2 Support for Japanese Companies' Overseas Business Expansion in Promoting Public and Private Partnerships

(1) Promotion of Japanese Companies' Overseas Business Expansion by the Ministry of Foreign Affairs (MOFA) and Accompanying Diplomatic Missions Overseas

The number of branches for Japanese companies holding overseas branches has increased in recent years, reaching 71,820¹¹ as of October 2016. One of the reasons behind this is that many Japanese companies, which underpin the economic development of Japan, have embarked more actively than ever before on expansion overseas, with the aim of further cultivating foreign markets. To incorporate vigorous economic growth abroad, mainly in Asia, into the Japanese economy, support for Japanese companies by the Government has become more important.

In light of this situation, MOFA is actively engaged, alongside the diplomatic missions overseas, in supporting Japanese companies in their efforts to expand their businesses overseas. At the diplomatic missions overseas, all staff, including those responsible for Japanese business support, provide Japanese companies with various information and lobby foreign governments under the leadership of ambassadors and consuls-general, with the aim of providing meticulous and specific support that corresponds with the conditions in the respective regions, and under the motto of being “the most open and responsive government office in the world.” They also offer legal services such as seminars and consultations about local laws. In FY2017, these were provided at 15 diplomatic missions in 11 countries, with a focus on Asia.

Among the activities implemented at diplomatic missions overseas, in addition to consultations about business troubles, the promotion and publicity of the “Japan Brand” for products, technologies, services, and agricultural, forestry, and fishery products by Japanese companies at receptions to celebrate the Emperor's birthday and various other events and exhibitions, also forms an important part of their support for Japanese companies. They actively offer the embassies and official residences of the Ambassadors as publicity spaces for Japanese companies to hold product exhibitions or local governments to hold local products exhibitions and food-tasting events, as spaces for conducting seminars on business expansion, and as spaces for exchanges with local companies and the relevant organizations. A wide range of publicity activities are being implemented, from countries that already have a strong affinity with Japan, to countries that have not had much contact with Japan until now.

Taking the opportunity of the reception celebrating the Emperor's birthday to promote Japanese products (December 7, Embassy of Japan in Russia, Russia)

From the perspective of public-private cooperation and support for companies, it is important not only to support Japanese businesses which are seeking to expand their businesses overseas, but also to support those which already have business interests overseas. In June 2016, the UK held a national referendum on whether to remain or leave the EU. Negotiations towards the UK's withdrawal from the EU are currently ongoing between the UK and the EU. As actions taken by the UK and the EU and the results of their negotiations could have a significant impact on Japanese businesses and the global economy, the Government of Japan launched the Government Task-force regarding the Withdrawal of the UK from the EU¹², chaired by the Deputy Chief Cabinet Secretary, in July 2016. Information was consolidated across all sectors of the government, and Japan's message to the UK and the EU¹³ was adopted at the third meeting of the Task-force and swiftly delivered to the UK and the EU. In these ways, Japan has been engaged in efforts that harness its strategic diplomatic relationship with the UK and the EU.

The fourth meeting of the Task-force was held in January 2017, and Deputy Chief Cabinet Secretary Koichi Hagiuda issued instructions for activities to be implemented in 2017. Thereafter, in response to the UK's official submission of its notice to withdraw from the EU on March 29, the fifth meeting was held on March 30. The sixth meeting was held thereafter on August 28 to prepare for the visit to Japan by the UK's Prime Minister May, which was scheduled on August 30, and the seventh meeting was held on December 18 in response to the decision by the European Council to move into the second phase of UK-EU negotiations on December 15 (in which discussions are to be held on matters including the future economic relations between the UK and the EU).

MOFA has commissioned investigation in Japan, the UK, Belgium, and Germany to analyze the relation between Japan and the UK and Japan and the EU after the UK's withdrawal from the EU. In addition to reporting on the results of this investigation at the 5th meeting, these reports and other materials have also been published on MOFA's website¹⁴.

• 11 MOFA “The Statistics on the Japanese Nationals Residing Overseas”
• 12 The Government Task Force regarding the Withdrawal of the UK from the EU, chaired by Deputy Chief Cabinet Secretary Hagiuda, was established in July 2016. It compiled concerns and requests of the business community, especially Japanese businesses operating in Europe, through the relevant Ministries and Agencies (the Cabinet Office, Financial Services Agency, Ministry of Foreign Affairs, Ministry of Finance, Ministry of Health, Labour and Welfare, Ministry of Agriculture, Forestry and Fisheries, Ministry of Economy, Trade and Industry, Ministry of Land Infrastructure and Transport, and the Personal Information Protection Commission Secretariat). Seven meetings have so far been held (the 1st meeting was held on July 27, 2016, the 2nd on August 18, the 3rd on September 2, the 4th on January 19, 2017, the 5th on March 30, the 6th on August 28, and the 7th on December 18).
• 13 The main points of Japan's message to the UK and the EU are as follows: (1) Japan expects to continue cooperating and collaborating closely for peace, stability and prosperity of the UK, the EU and the international community, (2) Japan expects the maintenance of an open Europe with its free trade system, and an agreement in principle on the Japan-EU EPA during the year, (3) Japan requests securing of predictability in the BREXIT negotiations through an uninterrupted and transparent process, (4) Japan requests the UK and the EU to heed the voices of Japanese businesses to the fullest extent and to do their utmost to cooperate in taking the necessary measures, and (5) Japan would like to cooperate with the UK and the EU so that the process of negotiations for the UK's withdrawal will not cause a major disturbance to the world economy.
• 14 Refer to http://www.mofa.go.jp/mofaj/ecm/ie/page4_002892.html (In Japanese)

(2) Promotion of Overseas Business Expansion of Japanese Infrastructure System

In order to respond to infrastructure demands mainly in emerging countries and promote infrastructure exports by Japanese companies, a “Ministerial Meeting on Strategy Relating to Infrastructure Export and Economic Cooperation,” consisting of relevant cabinet ministers with the Chief Cabinet Secretary serving as chair, was established in 2013. Since then, a total of 35 meetings have been held (as of February 2018). In addition to discussing the formulation and follow-up of the “Strategy for Exporting Infrastructure Systems,” with the aim of strengthening qualitative and quantitative support through the implementation of strategic publicity, this Ministerial Meeting also engages in discussions on issues in the respective fields as well as issues in specific regions such as India and the Middle East (32nd meeting) and ASEAN (33rd meeting).

The first edition of the Infrastructure System Export Strategy was drawn up in May 2013, and it has undergone successive follow-up revisions since. The revised edition for 2017 sets out guidelines based on the “Free and Open Indo-Pacific Strategy,” including support for strengthening physical, institutional, and human connectivity within and among regions, including Asia, Middle East, and Africa, through the development of quality infrastructure based on international standards, the strengthening of the economic and social infrastructure of the relevant countries and securing stability and prosperity for the target regions by promoting the development of the said regions, support towards efficient economic activities by Japanese companies, and supporting business expansion efforts by Japanese companies.

Japan has also been driving forward the dynamic development of trade promotion by the Government, and systemic improvements aimed at the strategic use of ODA loans and overseas loans and investments, and has steadily produced results. For example, during his visit to India in September, Prime Minister Abe attended the groundbreaking ceremony for the Mumbai-Ahmedabad High-Speed Railway Project that will introduce Japan's Shinkansen (bullet train) system, and the two countries exchanged notes on the provision of yen loan of 100 billion yen. Moreover, after the conclusion of the Japan-Philippines Summit Meeting in November, the two leaders witnessed an exchange of notes on the provision of yen loan for the Metro Manila Subway Project, which is expected to utilize the technologies of Japanese companies. As described, steady results have been produced.

Furthermore, with regard to diplomatic missions overseas, MOFA has appointed “officers in charge of Infrastructure Projects,” who gather and consolidate information on infrastructure projects, in the diplomatic missions overseas in countries of focus (192 personnel, at 93 diplomatic missions overseas in 72 countries as of the end of December 2017). This initiative has also proven to be effective.

(3) Promotion of the Export of Agricultural, Forestry and Fishery Products and Food

The Government of Japan has set a goal of expanding the value of the export of Japanese agricultural, forestry and fishery products and food to 1 trillion yen by 2019 (“Economic Measures for Realizing Investment for the Future”). MOFA, in collaboration with relevant ministries and agencies, Japanese companies, local governments, etc., and by utilizing the function and facilities of diplomatic missions etc. all over the world, is energetically promoting the attractiveness of Japanese products. In particular, Japanese business support officers (in charge of the food industry) have been assigned to 58 diplomatic missions overseas in 54 countries and regions to strengthen initiatives to promote the export of agricultural, forestry and fishery products and food.

Although seven years have passed since the Great East Japan Earthquake and the accident at Tokyo Electric Power Company's (TEPCO) Fukushima Daiichi Nuclear Power Plant, some countries and regions have continued to place import restrictions on Japanese agricultural and fishery products and food. MOFA is requesting there countries and regions to consider the abolition of import restrictions as soon as possible based on scientific evidence, by providing them with timely and accurate information and using WTO frameworks in collaboration with the relevant ministries and agencies. MOFA is also working hard to disseminate information about the safety of Japanese food products in countries and regions around the world, with the aim of dispelling harmful rumors about Japanese agricultural, forestry, and fishery products as well as food products.

As a result of these efforts, import restrictions were lifted in Qatar (April), Ukraine (April), Pakistan (October), Saudi Arabia (November), and Argentina (December) in 2017, as well as Turkey (February) in 2018. So far, 26 countries have removed their import restrictions (Canada, Myanmar, Serbia, Chile, Mexico, Peru, Guinea, New Zealand, Colombia, Malaysia, Ecuador, Viet Nam, Iraq, Australia, Thailand, Bolivia, India, Kuwait, Nepal, Iran, Mauritius, and the five countries mentioned above). In addition, restrictions were eased in 2017 by Lebanon, Russia, the U.S., 28 EU Member States, Switzerland, Norway, Iceland, and Liechtenstein, and the number of regions and items subject to import restrictions are on the decline (as of the end of February 2018).

MOFA will continue persistent efforts, collaborating with relevant ministries and agencies, to urge countries and regions which maintain their import restrictions to remove restrictions as soon as possible, by such means as making requests at the leaders' and ministerial levels and through all routes, including bilaterally and through the WTO.