Japan's Views on APEC

by Japanese Government Spokesman (Press Secretary)

Official of the International Press Division of the Ministry of Foreign Affairs: Good afternoon. I would like to start the briefing by Japanese Foreign Ministry Press Secretary Hiroshi Hashimoto.This briefing is on the record. Press Secretary Hiroshi Hashimoto of the Ministry of Foreign Affairs: Good afternoon, ladies and gentlemen.I think my colleagues have distributed two different kinds of paper. One is a copy of the Prime Minister Murayama's article contributed to The International Herald Tribune and another paper is a copy of the speech made by Mr. Kono. I don't think I will repeat the fundamental positions of the Japanese Government on the APEC. When you would like to know something about the basic stance of the Japanese position, would you refer to those two papers. The press in Japan and abroad seems to have focused too much on those general principles of the Action Agenda which the APEC members have yet to agree on. I would like to draw your attention here to other points which are also important when we think of an outcome to the Osaka APEC Meeting. First, the Action Agenda sets forth the principles and guidelines for translating the goals of the Bogor Declaration into action. As such, it is the first concrete step for the liberalization and facilitation of trade and investment in APEC. In this way, APEC is now moving on from a stage of "visions" and "concepts" to that of "actual implementation of measures." The APEC Osaka Meeting marks the start of the first year of Action. The second point is that the Action Agenda represents a unique Asia-Pacific Way of taking action which matches the present situation in this region a situation characterized by diversity and different stages of economic development among APEC members. This unique way of taking action will be well reflected in the action process, which will stipulate preparation, consultation, implementation and review of the member economies' Action Plans. The Action Plans encompass concerted unilateral actions and collective actions. The unilateral actions are implemented by each member, but in a concerted manner in accordance with the framework established by the guidelines of the Action Agenda. The collective actions are identical actions taken by each member according to the Action Agenda. This combination of two types of actions also reflects a unique Asia-Pacific Way of taking action which best suits the reality of the Asia-Pacific region. Third, open regionalism is one of the most fundamental characteristics of APEC, which will be clearly reflected in the General Principles of the Action Agenda. Fourth, the Action Agenda is a road map towards liberalization and facilitation of trade and investment in APEC by 2010/2020, while the Action Plans, which are of a rolling nature, will be prepared and implemented by each APEC member for the near and medium term. Thus, the Action Agenda encompasses both the attainment of the long-term goals of liberalization and facilitation, as well as near and medium term measures. Preparation for the Action Plans is expected to begin soon after the Osaka Meetings. In this sense, the Action Agenda is not an abstract document for liberalization and facilitation of trade and investment in the remote future, but a practical document which will be translated into action right after the Osaka Meetings. Fifth, the three pillars of the Action Agenda are liberalization, facilitation and cooperation. Economic and technical cooperation aims at reducing economic disparities and encouraging economic and social well-being among APEC members. A new scheme called "Partners for Progress" (PFP), together with various other means, will strengthen this cooperation. Sixth, the Action Agenda includes several concrete measures conducive to facilitating business. The private sector, which represents the real source of regional vitality, is expected to greatly appreciate these measures of facilitation. Seven, the "Initial Actions," which all 18 members of APEC will announce voluntarily, will reflect the strong political will of the members with regard to liberalization and facilitation of trade and investment. These "actions" will consist of concrete and tangible measures, including accelerated implementation of the Uruguay Round Agreements, deepening and widening of the Uruguay Round Agreements, deregulation, and other measures. But of course, these initial actions will be taken voluntarily by each of the APEC members so we have got to wait until the last day, what sort of initial actions will be presented by each APEC member. Having said so, I am ready to answer any questions you may have. Official of the International Press Division of the Ministry of Foreign Affairs: When you ask questions, please come up to the microphone any one of the microphones and say your name and affiliation, thank you.

2. Asian-Pacific Way

Q:In a speech this morning, Foreign Minister Kono said that the unique Asian-Pacific Way of doing things he said a lot of things about what a good thing it was and that added that it would be a triumph for APEC if the Asia-Pacific Way was adopted elsewhere in the world. But, he didn't specify where and I was wondering if you thought that it would be a good idea if the European Union to name one specific place took a more flexible approach to integrating its economies, and so on. What I'm asking is where else, specifically, do you think the Asian-Pacific Way is applicable?

A(Press Secretary): When Mr. Kono said that APEC is based on the unique Asia-Pacific Way, it means that APEC is not a free trade agreement like the NAFTA, the future AFTA. APEC is not based on the customs union or the economic community, which has been realized in Europe. So, in this sense, you can't find any regional sort of arrangement which is similar to APEC. Have I understood you?

Q:He said that it would be a triumph if it was adopted elsewhere in the world.

A: I don't think so. Because when we say a unique Å@Asia-Pacific Way, it is based on the two different actions: concerted unilateral actions and collective actions. Or other action process, which I just mentioned. Consultation mechanism, and so on.

Q: He also mentioned a non-legalistic approach to trade and investment.

A: Yes, when he said that APEC is not an FTA, we are not based on the treaty. So APEC is very different from the WTO organizations, and APEC is not based on trade negotiations on the basis of reciprocity. That is what he meant to say.

Q: But he suggested it would be a good thing if other parts of the world adopted the same approach, and I was wondering which parts of the world he was thinking of.

A: Oh, I see. I'm terribly sorry. I did not understand that point. What he probably meant to say was that if the European Union or the AFTA can be open as FTA, we would very much appreciate it. He's mentioning any regional organization based on FTA, free trade agreements, organizations, or customs unions. Basically, the customs unions and the FTA do discriminate the member states and the outside countries. But APEC is a very different structure which doesn't discriminate the members and the outside countries. Thank you.

3. Incident at the Japanese Embassy in Jakarta

Q: Sorry, I'm asking another question about some 21 youths now occupying the Japanese Embassy in Jakarta. I understand that Japan will not grant political asylum to them. Is there any new development or has Japan changed its position?

A: We have been asking those 21 people what they really want us to do. We noticed that some of them would like to go to other countries. Some of them presumably wish to come to Japan, but there is not a consensus among themselves. So, we would like to confirm actually what they would like to do, whether they would like to leave Indonesia or they would like to stay in Indonesia, or whether they would like to go to any particular country. At the same time, we have been consulting with the Indonesian Government. The Indonesian Government is very cooperative in this, and so we hope that after the confirmations of their wish and after consultations with the Indonesian Government, I think appropriate measure will be taken care of both in the Indonesian and Japanese side, clearly understand and respect the human rights of those and the 21 people. So, I think we can adequately solve the solution in due course. We understand that many of them have been asking that political asylum, but we don't know, actually where they want to go. So, after we confirm their final wish, we will decide what to do.

Q: Did they say they want to go to Japan?

A: If some of them wish to come to Japan we will utilize the existing laws and regulations, but still do not know whether any or some of them really wish to come to Japan or not. Thank you.

4. Goals of the 1995 APEC Meetings in Osaka

Q: I just arrived today and I'm sure I'm not to date on the details of what's been happening the last few days, but as I understand it, the basic purpose of the Osaka Meeting is to make concrete the general declaration which was issued last year, the Bogor Declaration, to fill in concrete details in the program of liberalization by early 21st century and the individual actions to be announced by countries are part of the process, as I understand it. What else is this meeting going to produce to make that declaration more concrete?

A: The immediate task for us, especially the Japanese Government as the Chair of the APEC Meeting is to finalize the Action Agenda, which will translate the Bogor Declaration into actions. This is one of the most important factors. According to this Action Agenda, so-called Action Plans will be prepared and implemented by each APEC member and presumably these Action Agenda will be submitted not this time, but probably right after the Osaka Meetings, the preparations will start. These Action Plans are for the near and medium term measures. In addition to this, all the APEC members will announce the so-called Initial Plans. They will show concrete and tangible measures for liberalization and facilitation of trade and investment now. This is a voluntary plan. And on the 19th you will know what all the APEC members will do in this field. Even the Action Agenda itself has some clauses which are related to the business facilitation measures and some of them are concrete and tangible. Therefore, the Action Agenda is a long term goal for liberalization and facilitation, at the same time, it will have the medium- and near-term measures, too.

5. Draft Action Agenda

Q: Is it correct, as was reported today, that the draft declaration that has been submitted by Japan for the consideration of the other Ministers makes no mention of the 2010/2020 date and the free trade goal that was made in the Bogor Declaration?

A: Well, we don't intend to retreat from the Bogor Declaration at all, so this Action Agenda will touch on these goals, too.

Q: It will make mention of the specific goals of Bogor then? And the free trade?

A: Yes, first of all I would like to say that this Action Agenda will repeat the goals of free trade and liberalization and facilitation of trade and investment by 2010/2020. At the same time, this document will show the so-called principle of comprehensiveness, so not a single sector will be excluded from the principles of comprehensiveness.

Q: Will the phrase "free trade" be used? "Free and open trade" or something to that effect?

A: Liberalization. In any case, I'm terribly sorry, I don't remember the exact wording but when you see the document on the 19th, you will notice that there will be no retreat or derogations from the Bogor Declaration. Yes, please.

6. Mechanisms within APEC

Q: In your opening remarks you blame the messenger, but let me ask you a credibility question. The Action Agenda and the Action Plan -- (A) Are they going to be binding on the member economies, and (B) Is there going to be a monitoring mechanism by the APEC, acceptable to all the members for implementation of the trade and investment liberalization?

A: Legally speaking, this Action Agenda is not binding, but I should say this is politically binding. This is the nature of the APEC. Would you please repeat the second question? Yes, monitoring, this is one of the most important elements at the Action Agenda. The Action Agenda will include the guidelines for liberalization and facilitation and it will include the process of preparation, consultation, implementation review, and so on, which are of a rolling nature, but the content of this paragraph is still under discussion, but this is a unique Asia-Pacific Way, which I emphasized at the beginning.

Q: The Eminent Persons Group had suggested a dispute mediation body within the APEC. Has there been further discussion on this? Are you on the way towards creating one, or have you rejected one?

A: Well, there will be a part which will mention the dispute settlement mechanism, but be patient, as they will talk on this until the document is released.

7. Free and open trade and investment

Q: The Bogor Declaration did not define what was meant by free and open trade and investment. Will the Action Agenda define what is meant by that? If so, can you tell us what it means?

A: Well, as I explained to you, the APEC is not a free trade agreement. It is not the agreement which is similar to the WTO so we do not define the role of trade and free trade and free trade and investment.

Q: If you do not define what is meant by free and open trade and investment, then what are you doing, if you don't know what your goal is?

A: Well, the Bogor Declaration is a strong political rule among the APEC members for liberalization and facilitation and as you know, we are going to announce the initial actions. The APEC members will prepare and implement the Action Plans so that every year you will notice what we mean by liberalization and facilitation. Even if we don't define the word trade, actual process of liberalization and facilitation is going to take place. This is the unique Asia-Pacific Way. In this sense this is very different from the European Union or NAFTA.

8. Target dates for liberalization

Q: One last question. So, if you're not going to define your goal and you're just going to have an ongoing process of liberalization, then essentially that means the dates 2010/2020 are meaningless?

A: I don't think so. If you look at the Initial Actions, if you look at the Action Plans, you will notice that the liberalization and facilitation process will start, so if the process will start, and if, for example, you can find the Initial Actions very substantive, you can't say that it's meaningless. In fact, this is very substantial and very important.

9. Non-discrimination

Q: What is Japan, as the Chair of APEC, doing to reconcile the positions of the United States and China on the issue of non-discriminatory trade in APEC.

A: This is one of the most difficult issues. Up until now the Senior Officials have worked very hard how to reconcile that, but still we have not reached any agreement yet. We will have to ask the Ministers to decide and to settle this issue. So, in this sense, we can neither be optimistic nor pessimistic about this. We will have to ask the Ministers to work hard and reach an agreement.

Q: Does Japan have a view about how that issue should be reconciled?

A: Japan is a Chair. We can't keep aloof ourselves from this issue. So that's what we've been doing now.

10. Definitions of stages of development

Q: Well, not to define the terms of free trade and investment doesn't mean that we will not liberalize our trade and this free trade will be applied to each member of the APEC. Probably our culture is different from the European one, therefore, why we are aiming at free trade in 2010/2020 it's a long term goal, but aiming that each of us will set up our liberalization process. So those two combined, in 2010/2020, we aim at making free trade and investment. All of us have got to go in that direction and developed economies should liberalize trade and investment by 2010, and while developing economies should do that by 2020. That's what I can say for the time being.

A: I would like to go back also on the definition. Will the Action Agenda define which countries will fall in the category of developed economies and which will fall in the developing economies?

11. Most-Favored Nation status

Q: On the America-China thing. How does Japan read the Bogor Declaration's affirmation of the right of APEC members to Most-Favored Nation status? What is Japan's reading of what Bogor means on MFN for China?

A: Again, if we start interpreting something, you may find a lot of anxieties and suspicions, and therefore, we would like to apply it in a very practical way to this. We understand that the American Government has a its own special clause in this relationship, but at the same time, we understand the demands from China which asks for equal treatment among the members. So therefore, as a Chair, this is one of the most difficult issues, but we will do our best and try to solve this issue by the end of the Meeting. I hope this will be the case. We will do our best.

12. Discussions of issues for APEC

Q: Are you any nearer to agreement on the other issues that were holding up the meeting? On South Korea's objections to the text on flexibility and on various countries' objections to comparability?

A: I can tell you that the principles of comprehensiveness, the principle of comparability, principle of non-discrimination, those three are one of the most difficult issues. The Senior Officials have not solved these issues and the Senior Officials will have to ask the Ministers to tackle the issues. We hope that almost all issues can be settled by the beginning of the Ministerial Meeting. Thank you.

Official of the International Press Division of the Ministry of Foreign Affairs: Any other questions? Since there is another briefing starting at 16:30, can we make this the final question.

13. Special treatment

Q: Can you clarify Japan's stand on what it means by special treatment? If you are keeping to the goals of 2010/2020, and there will be no exclusion of any sectors, does it mean that Japan intends to liberalize sensitive sectors at a later date, but still keeping to the deadline? Can you clarify the position please? Thank you.

A: Now, we don't ask for special treatment; instead we say that flexibility is needed. We don't say that Japan asks for exception, but we ask for flexible treatment. This is also one of the most difficult and important issues and again, the Ministers will tackle the issue and we hope that they can make a consensus of this.

Q: What does that mean? Flexible or flexibility in Japan's case?

A: Well, again, if we start defining what does flexibility mean, it will cause a lot of problems, so for the time being I should say, when we say flexibility, it means flexibility. Thank you very much, ladies and gentlemen.