Organisation for Economic Co-operation and Development (OECD) Council at Ministerial Level
(Outline and Evaluation)

ⅰ. Attention was attracted by what kind of message the OECD, a group of industrialized nations, would be able to present regarding the negotiations for the launch of a new round of trade negotiations before the Fourth WTO Ministerial Conference in Qatar in November.

ⅱ. As a result of the deliberations, ministers:

ⅲ. The OECD carries out various analyses and other diagnostics using its sophisticated analysis capabilities. One such type of analysis concerns the multifunctionality of agriculture, and the importance of this work was indicated in the Communique. Furthermore, as regards fisheries, the Communique contained that the relationship between sustainable resource management and trade liberalization must be addressed.

ⅳ. Such proactive content will increase momentum toward the launch of the new round.

Japan (ⅰ) emphasized that the new round should deal with far-reaching agenda encompassing revisions to existing rules, including those concerning tariff reductions on industrial products and antidumping, and the drawing up new rules for investment and other practices, in addition to the "built-in agenda" (agriculture and services); (ⅱ) explained that in terms of specific measures taking developing countries into consideration, it was actively dealing with promotion of market access for industrial products and enhancement of the capacity building of developing countries; and (ⅲ) noted that Regional Trade Agreements (RTA), which have been expanding in recent years, must complement and strengthen the multilateral trade system, similar to the way the Japan-Singapore Economic Agreement for a New Age Partnership aims to.

ⅰ. In light of the United States declaration of nonsupport for the Kyoto Protocol, attention was attracted by what kind of message the OECD member countries would issue to the international community toward the resumed Sixth Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP6) in July.

ⅱ. Despite conflicting opinions involving references to the Kyoto Protocol and the resumed session of COP6, Japan endeavored to have OECD countries, which should take the lead in acting on climate change, issue a positive message in such a form as to incorporate the United States.

ⅲ. The talks, although wrought with difficulties, resulted in the following statement: "While recognising our differences over the Kyoto Protocol, OECD governments are determined to work together to address climate change and will participate constructively in the resumed COP6 in Bonn. For a large majority of OECD countries this means seeking entry into force of the Kyoto Protocol by 2002, with timely ratification processes, and with the broadest possible support of the international community."

Furthermore, on the agenda were how to simultaneously realize economic growth, environmental protection and social development, and utilization of market mechanism methods, such as the emissions trading system and environment related taxes, were supported by OECD member countries toward this end. Moreover, implying that it would contribute to the World Summit on Sustainable Development due to be held in South Africa next year, the OECD pledged that it would develop an index for quantifying the degree of achievement of sustainable development, aiming to use it in its review process.

As regards the Japanese economy, one focal point was how the economic policies of Japan's new administration, including the Emergency Economic Package announced in April, would be evaluated.

The Communiqué affirms a shared recognition that, "In Japan, prospects for a self-sustained recovery in the short term are uncertain while prices continue to decline and government debt is increasing," and states that, "Monetary policy needs to provide ample liquidity until consumer price inflation stays at or above zero," and "a credible medium-term strategy for fiscal consolidation and structural reforms must be developed without delay." It also states, "We welcome the Japanese authorities' strong intent to resolve balance sheet problems in the financial and corporate sectors and to enhance structural reform in the securities and real-estate markets. Vigorous implementation of this strong intent is essential and regulatory reform should be quickened." This could be said to have expressed the strong hopes on the Japanese Government to address economic policy and structural reforms.

a. In keeping with the fact that the buoyant United States economy of the 1990s is said to have resulted from the arrival of a "new economy" derived from the use of information and communication technology (ICT), results analyzing the causes of growth disparities among member countries carried out by the OECD two years ago were submitted at this year's ministerial meeting in the "Growth Project" report. The report attaches importance to the influence ICT exerts on economic growth, while at the same time indicating the need to concurrently enhance economic fundamentals, assist technological reform, invest in human capital as well as stimulate corporate start ups.

b. As regards food safety, which has been attracting public interest recently, with the science- and rule-based approached confirmed as fundamental, a consensus of opinion was reached that in cases where the scientific evidence is insufficient and precaution is applied to address the risk of food safety, measures taken should be subject to review and on-going risk analysis, consistent with the relevant WTO agreements. Furthermore, it was mentioned in the Communique that an international conference on biotechnology will be held in Bangkok in July.

c. The OECD has been working to eliminate harmful tax practices in OECD member and non-member countries (including "tax havens" of non-member countries). Recently, discord was feared among member countries owing to the statement by the United States new administration that it would review its position regarding these activities. However, it was finally built into the Communique that ministers look forward to the conclusions of the OECD project.

d. In addition, prevention of bribery, public governance and corporate governance, among others, were raised as challenges being addressed by the OECD that advanced societies should tackle.