Section 4. Maintenance and Promotion of the Free Trade System
It can be said that the world economy has achieved its present-day development and Japan has been able to realize its present prosperity largely due to the international trade system based on the principles of freedom and non-discrimination.
However, as already stated earlier, the postwar international economic order is now coming to a major turning point, and a new order and stability are gradually being formed in the spirit of international solidarity.
For the world economy to achieve a greater expansion, Japan must, of course, promote its liberalization of trade and capital and also try to maintain a balance in the external aspects of its economy to help stabilize the international economy if it is to fulfill its responsibility commensurate with the scale of its economy and positively contribute to the stable expansion of world trade and the formation of an international economic order.
Based on this understanding, Japan announced the adoption of comprehensive external economic measures in June 1971 and decided on such measures as the promotion of the liberalization of imports, the lowering of tariffs, studying the removal of non-tariff barriers and the promotion of the liberalization of capital. (The number of residual import-restricted items has been reduced to 33 as of April 1, 1972.)
Furthermore, recognizing that it was necessary to open a new international round to follow the Kennedy Round at an early date to maintain and strengthen the free trade system, Japan took a positive attitude toward the convening of such an international round at the 27th general meeting of GATT last year. And in February 1972, the Government issued a joint statement with the United States to the effect that the two countries will open diverse and comprehensive negotiations in 1973 within the framework of GATT. The EC and many member countries of GATT support the idea of starting multilateral negotiations in 1973, and there is a growing awareness of the need for establishing a new trade system. Japan positively supports discussions by the OECD on the future international economic system, and, for the promotion of free trade in the future, it will become necessary to adjust internationally matters covering a wide range of fields, such as tariffs, non-tariff barriers, the problem of farm produce, multi-national corporations and the environmental problem. In view of these problems, it can be said that Japan is required to carry out external economic measures from a comprehensive point of view.