In the current situation, Japan should be acting as the engine of Asian economic recovery by offering a healthy, open market to its neighbors' exporters. Perhaps, because of its own continued weakness, Japan has not assumed that role. First and foremost, we would like to see Japan exert more leadership in pursuit of increased openness in the world trading system. Insular thinking in an economic powerhouse such as Japan can have negative effects worldwide. Japanese officials often warn against protectionism in the US and urge that America set the example.
Japan needs to do so as well, by itself offering broad market access for foreign goods and services.
We are moving into a new WTO round. Japan should seize this opportunity to lead the world toward more open markets. Another area where we very much want and need Japan to exert leadership is in the new area of electronic commerce. The guiding first principle should be the free flow of information and electronic commerce transactions. As of now, not one member of the WTO imposes customs duties on electronic transmission imports.