WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/17 
1 December 2009 
 (09-6076) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
JAPAN 
 
Statement by Mr Naoshima
 
Minister of Economy, Trade and Industry  
   I would like to start by expressing my sincere thanks to President Merz, Federal Councillor Leuthard and th e people of Switzerland for hosting the Seventh WTO Ministerial. 
 
(What a Change of Power means:  Creating a "New Japan")   As a result of the general elections held in A ugust, Japan has realized a change of power.  The 
birth of a new administration is a chance to reso lve longstanding problems and build a "New Japan".  
With the mandate given us by the people of Jap an, we will overcome en trenched interests and 
undertake policies that will truly benefit the people as a whole. 
  The new administration has promised to restor e a sense of security to  the daily lives of the 
Japanese people.  We must rebuild trust in the soci al safety net and secure employment.  Japan needs 
a strategy to create new demand, both domestic and external, and ensure sustainable mid to long-term 
growth. 
 (A New "Growth Strategy":  Further Opening Up Japan)   A central pillar of that strategy is to open up Japan further to the world while at the same time 
stimulating domestic consumption, so as to make Japan more attr active to people, goods and money 
around the world.  Through this, Japan will facilitate  the growth and integration of the economies of 
the Asia-Pacific, and grow togeth er with the region as a whole. 
  Next year, Japan will develop a growth strategy  for the Asia-Pacific as the chair of APEC.  
The two strategies will operate in tandem to secure growth in this region. 
 
 To revitalize the world economy, we have to  conclude the Doha Round and strengthen the 
multilateral trade system.  This is the foundation for the growth strategies for both Japan and the 
Asia-Pacific region.  
(Trade as the Engine of Development) 
  The Doha Round is a "Development Round".   In Asia, nations at various stages of devel opment have increased the competitiveness of their 
manufacturing sectors through a division of labour w ithin the region, and have followed each other 
onto a path of self-sustaining development.  For th e future of the world economy, we need to see WT/MIN(09)/ST/17 
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  developing countries, not only in Asia but throughout th e globe, enter this growth trajectory.  Trade is 
the engine to achieve this.   As the Doha Round stalls, free trade agreements  are being concluded with countries that have 
strong growth potential and large domestic markets.  Less-developed countries tend to be left behind. 
 
 It is my hope that all developing coun ties actively participate in maintaining and 
strengthening the multilateral trade system.  Japan's  "One Village, One Product" initiative has assisted 
the development and marketing of goods from deve loping countries.  We will continue our active 
efforts to help developing countries be lieve in the benefits of trade. 
 
(Taking Stock of the WTO's Activities:  (1) Monitoring Trade Policies)   The WTO has three main missions.  
 The first is monitoring trade policies.  Since the financial and economic crisis erupted last 
year, the world has been fortunate not to suffer a chain reaction of protectionism as in the 1930s.  With high unemployment all over the world, however, there are many cases, even today, of "buy local" provisions in government procurement and of trade remedies being applied too readily. 
  I highly appreciate the fact that the WT O has dissuaded many Members from taking 
protectionist measures through its surveillance of tr ade policies.  I hope the WTO will maintain its 
vigilance, and call on Members and observers to refrain from protectionist measures and to rectify 
those already in place.  ((2) Administrating the Dispute Settlement System) 
 
 The second role of the WTO is to administer th e dispute settlement system.  Just a few weeks 
ago, the 400
th case since the establishment of the WTO dispute settlement system in 1995 was 
submitted.  At the outset, the developed countries we re the main users of this system, but today, 
developing countries are using it in increasing numbers too.  
 In the past, Japan has seen power politics dict ate the way many trade disputes were handled.  
Today, resolving disputes in accordance with estab lished rules, without unduly politicizing them, has 
become the accepted practice.  Japan welcomes whol e-heartedly the high reputation that this system 
has secured.  
 This system, however, can easily lose its effe ctiveness if its findings are not respected by 
Members.  All Members have a duty to implement decisions promptly, even if they are unfavourable to themselves.  ((3) Advancing Trade Rounds)  
 For the past few years, Members have been e xpending a vast amount of their energy into the 
third aspect of the WTO, that is, the multilateral ne gotiations to liberalize trade.  Unfortunately, the 
Doha Round has not yet reached the finish line.  We must all strive further to achieve an early 
conclusion.  
 This Round will bring the benefits of growth and development through trade liberalization to 
all 153 Members of the WTO.  It will improve market access by reducing or removing tariff and non-tariff barriers and liberalizing trade in services.  It  will also strengthen trade rules, reinforcing the 
free trade system.  In this regard, I am keen to make anti-dumping disciplines stricter and more 
effective.  WT/MIN(09)/ST/17 
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   The Doha Round includes negotiations on the liberalization of environmental goods and 
services.  This will help spread products and technol ogies that reduce the environmental load, and is a 
vital part of combating climate cha nge.  I would like to stress that li beralizing trade in energy efficient 
products is especially effective in this regard.  
 Some like-minded nations, including Japan, ar e considering conducting discussions with a 
view to achieving an early agreement to liberali ze trade in environmental goods.  I hope that other 
interested Members will join these discussions, and provide fresh impetus to the Round as a whole. 
  With momentum building to advance climat e change policies, we must show, through 
concrete actions, that trade is an important part of policies to combat climate change. 
 (The Future of the WTO:  Evolving in Step with the World Economy)   Lastly, I will touch upon mid to long-term issues beyond the Doha Round.  Nearly 15 years 
have passed since the WTO was established.  During that time, great changes have occurred in the 
world, such as the evolution of globalization, the growth in importance of climate change policies, 
and the rise of the emerging nations.  (Harmonizing Domestic Regulations)  
 Globalization has changed business activities in a profound way.  In the past, entering foreign 
markets meant exporting goods and services.  Today, gl obalization has reached a new stage, with the 
greater and more active movement of people and di rect investment by companies providing goods and 
services.  
 To better deal with these circumstances, we must not only reduce barriers at the border, but 
also harmonize domestic regulatory systems that affect the movement of people and direct investment.   At times, regulations can become obstacles in unexpected ways.  For instance, business 
alliances have been halted by the competition authoriti es of a third country.  In order to facilitate the 
smooth international operation of firms, domestic regulatory framewo rks should be coordinated to a 
greater extent, while leaving room for states to pursue different national policies based on their different circumstances.   It may seem that harmonization of widely di ffering domestic regulation schemes could be 
more realistically pursued through bilateral FTAs or  as part of regional integration than with the 
153 Members of the WTO at once.  The ultimate goal, however, is the removal of  barriers to trade and 
investment in the whole world.  The WTO shoul d actively shape discussions  concerning investment 
and competition policy.  (Trade and Environment) 
 
 Next week, key meetings on the climate change  negotiations will begin in Copenhagen.  As 
the Minster responsible for industry and energy as well as trade, I am deeply involved in those negotiations, too.  
 As climate change policies begin to have a real impact on the international competitive 
environment, we must ensure that there is no proliferation of protectionism under the guise of 
protecting the environment.  At the same time, we must avoid a flood of trade disputes from arising due to uncertainty as to which measures are allowe d to protect the environment, and which are not.  
The WTO must refine the rules in th e area of "Trade and Environment". WT/MIN(09)/ST/17 
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  (Sharing Responsibility between Deve loped and Developing Countries) 
  The third great change is the rise of the em erging nations.  The days when the principal 
developed countries could establish the framework of  international negotiatio ns by themselves are 
over.  Negotiations have become even more complicated than before. 
 
 Whether we look at the Doha Round or the cl imate change negotiations, a common theme is 
what responsibilities the emerging economies will shoulder to match their increasing presence on the world stage.  
 Global media coverage tends to focus on the confrontation between developed countries, with 
weakening economies and a tendency to turn inwards,  and the emerging countries, that wish to avoid 
any greater international burden as much as possible.   If we can, however, keep in sight our common goal of realizing a better future, we should be 
able to conclude these difficult negotiations.  Th e key lies in a shared sense of responsibility among 
developed and developing nations.   Without concluding the Doha Round, there is  little hope of establishing an agreement on new 
issues.  Recalling the common objective of finalizin g the DDA in 2010, I would like to ask the other 
Ministers to consider a stock-taking exercise in early 2010.  Let those of us gath ered here today, move 
the Round towards a conclusion, through our combined political will. 
  I thank you for your kind attention.  
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