Section 3 Economic Diplomacy

1 Overview of Economic Diplomacy

The global economy continues to be robust and the overall resilience of emerging markets has been strengthened, but on the other hand, major risks, such as financial weakness and geopolitical concerns, are partially manifested in some emerging economies. Under such circumstances, in order to dispel market unrest and develop a free and fair economic order, it is necessary to continue monitoring market trends and support strong, sustainable, balanced, and inclusive growth. Japan will contribute to this as a member of the G7 and the G20, and as the world's second largest developed economy.

Japan's prosperity is based on maintaining and strengthening the free and open international economic system, which also leads to the stability and growth of the global economy. With this in mind, Japan has promoted the Japan-EU Economic Partnership Agreement (EPA), the Trans-Pacific Partnership Agreement (TPP12), and the Regional Comprehensive Economic Partnership (RCEP). As a result, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP11) entered into force on December 30, and the Japan-EU EPA also entered into force on February 1, 2019. We can say that 2018 is a year in which Japan's efforts thus far have gradually come to fruition. We will steadily implement these agreements and proceed with negotiations on the conclusion of a comprehensive, balanced, and high-quality agreement on RCEP and other agreements.

Japan has advanced initiatives with the aim of further accelerating the promotion of economic diplomacy as one of the priority areas of Japan's diplomacy, centered around the following three aspects: (1) rule-making to bolster free and open global economic systems by promoting the various economic agreements as described above; (2) supporting the overseas business expansion of Japanese companies through promotion of public-private partnerships; and (3) promoting resources diplomacy along with inward investment toward Japan.