Asia-Pacific Economic Cooperation (APEC)

(1) Session on the global economy and Leaders’ Retreat 1: “Innovative Growth, Inclusion and Sustainable Employment in the Digital Age”

• (i) A discussion took place on ensuring the regional and global economic recovery and on measures for quality growth, structural reform, ease of doing business, promoting the development of quality human resources and strengthening the competitiveness and innovation of micro, small and medium-sized enterprises.
• (ii) Prime Minister Abe’s main comments:
  • We should remain committed to the “three arrows” of monetary and fiscal policy and structural reform.
  • Even amid the declining population, Japan will take firm action to address the problem of population decline itself, while improving its potential growth rate. To that end, Japan is advocating the “productivity revolution” and the “human resources development revolution”, and will make an all-out effort.
  • Japan is aiming for a “virtuous cycle of growth” in the Asia-Pacific region, and will proactively contribute to digital trade, the “Asia Health and Well-Being Initiative” for realizing UHC [note] and responding to aging societies, promote sustainable agriculture and energy cooperation.

[note] UHC (Universal Health Coverage): A situation in which all individuals are able to receive healthcare services such as appropriate prevention, treatment and rehabilitation when necessary at an affordable cost.

(2) Working Lunch “Fostering a Shared Future”

• (i) The future direction of APEC, and measures for enhancing APEC’s presence were discussed.
• (ii) Prime Minister Abe’s main comments:
  • The core of APEC’s activities is liberalization of trade and investment.
  • APEC should continue to collaborate with the industrial community and engage boldly with new challenges such as digital trade, under the flag of “liberalization”.

(3) Leaders’ Retreat 2: “New Drivers for Regional Trade, Investment and Connectivity”

• (i) A discussion took place on APEC’s role in regional trade, investment and connectivity, and on quality infrastructure investment, supply chain connectivity, services competitiveness, internet and digital economy, e-commerce, initiatives for the eventual realization of the Free Trade Area of the Asia-Pacific (FTAAP), and a multilateral trading system.
• (ii) Prime Minister Abe’s main comments:
  • Free trade is the cornerstone of peace and prosperity. Protectionism leads to the contraction of the global economy as a whole, and any economy gains no benefits.
  • Ensuring a “level playing field” worldwide is the premise for fair distribution of the fruits of free trade. Along with rolling back market-distorting measures, it is important to pursue the reform of state-owned enterprises and remove “unfair trade practices”.
  • It is important to strengthen the rule-based multilateral trading system as embodied in the World Trade Organization (WTO). We should unite toward the success of the 11th WTO Ministerial Conference (MC11) in December.
  • It is also significant to promote ambitious regional trade agreements. As a flagbearer for free trade, Japan will proactively promote economic partnership agreements and investment agreements, including the Trans-Pacific Partnership (TPP) and a high quality Regional Comprehensive Economic Partnership (RCEP). In particular, it is a powerful message to the world that an agreement in principle for the early entry into force of the TPP11 was reached at the TPP Ministerial Meeting.
  • With regard to the FTAAP, Japan proposes to maintain a high level of ambition and steadily implement the initiatives necessary for the future realization of the FTAAP.
  • Quality infrastructure is essential for responding appropriately to the Asia-Pacific region’s vast demand for infrastructure and for strengthening connectivity.

Papua New Guinea is scheduled to host APEC next year, 2018.

• (1) As the culmination of international economic meetings of this year, Japan’s proactive stance for establishing “free and fair” trade rules was emphasized.
• (2) In the discussion on the importance of realizing inclusive and sustainable economies, Japan’s initiatives, including the “productivity revolution”, the ”human resources development revolution”, the “Asia Health and Well-Being Initiative”, “digital trade” and “energy cooperation”, were disseminated to the world.
• (3) Issues that Japan considered as important were incorporated in the Leaders’ Declaration, including ensuring a “level playing field”, supporting a multilateral trading system, investing in quality infrastructure, monetary and fiscal policy and structural reform based on the “three arrows” of Abenomics, inclusive economic policies including enhancing women’s economic empowerment, and disaster risk reduction.