Interview with New
Chairman Utsuda“Pioneering a New
Frontier of Global Trade”

Global Trade,” I took the philosophy of Mr.
Mizukami and added the aspiration to foster thedevelopment of the global and Japanese
economies in tandem through the strengthening of
this exchange of people, goods, finance, andinformation.
Amid progressive economic globalization,

At the 86th General Assembly of the Japan

Japanese companies should not be satisfied withForeign Trade Council, Inc. (JFTC) held on May 31,

their thinking simply to generating earnings and toMr. Shoei Utsuda, chairman of Mitsui & Co., Ltd.,

paying corporate taxes. Companies that areassumed office as the 10th chairman of the JFTC.
JFTC secretariat asked him about subjects such as
the thinking that infuses his new slogan “Pioneeringa New Frontier of Global Trade,” the present
economic environment, and the expected role of
Shosha (trading companies).
− What meaning and expectation do you
imply to your slogan “Pioneering a New
Frontier of Global Trade”?
When Mr. Tatsuzo Mizukami (former chairman of
Mitsui & Co., Ltd.) held office as the third chairmanof the JFTC, he always based his thinking on thespirit of Japan being “a nation based on globaltrade” and the spirit of “free trade,” and he had highaspirations to contribute both to Japan and to theadvancement of the world economy through thebalanced development of exports and imports andeconomic cooperation.
In the slogan “Pioneering a New Frontier of

Shoei Utsuda
Chairman, Japan Foreigh Trade Council, Inc.
(Chairman, Mitsui & Co., Ltd.)respected worldwide need to think through the kind

What is important above all, I believe, is to take aof contribution they should make to society, so incomprehensive view of trends worldwide and think

my view it is important to delve very deeply into thein a broad, forward-looking way about how to“new” aspect of what I refer to as “a New Frontier

overcome the present difficulties by means of freeof Global Trade.”

trade and international cooperation.

I think it's important that, rather than theWe are also seeing changes in the main players

conventional concept of “From Japan, To Japan,”in the world economy. In addition to China andon the trade businesses, we recognize the world

India, which have already been achievingfrom a somewhat broader perspective. This will

remarkable economic advancement, a variety ofenable us to identify the path that Shosha should

other developments are in prospect, for example,

be advancing along, and the frontiers.

as regards South Africa, where the FIFA World Cup
is being held, and Brazil, the first-ever SouthAs

illustratedbytheexistence

oftheAmerican host country of the Olympics, bothsocioeconomic stratum known as the “Base Of theillustrating how such countries are making theireconomic Pyramid” (BOP), there remain many

presence felt more prominently in the world

people in the world who still do not enjoy theeconomy. This paradigm shift, which is arguably of

benefits of technological progress or economica magnitude that figuratively speaking is shifting thedevelopment. Although these people do not have a“earth's axis”, is likely to persist for some time togreat deal of purchasing power, there are certainlycome. We should understand that in the world ofgroups of products and services that they need. By

the future this change will be the norm.

adopting their local perspectives, having a strong
desire to contribute something for the people,
believing that we should be able to do something− What kind of policy proposals are you
considering making?

by means of hard work, I think what Shosha canactually accomplish could be seen.

One of the ways in which JFTC differs from otherorganizations of its kind is the preponderance of its− What is your assessment of the current

overseas business activities. In view of this, I intend

economic environment for the international

to draft and provide policy proposals by looking attrade and investment?

Japan from the overseas perspectives. The
Strengthening of the free trade system on the WTO

Trading companies are particularly heavily

and steps to promote the conclusion of bilateralimpacted by the state of the global economy, evenand inter-regional FTAs and EPAs that supplementcompanies headquartered in Japan. A mixture ofthe WTO are core elements of the JFTC's

factors are at work, for example, the favorable state

proposals, but in addition to these I would like to beof the economies of emerging nations and themore vigorous in making proposals on issues such

uncertainties in the U.S. and European economies.

as the desirable forms of future economic

But it is natural to find both favorable andcooperation and the creation of new global systems

unfavorable situations in different regions. Givenand rules.

this, in my view it is important not to be needlessly
pessimistic, but instead to make judgments calmly

For example, the fields in which there are strong

and to do, in a resolute manner, what needs to beneeds overseas and in which Japan could

done.

contribute are infrastructure projects — such as
railways, electric power generation, and water

There is concern that protectionism will emerge

supply and drainage — and environmental business,

depending on how the world economy recovers.

including projects in the spheres of nuclear powergeneration and high-efficiency coal-fired thermal
power generation. How can Japan best go about
participating actively and assertively in large-scale
overseas infrastructure development of this kind?
Recently we have been hearing a lot of talk aboutstrengthening the cooperation between the public
and private sectors, building an “All-Japan system”
that harnesses the expertise of national and localgovernments and corporations, and promoting“Exports as the System (equipment and theservices)”. To ensure these do not end up as mere
buzzwords followed by inaction, we would like toinvestigate very thoroughly what specific steps
need to be taken.
The cooperation between the public and private
sectors, including local activities at the grass-roots
level, has improved substantially from what theyvalues that are also very important for people ofused to be; however, such partnerships would notother countries when conducting business. I also

be possible if the international competitiveness ofhope to spread universal values such as these

Japanese companies — a crucial factor in sucharound the world through ODA.

arrangements — is at a low level. To enhance
Japan's international competitiveness, I intend toMeanwhile, Japan is the Asia-Pacific Economic

propose measures with such objectives as

Cooperation (APEC) Chair this year. I look forward

promoting the early implementation of corporate

to it being a year in which Japan takes the lead intax cuts and the introduction of institutionalsuch areas as promoting the Free Trade Area of theinitiative designed to enhance innovation.

Asia-Pacific and the conclusion of an economic
partnership agreement in Northeast Asia. What I

I also think that Official Development Assistanceconsider very important, and very worthwhile is to(ODA) is particularly important for Japan to proceed

engage in the cooperation between the public andwith large-scale overseas projects. I intend toprivate sectors with a view to quickly establishingundertake research and make proposals to help

mechanisms that will enable us all to benefit

determine how to make Japan's ODA into

together from Asia's growth, for example, in theeconomic cooperation that clearly has a “humanform of wide-area infrastructure development andtouch”, while also addressing aspects such as afinancial cooperation within the region.

reappraisal of its form, the devising of new
methods, and the development of wide-area social
infrastructure straddling multiple countries.

In addition to making requests and proposals to
the government, I hope to liaise closely with othereconomic organizations in order to make theI believe that Japan as a nation has splendid

JFTC's powers of conceiving and formulating newnational traditions, culture, and social values thatconcepts more multifaceted and multilayered.

compare very favorably with any in the world. I feel

What I envision here is incorporating the standpoint

that, for example, Japanese people's basic attitudeof the trading companies to view the problems andtowards business, which includes traits such as theissues facing the Japanese manufacturing industry

spirit of craftsmanship, absolute commitment toconceived from a cross-industry perspective,

honoring pledges, and punctuality, has universal

seeing this as a composite strategy for Japan, andconsidering the role that the trading companies
can perform.
− What is the main forte of Shosha?
If I put in a word, it is “flexibility”. Shosha haveconsiderable freedom in their business activities asregards what to do and where to do it, for example,
the places and fields in which they operate. Anotherstrong point is their ability to respond speedily tooutside changes. In the past, crises affecting
Shosha were talked about frequently, but on eachsuch occasion Shosha morphed to create new
business models.
Why Shosha have been able to transformthemselves repeatedly is their strong will “not toprotect themselves” or, in other words, not toincorporating Asian growth, but I think that will

adhere stubbornly to vested interests and existing

prove rather difficult. It cannot be accomplishedframeworks, but to take up new challenges instead.

solely from a “From Japan, To Japan” perspective.

− What do you think is expected of Shosha
within Japan's industrial structure?

It is Shosha that can discern the true needs ofcountries undergoing economic development andthen attempt to seek out local requirements and beI think that one of the functions expected of

positioned to do something. It is by being

Shosha is that of sniffing out which goods andacclimatized to each overseas locality, thinking andservices are needed in any given market. Thisacting from the same points of view of the people

doesn't mean some sophisticated activity likeof the country, and by experiencing ups and downs,

market research, but walking around the locality,that the contributions that Shosha are able to makedrinking, eating, and chatting with the local people,

can come to the fore.

listening to their problems and their gripes and their
dreams, and, through that, starting to build a

In moving a business forward, it is important tosensitivity to local needs and gradually formulating

be rooted in the individual countries and regions,

measures that give substance to that.

races, religions, and cultures where you do
business, as well as to take fully into account theAs Shosha can participate in a vast range ofinherent values of the people who actually live inbusiness fields, it is a very challenging, yetthose environments, and what makes them happy.

worthwhile, business in which one can enter
unknown markets, sometimes on the basis of no
more than nebulous intuition.

I reaffirm my belief that we are entering an era inwhich we in the trading companies, armed with acharacteristically enterprising spirit and conceptual− What capabilities will Shosha need to haveability, act as vanguards of Japan in launching into

and what roles will they need to play as

the outside world with resolute determination. I am

they continue to take up challenges?

confident that this will be good for the world, and inturn for Japan.

Recently there has also been a lot of talk about