Chapter 3
Diplomacy to Defend National Interests through Co-creation with the World
4 Support for overseas expansion of Japanese companies (including promotion of exports of Japanese agricultural, forestry, and fishery products and Japanese food products)
(1) Promotion of Japanese Companies' Overseas Business Expansion by MOFA and Accompanying Diplomatic Missions Overseas
The number of Japanese companies operating overseas has been increasing over the medium- to long-term despite being affected by domestic and overseas economic conditions and other circumstances. One of the reasons behind this is that many Japanese companies, which underpin Japan's economic development, have embarked more actively than ever before on overseas expansion with the aim of further cultivating foreign markets. There is considerable momentum behind economic growth abroad, mainly in Asia. To capture this for the Japanese economy, it is becoming increasingly important for the Government to support Japanese companies.
In light of the situation, MOFA, in coordination with diplomatic missions overseas, has been engaged 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 information while lobbying foreign governments under the leadership of ambassadors and consuls-general. Under the motto of being “open and responsive government offices,” these missions aim to provide specific support that corresponds with the conditions in that respective region.
In addition, seminars and legal consultations concerning local legal systems were held at 23 diplomatic missions in 16 countries in FY2023, mainly in Asia and Africa. In August 2022, the Global Business Investment Support Office was established in the Cabinet Secretariat to promote the planning of measures and coordination with related ministries and agencies to support overseas business investment by Japanese companies, and MOFA is actively contributing to these activities.
In addition to consultations about business problems, another important function performed by diplomatic missions overseas for Japanese companies is the promotion and publicity of the “Japan Brand” for products, technologies and services, as well as for agricultural, forestry and fishery products from Japanese companies at receptions to celebrate the Emperor's birthday and various other events and exhibitions. These missions have conducted a wide range of public relations activities by actively providing embassies and ambassador's residences as venues for product exhibitions of Japanese companies, product exhibitions and tasting events by local governments, and other events to promote and publicize Japanese products and commodities, and as venues for business development seminars and exchange events with local companies and related institutions.
(2) Promotion of the Japanese Infrastructure System in Overseas Business Expansion
To capture infrastructure demand, especially from emerging economies, and to promote overseas deployment of infrastructure systems by Japanese companies, the Ministerial Meeting on Strategy relating to Infrastructure Export and Economic Cooperation, chaired by the Chief Cabinet Secretary and comprising relevant cabinet ministers, was established in 2013, and 56 meetings were held by December 2023. This organization has been annually revising and following up on the “Infrastructure System Export Strategy” formulated in 2013, and in December 2020, in light of recent changes surrounding infrastructure systems, the “Infrastructure System Overseas Promotion Strategy 2025” (hereinafter referred to as the “New Strategy”) was released. The goal of the New Strategy is to achieve 34 trillion Japanese yen in orders for infrastructure systems in 2025 based on the three pillars: (1) achieve economic growth, (2) contribute to achieving the Sustainable Development Goals (SDGs), and (3) realize a “Free and Open Indo-Pacific (FOIP).” In June 2023, the Government of Japan formulated a supplement to the new strategy and, in light of changes in the environment surrounding overseas infrastructure development, laid out concrete initiatives for three priority strategies: (a) strengthening the response to digital transformation (DX) and other changes in a new age, (b) accelerating the transition toward a decarbonized society, and (c) promoting partnerships based on the FOIP. MOFA is promoting these efforts together with related ministries and agencies.
With regard to diplomatic missions overseas, MOFA has been appointing “Officers in Charge of Infrastructure Projects” to gather and consolidate information on infrastructure projects (approximately 200 personnel at 101 diplomatic missions overseas in 79 countries as of the end of December 2023). This initiative has also shown results.
(3) Promotion of the Export of Japanese Agricultural, Forestry and Fishery Products and Food (Removal of Import Restrictions on Japanese Food Products after the Great East Japan Earthquake)
Expanding exports of Japan's agricultural, forestry, fishery and food products is a major objective of the Government of Japan. The Strategy to Realize Export Expansion of Agricultural, Forestry, Fishery and Food Products was formulated in December 2022 to further promote concerted efforts by the Government of Japan. The strategy calls for developing exporting regions and business operators in order to achieve two trillion Japanese yen by 2025 and five trillion Japanese yen by 2030 of agricultural, forestry, fishery, and food product exports. As part of efforts to accelerate initiatives to further expand exports, the strategy was revised at the end of 2021, the year in which exports exceeded one trillion Japanese yen, as well as in June 2022 and December 2022. MOFA is also working with related ministries and agencies, Japanese companies, and local governments to expand exports. In particular, Japanese business support officers (in charge of the food industry) have been assigned to 61 diplomatic missions in 56 countries and regions to strengthen initiatives to promote the export of agricultural, forestry, and fishery products and food. In addition, MOFA is actively promoting the attractiveness of Japanese agricultural, forestry, and fishery products and food products through its network of diplomatic missions overseas and by utilizing social media and other means, as well as by seizing various opportunities such as receptions and cultural events to which dignitaries from various countries and regions are invited. As one measure to strengthen the functions of its diplomatic missions overseas, since 2022 MOFA has been assigning advisors familiar with local conditions to missions in countries and regions with large export value to promote the export of agricultural, forestry, and fishery products, as well as food products. In addition, Japan Food Export Platforms, consisting of diplomatic missions overseas, the Japan External Trade Organization (JETRO) overseas offices, and other organizations, make use of their local presence to provide useful local information to domestic businesses, product groups, and prefectures, and serve as a hub connecting these parties and overseas businesses, as well as an organization that plans various promotional activities by a concerted national effort.
One of the biggest barriers to increasing exports is import restrictions on Japanese agricultural, forestry and fishery products and food by countries and regions following the Great East Japan Earthquake and TEPCO's Fukushima Daiichi Nuclear Power Station accident. Completely eliminating these restrictions and addressing Japan's reputational damage are top priorities for the Government of Japan, MOFA has been making efforts in collaboration with relevant ministries and agencies to have these restrictions lifted as quickly as possible. As a result of these efforts, the EU, Norway, Iceland, Switzerland and Liechtenstein lifted their import restrictions in August, bringing the total to 48 countries and regions.
Meanwhile, as of the end of 2023, seven countries and regions still maintain regulations, especially China, Hong Kong, Macau, and Russia, which tightened their measures following the release of ALPS treated water in August (See Chapter 3, Section 1, 4 (3) C) (regulations including import suspension: the ROK, China, Taiwan, Hong Kong, Macau, Russia; limited regulations: French Polynesia). At the WTO, Japan has consistently and strongly urged China and other countries and regions to immediately repeal their measures, and has requested discussions with those countries and regions based on the SPS Agreement,13 while explaining its position at meetings with the relevant WTO committees. Furthermore, in accordance with the provisions of the RCEP Agreement to which both Japan and China are Parties, Japan has requested discussions with the Chinese government and has asked China to engage in the discussions in accordance with its obligations under the Agreement. MOFA will closely work with the relevant ministries, agencies, local governments and international organizations and will continue taking every opportunity and making every effort to persistently explain and appeal to these countries and regions, with the goal of having restrictions promptly removed and reputational damage repaired based on scientific evidence.
13 SPS Agreement: Agreement on the Application of Sanitary and Phytosanitary Measures