2 Efforts to expand the free and fair economic order

(1) Promotion of Economic Partnerships

In recent years, despite the advancement of economic globalism, there have been clear developments toward protectionism as COVID-19 infections spread, and furthermore, the global economy as a whole is in turmoil due to Russia's aggression against Ukraine. In such circumstances, Japan has emphasized and steadily promoted Economic Partnership Agreements (EPAs) and Free Trade Agreements (FTAs), which help capture the vitality of the growing market overseas and strengthen the basis of the Japanese economy through measures such as the reduction or elimination of tariffs on goods as well as barriers on trade in services, and through rule-making for trade and investment. In March 2023, the CPTPP members and the UK confirmed the substantial conclusion of the negotiations for the accession of the UK to the CPTPP, followed by the signing of the Protocol on the accession of the UK to the CPTPP in July. Also in the same month, Japan and the GCC (Gulf Cooperation Council)² concurred on resuming negotiations for Japan-GCC Free Trade Agreement (FTA) from 2024, which have been suspended since 2009.

This brought the EPA/FTA ratio in Japan's trade (the ratio of trade value with countries that have EPAs/FTAs already signed or entered into force with Japan, to Japan's total trade value) to around 78. 8 % (source: Trade Statistics, Ministry of Finance, 2024).

Furthermore, in January the Protocol Amending the Trade Agreement between Japan and the United States of America, which modifies the conditions for the application of agricultural safeguards on U.S. beef, entered into force.

Japan will continue working actively to maintain the high standards of the CPTPP, ensure the transparent implementation of the Regional Comprehensive Economic Partnership (RCEP) Agreements, and negotiate other economic partnership agreements in order to expand the free and fair economic order that is the basis for its own peace and prosperity.

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• 2 Gulf Cooperation Council (GCC): established by Saudi Arabia, the UAE, Bahrain, Oman, Qatar, and Kuwait. Its purpose is to coordinate and integrate cooperation among participating countries in all areas, including defense and economics.

A Multilateral Agreements, etc.

(A) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The CPTPP is an agreement that promotes efforts to establish new economic integration rules for the 21st century in a wide range of areas such as tariffs, services, investments, E-commerce, intellectual property, and state-owned enterprises. It also provides opportunities for Japanese companies to better thrive in overseas markets, giving it important economic significance as a major driving force for the country's economic growth. Furthermore, the CPTPP has great strategic significance in that it will establish a free and fair economic order with countries sharing fundamental values and principles, including freedom, democracy, fundamental human rights and the rule of law, and contribute significantly to the security of Japan and stability in the Indo-Pacific region, ensuring regional and global peace and prosperity.

The 12 countries of Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S., and Viet Nam signed the Trans-Pacific Partnership Agreement (TPP Agreement) in February 2016. However, due to the U.S.' announcement of its withdrawal from the TPP Agreement in January 2017, Japan proactively led discussions among the 11 countries for the early realization of the TPP. Agreement in principle was reached at the TPP Ministerial Meeting in November 2017, and the CPTPP was signed in Chile in March 2018. Six countries required for the entry into force of the agreement (Mexico, Japan, Singapore, New Zealand, Canada, and Australia) completed their domestic procedures and the agreement entered into force on December 30, 2018. The agreement entered into force for all 11 countries that signed it, with Viet Nam becoming a party in January 2019, Peru in September 2021, Malaysia in November 2022, Chile in February 2023, and Brunei in July.

Since the CPTPP entered into force, seven CPTPP Commission meetings have been held mostly at the ministerial level. At the fourth meeting of the TPP Commission, held in June 2021, it was decided to start the process of the UK's request to join in February of that year and to establish an accession working group (AWG) for the UK membership, and the working group started meeting in September of that year. In March 2023, the CPTPP members and the UK held a ministerial meeting in an online format to confirm the substantial conclusion of the negotiations for the accession of the UK to the CPTPP. In July, the meeting of the 7th CPTPP Commission was held in New Zealand, where the Protocol on the accession of the UK to the CPTPP was signed. Based on the results of the negotiations, the Protocol sets out, among other things, the UK's compliance with the rules in each of the areas stipulated in the CPTPP and the market access commitments that the CPTPP Parties and the UK grant to each other. After signing the Protocol, Japan worked vigorously to complete its domestic procedures, and the Protocol was approved in December in the 212th extraordinary session of the Diet. In addition, a CPTPP Ministerial Meeting was held in the U.S. in November where discussions were held on how to deal with the accession requests and on future actions related to the “General Review” of the agreement. China requested to join on September 16, 2021; Taiwan on September 22, 2021; Ecuador on December 17, 2021; Costa Rica on August 10, 2022; Uruguay on December 1, 2022; and Ukraine in May 2023. Japan will take a firm stand on whether the economies that have requested membership are fully capable of meeting the high standards of the CPTPP and have the intention and ability to continue to do so in their post-accession implementation, while also taking into account strategic perspectives and the understanding of the public.

(B) Indo-Pacific Economic Framework for Prosperity (IPEF)

The IPEF is a framework for discussing economic cooperation in the Indo-Pacific region and includes 14 countries: Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, the Republic of Korea (ROK), Singapore, Thailand, the U.S., and Viet Nam. The launch was announced in Tokyo in May 2022 to coincide with U.S. President Joseph Biden's visit to Japan, and the four pillars of Trade, Supply Chains, Clean Economy, and Fair Economy were agreed upon for subjects of negotiations at the IPEF Ministerial in Los Angeles in September of the same year. In May 2023, the substantial conclusion of the IPEF Supply Chain Agreement (Pillar 2) was announced at the IPEF Ministerial in Detroit.

In addition, an IPEF Leaders' Meeting and IPEF Ministerial were held in San Francisco in November. The San Francisco meeting saw the signing ceremony for the IPEF Supply Chain Agreement, as well as the announcement of the substantial conclusion of the negotiations of the IPEF Clean Economy Agreement (Pillar 3), the IPEF Fair Economy Agreement (Pillar 4), and the IPEF Agreement dealing with cross-cutting matters across each agreement under the IPEF. In addition to these achievements, a Leaders' Statement was issued announcing the launch of the IPEF Critical Minerals Dialogue, the ministerial IPEF Council to be held annually from 2024 onward, and a biennial leaders' meeting.

Japan values the IPEF from the strategic perspective of U.S. engagement in the economic order in the Indo-Pacific region and will continue to work closely with regional partner countries, together with the U.S., toward building economic order and ensuring prosperity in the region to achieve sustainable and inclusive economic growth in the Indo-Pacific region.

(C) Japan-EU Economic Partnership Agreement (Japan-EU EPA)

In February 2019, the Japan-EU EPA, which at the time accounted for about 30% of global GDP and 40% of global trade, entered into force. The EU is an important partner for Japan, being its third largest export partner (9.5% of total exports) and fourth largest import partner (9.6%) (both as of 2022).

In April 2023, the fourth meeting of the Joint Committee was held among ministers to discuss how to ensure the appropriate and effective operation of the Japan-EU EPA and to exchange views on progress made in the areas of Geographical Indications (GI), regulatory cooperation, government procurement, and trade and sustainable development. In October, the ministers also held the EU-Japan High-Level Economic Dialogue and confirmed that negotiations on the inclusion of a “provisions on the free flow of data” into the Japan-EU EPA had reached an agreement in principle. The Government of Japan will continue to closely cooperate on further deepening the Japan-EU economic relationship by promoting efforts to ensure effective implementation of the EPA through minister-level meetings of the Joint Committee and specialized committees and working groups.

(D) Japan-UK Comprehensive Economic Partnership Agreement (Japan-UK CEPA)

The Japan-UK EPA, which entered into force in January 2021 after the UK left the EU, is an important cornerstone for further deepening economic relations between Japan and the UK as global strategic partners who share fundamental values. The Japan-UK EPA, based on the Japan-EU EPA and comprising 24 chapters in total, stipulates rules that are more advanced and high-level than those of the Japan-EU EPA in such areas as electronic commerce and financial services. It is also Japan's first EPA to include a chapter on Japan-UK cooperation to promote women's access to the opportunities and benefits created by trade.

In October, the second meeting of the Japan-UK EPA Joint Committee was held among ministers, who reviewed the implementation of the EPA and confirmed further strengthening and promoting cooperation with regard to the economy. The Government of Japan will continue to promote efforts to ensure effective implementation of the EPA through minister-level meetings of the Joint Committee and specialized committees and working groups, and will continue to cooperate closely to further deepen economic relations between Japan and the UK.

(E) Japan-GCC Free Trade Agreement (FTA)

FTA negotiations between Japan and the Gulf Cooperation Council (GCC) began in 2006 and were subsequently suspended in 2009. In July 2023, Prime Minister Kishida visited Saudi Arabia, where he and GCC Secretary General Jasem Al Budaiwi concurred on resuming Japan-GCC Free Trade Agreement negotiations from2024.

(F) Regional Comprehensive Economic Partnership (RCEP) Agreement

The RCEP is an economic partnership agreement involving the members of the Association of Southeast Asian Nations (ASEAN), Japan, Australia, China, the ROK, and New Zealand. RCEP participating countries account for roughly 30% of the world's total GDP, total trade, and population. The entry into force of the Agreement is expected to further strengthen Japan's ties with the regions serving as the world's growth center, thus contributing to the economic growth of Japan. Following a ceremony to launch RCEP negotiations during the ASEAN-related summit meeting held in Phnom Penh, Cambodia in November 2012, there were eight years of negotiations that included four summit meetings, 19 ministerial meetings, and 31 rounds of negotiations. The Agreement was signed on the occasion of the fourth RCEP Summit on November 15, 2020.

The RCEP Agreement entered into force on January 1, 2022, and a total of five Joint Committee meetings and two Ministers' Meetings were held by the end of 2023. Japan, for its part, will work in close cooperation with the countries concerned to ensure that economic activities based on free and fair rules take root in the region by ensuring the transparent implementation of the RCEP Agreement.

Although India had participated from the start of negotiations, at the third Summit in November 2019, India declared that it would not participate in further negotiations and did not sign the RCEP Agreement.

However, at the signing, Signatory States issued a “Ministers' Declaration on India's Participation in the RCEP” based on a proposal from Japan. The declaration clarified that the Agreement would be open for India, and stipulated a facilitation of India's future accession and allowed it to participate in related meetings as an observer. Due to the significant economic and strategic importance of India's participation in the RCEP, Japan will continue to play a leading role for the future participation of India to the RCEP Agreement.

(G) Free Trade Area of the Asia-Pacific (FTAAP) Concept

APEC Putrajaya Vision 2040 (adopted at the 2020 Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting), which sets the medium- to long-term direction for the Asia-Pacific region, states an objective to “further advance the Bogor Goals³ and economic integration in the region in a manner that is market-driven, including through the work on the Free Trade Area of the Asia-Pacific (FTAAP) agenda which contributes to high standard and comprehensive regional undertakings.” In 2022, an FTAAP Agenda Work Plan was agreed upon, and work is underway to materialize this vision.

Japan has been continuously working to share knowledge and support capacity building for the FTAAP agenda by holding policy dialogues on the “competition chapters” in FTAs and EPAs as well as on investment policies. The entering into force of the CPTPP Agreement at the end of December 2018 and the RCEP Agreement in January 2022 also have significance from the perspective of achieving a high-quality and comprehensive FTAAP.

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• 3 Bogor Goals: “Developed economies will achieve the goal of free and open trade and investment by 2010 and developing economies by 2020,” as decided at the APEC Summit in 1994.

B Bilateral Agreements

Japan-Türkiye EPA

As an important country that serves as a hub among Europe, the Middle East, the Central Asia and Caucasus region, and Africa, Türkiye has considerable economic potential and is attracting attention as a production base for exports to surrounding regions. Türkiye has signed FTAs with over 20 countries and regions, and the need has been recognized for Japan to develop conditions of competition for Japanese companies through the conclusion of an EPA.

In addition, since the business communities of both countries have expressed high expectations for the early conclusion of the Japan-Türkiye EPA, the two countries agreed to start negotiations at the Japan-Türkiye Summit Meeting in January 2014, and 17 rounds of negotiations were held by the end of December 2023.

C Other EPAs that have Entered into Force

The existing EPAs contain provisions concerning the joint committee, which is a body that discusses the implementation of the agreements, and a process to review the agreements after a certain period of time following their entry into force. In addition, a variety of consultations are being held in order to smoothly implement the EPAs after their entry into force. With regard to the Japan-Indonesia EPA, substantial conclusion of negotiations for the amendment of the EPA was confirmed at the Japan-Indonesia Summit Meeting held in December.

In accordance with the EPAs, the Government of Japan has been accepting candidates for nurses and certified care workers from Indonesia, the Philippines, and Viet Nam. In total, 3,949 (as of FY2023) candidates have been accepted from Indonesia, 3,613 from the Philippines, and 1,845 from Viet Nam. From these three countries, the total number of nurses and certified care workers who have passed national exams is 648 and 2,890 individuals, respectively, as of FY2022.

D Investment-related Treaties

Investment-related treaties (Investment agreement and EPA/FTA including investment chapter) constitute an important legal basis to improve predictability for investors and promote investment by establishing common rules for the protection of investors and their investment property, enhancement of transparency in regulations, expansion of investment opportunities, procedures for investment dispute settlement, and other matters. Japan has actively engaged in concluding investment agreements, as these agreements are considered to improve the investment environment for Japanese companies overseas and to attract foreign investment to the Japanese market.

In 2023, the Japan-Angola Investment Agreement was signed in August and the Japan-Bahrain Investment Agreement came into effect in September. As of the end of January 2024, 53 investment-related agreements have entered into force (36 investment agreements and 17 EPAs), and three investment-related agreements have been signed but have not yet entered into force (two investment agreements and one EPA). Altogether, there will be 56 investment-related agreements covering 81 countries and regions. Including investment-related agreements that are currently under negotiation, these investment-related agreements will cover 94 countries/regions and approximately 95% of Japan's outbound direct foreign investment.⁴

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• 4 “Regional balance of Direct Investment (Assets),” Ministry of Finance (All regions) (As of the end of 2022)

E Tax Conventions/Agreements on Social Security

(A) Tax Conventions

Tax conventions are intended to eliminate international double taxation in cross-border economic activities (e.g. to reduce or exempt withholding taxes imposed on investment income such as dividends), or to prevent tax evasion or avoidance, and provide an important legal basis for promoting sound investment and economic exchange between two countries. To support the sound overseas business expansion of Japanese companies, the Government of Japan is working to expand the necessary tax treaty networks, both in terms of quality and quantity.

In 2023, a new tax treaty with Azerbaijan (fully revised) (August) entered into force. Tax treaties with Algeria (February) and Greece (November) were also signed. In addition, Japan and Turkmenistan agreed in principle on a new tax treaty (fully revised) in October. As of December 2023, Japan has concluded 85 tax treaties applied to 154 economies.

(B) Agreements on Social Security

Agreements on social security aim to resolve the issues of the double payment of social security insurance premiums and pension entitlement. They are expected to facilitate interpersonal exchange and strengthen further bilateral relations, including economic exchange, by reducing the burden on Japanese companies and citizens working overseas. The total number of countries that have concluded or signed such agreements with Japan now stands at 23 as of December 2023.

(2) Initiatives with International Organizations

A World Trade Organization (WTO)

(A) Challenges Facing the WTO and WTO Reform

The WTO has contributed to the economic growth of Japan and the world as the foundation of a rules-based, free and open multilateral trading system.Today, the world faces geopolitical challenges such as Russia's aggression against Ukraine, as well as changes in the global economy such as the development of the digital economy and new challenges such as non-market policies and practices and economic coercion. It is true that the WTO has not been able to adequately address these crises and challenges, and the need for WTO reform has never been more apparent if the multilateral trading system, with the WTO as its core, is to be maintained and strengthened.

Against this backdrop, Japan is promoting international efforts to reform the WTO, which consist of the three pillars: (1) formulating rules in line with the times, (2) reforming the dispute settlement system, and (3) strengthening the function for monitoring and implementation of the WTO Agreements. The G7 Trade Ministers' Meeting in Osaka-Sakai, held in October under Japan's presidency, also reaffirmed the G7's commitment to promote WTO reform and maintain and strengthen a rules-based, inclusive, free and fair multilateral trading system with the WTO at its core.

(B) Formulation of rules in line with the times

Japan accepted the Agreement on Fisheries Subsidies in July 2023, which was adopted during the 12th WTO Ministerial Conference in June 2022. The agreement aims to ensure the sustainable use of living marine resources by prohibiting subsidies that facilitate illegal, unreported, and unregulated (IUU) fishing, etc. This is the second new agreement created with the participation of all member countries since the establishment of the WTO in 1995, following the Trade Facilitation Agreement. In February, along with urging non-member countries to accede to the agreement as soon as possible, Japan was the first among the member countries to contribute to the agreement's funding in order to promote its implementation by developing countries.

Meanwhile, Japan has been promoting rule-making through groups of like-minded countries under the Joint Statement Initiatives (JSIs).⁵ In 2020, negotiations were launched for the preparation of an Agreement on Investment Facilitation for Development. Japan also actively contributed to the discussions, and negotiations on the text of the substantive provisions were concluded in July. The substantive provisions provide for increased transparency of investment-related measures and simplified and expedited licensing procedures. In the JSI negotiation to develop a new agreement on e-commerce, Japan, as a co-convenor along with Australia and Singapore, has been leading discussions toward the conclusion of the negotiations.

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• 5 JSI: Joint Statement Initiative. Initiative launched at the 11th WTO Ministerial Conference (Argentina) in December 2018 based on a Joint Statement issued by a number of like-minded countries in each of the following four areas: (1) e-commerce, (2) investment facilitation, (3) micro, small, and medium-sized enterprises (MSMEs), and (4) services domestic regulation

(C) Dispute Settlement

The WTO dispute settlement system is aimed at seeking a rules-based settlement of economic disputes arising between WTO Members, whereby providing security and predictability to the multilateral trading system. Since December 2019, the Appellate Body (serving as the final instance) has “ceased to function” due to a failure to (re)appoint its members, falling short of the quorum required to hear an appeal, but the dispute settlement system itself continues to be used by WTO Members.

As of December 31, 2023, five cases⁶ to which Japan was one of the parties had been brought to the WTO's dispute settlement mechanism, with the following developments in 2023.

In the case Japan filed in 2019 regarding India's measures to increase tariffs on information and communication technology (ICT) products such as smartphones and parts thereof, a report of the panel (serving as the first instance) was circulated to all WTO Members in April. It concluded that the measures in question were inconsistent with Articles II:1(a) and (b) of the GATT 1994, recommending India to bring the measures into conformity with its obligations under those provisions. As India appealed the panel report to the Appellate Body in May, which has been dysfunctional, no deliberations are currently taking place.

In the case of Japan's complaint filed in 2021 against China's anti-dumping measures on Japanese stainless steel products, a panel report was circulated to all WTO Members in June. It concluded that the measures in question were inconsistent with the Anti-Dumping Agreement, recommending China to bring the measures into conformity with its obligations under that agreement. The panel report was adopted by the WTO Dispute Settlement Body (DSB) in July. In October, Japan and China also notified the DSB that they had agreed that the reasonable period of time for China to implement the DSB's recommendation should expire on 8 May 2024.

In the case the ROK filed in 2019 regarding Japan's review⁷ of its export control operations for the ROK, the ROK withdrew its complaint in March.

In response to the difficulty in obtaining final decisions on individual disputes due to the suspension of the functions of the Appellate Body, in March Japan joined the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), which was launched by like-minded WTO Members in 2020 as an interim mechanism to substitute the functions of the Appellate Body. The MPIA will enhance the predictability of the WTO dispute settlement system by allowing for a final decision on disputes among participating members and thereby contribute to the maintenance and strengthening of the rules-based multilateral trading system.⁸

Meanwhile, Japan has been actively participating in discussions on reforming the dispute settlement system in order to achieve reforms that will contribute to a long-lasting solution to the problems faced by the Appellate Body, and has continued to lead efforts toward reform in cooperation with other members since joining the MPIA.

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• 6 In addition to the respective cases with India and China mentioned in the main text, there are cases related to safeguard measures on steel products by India, anti-dumping measures on stainless steel bars by the ROK, and support measures by the ROK for its shipbuilding industry.
• 7 With regard to the export of fluorinated polyimides, resists, and hydrogen fluoride to the ROK and the transfer of associated manufacturing technologies (including those associated with the export of manufacturing equipment), the decision was made to have them removed from the comprehensive export license system and switch to a system requiring individual export license applications
• 8 MPIA participants make a political commitment to not petition the Appellate Body for WTO-related disputes between participating countries and instead engage under the WTO Agreements (52 participating countries and regions as of the end of December 2023).

(D) Toward the 13th WTO Ministerial Conference (MC13)

With the goal of achieving concrete results at MC13 in February 2024, in addition to efforts at the WTO, Japan took advantage of opportunities such as the G7 Trade Ministers' Meetings in Osaka-Sakai in April and October, the G20 Trade and Investment Minister's Meeting in August, and the APEC Ministerial Meeting in November to lead discussions at MC13 and call for close cooperation among countries.

B Organisation for Economic Co-operation and Development (OECD)

(A) Features

The OECD is an international organization with 38 member countries with shared values for the purpose of economic growth, development assistance, and the expansion of free, multilateral trade. The OECD conducts research and analysis on a wide range of economic and social areas and makes specific policy recommendations.

Through discussions held by approximately 30 committees, it has formed international standards and rules. Since its accession to the OECD in 1964, Japan has been actively engaged in OECD initiatives through discussions at various committees as well as financial and human resources contributions.

(B) 2023 OECD Ministerial Council Meeting

The 2023 Ministerial Council Meeting was held on June 7 and 8 in Paris, France, under the chairmanship of the UK and the vice-chairmanships of Costa Rica and New Zealand, with the theme “Securing a Resilient Future: Shared Values and Global Partnerships.” Among those attending in person from Japan were State Minister for Foreign Affairs YAMADA Kenji and State Minister of Economy, Trade and Industry NAKATANI Shinichi. State Minister Yamada outlined the discussions at the G7 Hiroshima Summit in May, demonstrated the unwavering solidarity between the G7 and Ukraine, and stated Japan's determination to strongly support Ukraine's recovery and reconstruction with full backing of the Japanese public and private sectors. State Minister Yamada also stated Japan's position and efforts regarding the OECD's outreach to Southeast Asia and building resilient supply chains, and stressed the importance of disseminating and promoting the OECD Guidelines for Multinational Enterprises, which is now more fit for purpose in light of up-to-date issues such as the environment, digitalization, and human rights.

During the closing session, a Ministerial Council Statement was adopted based on each country's position and views on various issues, including support for Ukraine, outreach to Southeast Asia, climate change, and digitalization. The outcome documents such as the OECD Strategic Framework for the Indo-Pacific and the updated OECD Guidelines for Multinational Enterprises were adopted.

At the end of the meeting, State Minister Yamada announced Japan's intention for assuming the chairmanship of the OECD Ministerial Council in 2024, marking the 60th anniversary of Japan's OECD membership.

(C) Initiatives in Various Sectors

The OECD plays an important role in shaping rules and standards in the economic and social spheres, as well as in promoting these rules and standards in emerging economies through deepening cooperation with other international fora such as the G20, G7, and APEC. Its initiatives include leading discussions on reviewing the international taxation system, revising principles on AI and corporate governance, disseminating and implementing the G20 Principles for Quality Infrastructure Investment,⁹ and engaging in aid coordination.

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• 9 Endorsed at the G20 Osaka Summit in June 2019, the Principles for Quality Infrastructure Investment include elements such as openness, transparency, economic efficiency, and debt sustainability

(D) Outreach to Southeast Asia

With the growing significance of the Indo-Pacific region in the global economy, it is an important task for the OECD to strengthen relations with Indonesia and other emerging economies in Southeast Asia and to promote the OECD standards. In this context, the OECD has been working to strengthen relations with the region, engaging in policy dialogues and other activities through the Southeast Asia Regional Programme (SEARP), and in July, Indonesia became the first Southeast Asian country to announce its intention to join the OECD. In October, State Minister for Foreign Affairs TSUJI Kiyoto attended the OECD Southeast Asia Ministerial Forum in Hanoi (Viet Nam) in person. State Minister Tsuji stated that the OECD's outreach to Southeast Asia is aimed at maintaining and strengthening a free and open economic order based on the rule of law, and Japan shares this philosophy. State Minister Tsuji also stated that the ASEAN Outlook on the Indo-Pacific (AOIP) emphasizes the principles of openness, transparency, inclusivity, and respect for international law, and the promotion of the AOIP and OECD international standards will attract private investment to the ASEAN region, leading to sustainable economic growth.

Japan will continue to encourage future OECD membership from the Southeast Asian region, utilizing the OECD Tokyo Centre and the technical cooperation of Japan International Cooperation Agency (JICA).

(E) Contributions in Terms of Financial and Human Resources

As of 2023, Japan was the second largest financial contributor to the OECD, covering 9.0 % of the OECD's mandatory contributions (the U.S. is first, covering 19.1 %). Moreover, Japanese nationals have successfully served as one of the Deputy Secretary Generals (there are four positions in total; currently Deputy Secretary General TAKEUCHI Yoshiki), and 85 Japanese staff work at the OECD Secretariat as of the end of 2022.

(3) Intellectual Property Protection

Strengthening the protection of intellectual property is crucial to promoting technological innovation and achieving economic growth. Japan is contributing to the strengthening of international collaboration through multilateral discussions at APEC, the WTO (TRIPS),¹⁰ and the World Intellectual Property Organization (WIPO). In addition, Japan is working to improve an environment for ensuring that the Japanese intellectual property is appropriately protected and utilized both domestically and internationally through means such as establishing provisions for the protection and promotion of the use of intellectual property in economic partnership agreements that include the CPTPP, RCEP Agreement, Japan-EU EPA, and Japan-UK EPA.

At the same time, in order to provide prompt and effective support to Japanese companies facing increasingly serious intellectual property issues such as counterfeit and pirated products, Ministry of Foreign Affairs (MOFA) has appointed Intellectual Property Officers at almost all diplomatic establishments overseas to serve as liaisons for Japanese companies, collect local information, consider countermeasures, and liaise with counterpart governments and other relevant parties. In addition, meetings are held for these officers to exchange information on the extent of the damage in each region and country, and to share the response status and knowledge of diplomatic establishments overseas to strengthen the system for handling intellectual property right infringements. In 2023, such meeting was held for the Southwest Asia region.

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• 10 TRIPS Agreement: Agreement on Trade-Related Aspects of Intellectual Property Rights