Press Conferences

Ms. KAMIKAWA Yoko, Minister for Foreign Affairs: Over these past two days, from July 16 to 17, the G7 Trade Ministers’ Meeting was held here in Villa San Giovanni, and we had lively discussions on challenges surrounding international trade. I emphasized particularly the following three points, aiming to further build on the outcomes of the previous meeting in Osaka-Sakai, which I hosted as chair last autumn.

The first point was that maintaining and strengthening a rules-based free and fair multilateral trading system, with the World Trade Organization (WTO) at its core, is essential for the stability and growth of the world economy, and that what is now required of the G7, which has responsibility for the world economy, is concrete actions. Specifically, it is important to address with urgency the three issues left unresolved at the Thirteenth WTO Ministerial Conference (MC13). The first issue is fisheries subsidies, the second, investment facilitation, and the third, e-commerce. In addition, I stressed the need to demonstrate with visible results that the WTO’s pillar for making new rules on matters such as trade and the environment is continuing to function, and obtained the other G7 members’ support.

Second, I emphasized the need to reconcile trade policy with challenges, such as climate change and the enhancement of inclusivity, for the sustainable development of the world economy. In particular, in terms of enhancing inclusivity in trade, I highlighted the importance of promoting women’s participation in trade. This is critical from the standpoint of both the SDGs’ principle of “Leave No One Behind” and Women, Peace and Security (WPS). I felt I was able to share my concerns with other members.

The third point was that over-dependence on a specific country that does not adhere to international rules and norms poses a significant economic security risk, and that it is important to address this by further strengthening collaboration with like-minded countries beyond the G7. In particular, in addressing non-market policies and practices that result in excess capacity, we need to counter the narrative that justifies excess capacity while restoring a level playing field. To tackle economic coercion, it is essential to enhance our capacity to counter, including the strengthening of supply chain resilience for critical minerals, and to establish a framework for supporting those affected. I highlighted these points and obtained other members’ support. We confirmed it is important that the discussion on economic security, which Japan led last year as the G7 Presidency, be continued by Italy, this year’s Presidency, and then by Canada, next year’s Presidency.

Amidst the multiple crises the international community is facing, it has become more important than ever for the G7, which shares common values and principles, to engage in candid discussions and identify a direction for the sustainable growth of the world economy. In line with this direction, it is essential to further collaborate with partners in the international community beyond the G7, including the Global South and companies, and we intend to take steps to this end.

Furthermore, on the margins of this meeting, I held meetings individually with Secretary of State for Business and Trade Reynolds of the UK, Executive Vice President of the European Commission Dombrovskis of the EU, and Minister of Export Promotion, International Trade and Economic Development Ng of Canada. We exchanged wide-ranging views on various common challenges in the area of trade. Additionally, I held informal talks with other attendees, including Vice-President of the Council of Ministers and Minister of Foreign Affairs and International Cooperation Tajani of Italy, the G7 Presidency, and WTO Director-General Okonjo-Iweala.

From this evening, I will be visiting three countries in the Western Balkans. As conflicts continue in Ukraine and other parts of the world, my visit to the Western Balkan region, which aspires to achieve peace and stability after experiencing cruel conflicts, is an extension of the consistent diplomatic efforts made by the Government of Japan for peace and stability of the international community, and offers a very important opportunity. I intend to make this a meaningful visit. That is all from me.

Reporter: Regarding excess capacity that you just mentioned, please tell us about what was discussed in the meeting and what Japan advocated for? In addition, while the G7 Summit Leaders’ Communiqué contained text that referred to China by name, I believe this time the Ministerial Statement does not. What is the intention behind this?

Minister Kamikawa: First, regarding the G7’s discussion on excess capacity, at the meeting, in discussing economic security, the G7 reaffirmed our shared view that market distortions and excess capacity resulting from non-market policies and practices not only undermine international economic order, but may also hinder emerging and developing countries’ sustainable growth. We then concurred on the importance of steadily implementing measures to assess the leaders’ commitment made at the G7 Apulia Summit to work together to address excess capacity, specifically, how non-market policies and practices are resulting in harmful excess capacity and other spillover effects. The measures include joint monitoring, exchanging information, consulting on respective responses, strengthening collaboration with emerging and developing countries, and enhancing diplomatic efforts with those contributing to overcapacity.

Regarding the text of the outcome documents, while the G7 Apulia Leaders’ Communiqué refers to China in the section on the situation in the Indo-Pacific, it does not refer to China in the section on economic security. Similarly, the Ministerial Statement does not refer to China in the part about enhancing economic resilience and economic security. It has been this way ever since the joint statement that was issued at last year’s Hiroshima Summit.

Reporter: I believe the Ministerial Statement notes that the G7 will continue conducting discussions to reform the WTO’s dispute settlement system by the end of this year. Please tell us once again about what discussion took place on the WTO and what Japan advocated for. Furthermore, the statement says by the end of this year, but less than half of the year remains. What are your thoughts on the feasibility of the efforts?

Minister Kamikawa: At the meeting, I emphasized that all WTO members need to reflect once more that a free and fair rules-based multilateral trading system, with the WTO at its core, forms the foundation of global stability and growth, and to support the WTO with a sense of urgency. In particular, I stressed that the WTO framework, including the dispute settlement system, is critical economic infrastructure that provides legal stability and predictability to business, and strongly urged that WTO reform be advanced with new ideas we have never seen before.

As a result, the G7 reaffirmed to continue our efforts to realize the reform of the dispute settlement system by the end of 2024, which was agreed upon at the MC13. The WTO consists of countries at different stages of development and with various trade structures, and the respective countries have varying positions. Accordingly, it is not easy to carry out WTO reforms with the agreement of 164 countries and regions. However, based on the principle of consensus, and to move the decision-making process forward, the G7 will take the lead in pooling our wisdom and promoting WTO reform to realize a more effective multilateral trading system.