The script of the statement by
Mr. Shintaro Ito, State-Secretary for Foreign Affairs
(Agenda 6. Keeping Markets Open for Trade and Investment)
(I would like to add briefly to Mr. Nikai's statement.) It is important for the OECD in collaboration with the WTO to substantially analyze and discuss the impact of trade liberalization, including the issue of trade distorting effects caused by the current emergency measures. At the same time, cross-cutting knowledge, such as on labor, the environment and investment, is the expertise of the OECD. I encourage the OECD to consider what trade and industry should be like in the 21st century from not merely the viewpoint of economic efficiency, but other unique and various viewpoints.
The location of industries should not be decided only by costs but by seeking an international division of labor taking into consideration more comprehensive comparative advantage. In the field of agriculture, instead of producing the same kind of crop everywhere, the concept of the "Right place for the right product" is to facilitate region-based agriculture in consideration of the conditions and characteristics of each region. I believe this concept can be applicable to industry. The concept of the "Right place for the right product" could contribute to the reduction of environmental burden and increase green growth.
I also commend the OECD's initiatives on "Aid for Trade" and Trade finance. I expect the outcomes of its valuable initiatives including the Services Trade Restrictiveness Index for the post Doha round.
I welcome the OECD's initial report and leading role to monitor protectionist measures on investment. The OECD should also explore a common understanding to ensure coherence among numerous bilateral investment agreements. The Government of Japan is ready to support such an initiative when the OECD decides to begin it.
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