investment within the WTO framework.
Trade and competition policy
Japan will also remain proactive on this issue and encourage all the Members to address all
relevant issues in the Working Group.  Multilateral disciplines of trade measures, particularly thoserelated to anti-dumping measures, must take into account competition policy perspective and the
Working Group should further address this issue.  Japan also supports the work concerning the impact
of competition policy on trade, although establishing multilateral rules in this aspect may be rather
premature.
Transparency in government procurement
Work on this issue constitutes an important step to extend a basis of multilateral government
procurement rules.  Japan would call on the Member s to set a time-frame to come up with a draft
agreement and make the maximum efforts to conclude an agreement by the end of 1999.  In this
context, Japan also strongly expects Members not party to the Agreement on Government
Procurement to join the ongoing work for improvin g the existing rules and to conclude the work by
the commencement of the broad-based negotiations under the WTO.
Electronic commerce
While electronic commerce has become widespread rapidly and served speedy cross-border
transactions, discussion has not been exhausted on how it is dealt with in WTO context.  Japan has
thus proposed that we should start a comprehensive work programme of its relation with the WTO
Agreements, and that in the meanwhile we should refrain from imposing undue restrictions on
electronic commerce and agree to introduce no new measures that would result in application ofcustoms duties on electronic transmission until the Third Session of the Ministerial Conference,
without prejudice to the outcome of the programme.
Accession to the WTO
In order to enhance universality of the WTO me mbership, Japan is in strong support of the
early accession to the WTO of all the applicants on the basis of adherence to the WTO rules andmeaningful market access commitments.  Of particular importance is the accession of major trading
partners like China and Russia, which Japan wishes will participate in the negotiations scheduled toWT/MIN(98)/ST/116
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start by the end of 1999.  Japan is determined to work together with the applicants and other WTO
Members to accelerate the substantive negotiations on protocol issues and market access.
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