# (3) Cooperation between Trade, Investment, and Other Official Flows (OOF)

It is a key that the private sector plays a leading role for sustainable growth in developing countries. Also it is important to revitalize private-sector activities such as the development of industry and the expansion of trade and investment. However, in developing countries beset by a

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Japan utilizes ODA and Other Official Flows (OOF $ ^{*} $ ) to support the advancement of small and medium-sized companies in developing countries, the transfer of Japan's industrial technology, and the formulation of economic policies. In addition, Japan supports the environment of the trade and investment and development of the economic infrastructure in order to improve the export capabilities and competitiveness of developing countries.

The World Trade Organization (WTO) Doha Round Negotiations (the Doha Development Agenda) $ ^{*} $ which started in 2001 also emphasizes the promotion of development through participation in the multilateral free trading system by developing countries. Japan has contributed to the trust fund set up within the WTO in an aim to improve the capacity of developing countries to engage in trade negotiations and participate in the global market, thereby gaining the ability to carry out the WTO agreements.

Regarding access to Japanese markets, Japan has implemented the Generalized System of Preferences (GSP), which adopts lower tariff rates than general rates for exports of products from developing countries. In

A Japan Overseas Cooperation Volunteer teaches graduates of a school of home economics in Djibouti. Their products are sold to members of the Japan Self-Defense Forces and others as souvenirs. (Photo: Seico Tamai)

variety of challenges it can sometimes be difficult to set in place an environment that attracts private investment. Therefore supports from the international community are required.

Parliamentary Senior Vice-Minister for Foreign Affairs Chiaki Takahashi meets with WTO Director-General Pascal Lamy at the WTO Third Global Review of Aid for Trade (AfT) Ministerial Level Meeting in Switzerland

particular, Japan provides duty-free quota-free access $ ^{*} $ for Least Developed Countries (LDCs $ ^{*} $ ). In addition, Japan also actively promotes Economic Partnership Agreements (EPAs $ ^{*} $ ), and supports economic growth in developing countries through the liberalization of trade and investment.

recent years, discussions have intensified over Aid for Trade (AfT $ ^{*} $ ) at various international forums, including the WTO and Organization for Economic Co-operation and Development (OECD), as a means of further promoting support by developed countries, including Japan. At the Second Trade Global Review Meeting on Aid for Trade held in July 2009, Japan announced its own new strategy for Aid for Trade called “Development Initiative for Trade 2009,” $ ^{*} $ with approximately 12 billion in total support for trade-related projects in three years from 2009 to 2011. This includes technical cooperation such as the dispatch of 40,000 experts and acceptance of trainees over the same period. The Initiative has garnered high praise from numerous countries.