Chapter 4
Japan Strengthening Its Presence in the International Community
2 New Rule-Making
In light of the need for new rule-making that meets the challenges of a changing world and emerging needs, Japan will lead necessary international efforts to create new rules.
As protectionism and inward-looking trends spread worldwide, Japan has demonstrated its leadership as a flagbearer of free trade. Following the U.S. announcement in January 2017 to withdraw from the Trans-Pacific Partnership, Japan led discussions with 10 other participating countries to realize the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP11, entered into force in December 2018). Japan also concluded the Japan-EU EPA with the EU (entry into force in February 2019), and brought the Japan-U.S. Trade Agreement and the Japan-U.S. Digital Trade Agreement into force in January 2020. In November 2020, following eight years of negotiations that began in 2012, the Regional Comprehensive Economic Partnership (RCEP) Agreement was signed among 15 countries, including Japan. Furthermore, the Japan-UK Comprehensive Economic Partnership Agreement (CEPA), a new framework for trade and investment between Japan and the UK to replace the Japan-EU EPA between Japan and the UK, entered into force in January 2021 following the UK's withdrawal from the EU. With the signing and the conclusion of the TPP11 Agreement, the Japan-EU EPA, the Japan-U.S. Trade Agreement, the Japan-UK CEPA and the RCEP Agreement, a network of free and fair economic zones that cover approximately 80% of the global GDP is now formed, with Japan at its center.
In the digital field, which is becoming increasingly important in the post-COVID-19 era, Japan is playing a leading role in developing global rules on digital trade such as the Japan-U.S. Digital Trade Agreement (entry into force in January 2020). In addition, at the G20 Osaka Summit, held in June 2019 and chaired by Japan, Japan shared its Data Free Flow with Trust (DFFT) concept and launched the Osaka Track. In particular, on occasions such as the WTO e-commerce negotiations, where Japan serves as a co-convenor, Japan leads international rule-making efforts concerning the digital economy, particularly with respect to e-commerce and the data flow.
Japan has focused on building international rules in new areas including new domains such as cyberspace and outer space as well as maintaining national security in our economy and technology, which has broadened its scope due to technological innovations. This effort is based on the understanding that existing international law applies to these new areas.