International Economics and International Economic Approaches

   The global economy continues to enjoy a high rate of growth, yet factors for uncertainty can be found in the global imbalance and the continuing high oil prices. At the G8 St. Petersburg Summit, active discussions were held on the issues of energy security, trade, and the protection of intellectual property rights.

   The maintenance and reinforcement of the multilateral trading system has brought prosperity to the world economy and has been the central pillar on which the development of the Japanese economy has rested. Japan has proactively entered into negotiations in the World Trade Organization's (WTO's) Doha Round, including participation in multiple Ministerial-level meetings, with the objective of concluding negotiations within 2006. The G8 Summit in July also called for greater flexibility from all countries to enable the conclusion of the Round's negotiations. At the end of July, the gaps in the stances of the countries remained unbridgeable, mainly with regard to the three issues of access to agricultural markets, agricultural subsidies, and NAMA (non-agricultural market access), leading to a suspension of negotiations. However, in November, separate negotiating groups restarted discussions at the officials level.

   In addition, as a supplement to the WTO, Japan is actively engaged in EPA negotiations. In July, an EPA between Japan and Malaysia, Japan's third such agreement, entered into force. Moreover, an EPA with the Philippines was also signed and an agreement in principle on major elements was reached with Chile, Indonesia, and Brunei.