Chairman's Speeches & Messages

Chairman's Speeches

Japan Foreign Trade Council, Inc.
2015 New Year’s Reception Address by Chairman KOBAYASHI Eizo

January 7, 2015

On behalf of the Japan Foreign Trade Council (JFTC), I extend to all my warmest wishes for a very happy new year.

Before proceeding, I would like to express my special gratitude to Japanese State Minister of Economy, Trade and Industry Daishiro Yamagiwa, the ambassadors of numerous countries, JETRO Chairman Hiroyuki Ishige, and the other leaders of Japan’s political, government, and business circles present here today at the JFTC New Year’s Reception.

Thank you for joining us, and please allow me to take this opportunity to express my sincere appreciation for your continued understanding and support of the JFTC’s work.

It is a little over half a year since I took office as Chairman of the JFTC in May 2014.  These have been an eventful six months. June saw the announcement of the revised Japan Revitalization Strategy, which makes up the “third arrow” of Abenomics, and currently an array of initiatives are being implemented to revitalize the Japanese economy.

In foreign relations, our ties with many nations have become still closer, thanks in large part to Prime Minister Abe’s energetic schedule of overseas visits. In an area of particular interest to the JFTC, that of Economic Partnership Agreement (EPA) talks, we have seen an EPA concluded with Australia, together with steady progress in negotiating regional EPAs, such as the Trans-Pacific Partnership (TPP) and an EPA with the European Union.

In infrastructure exports, the Abe administration has set out the target of tripling the current level of project orders by 2020, for a total value of 30 trillion yen, through the concerted efforts of the government and private sector, spearheaded by personal lobbying at the prime ministerial level.

The second half of 2014 also saw major changes in the trade environment, most notably the steep depreciation of the yen and the sudden drop in crude oil prices.

Against that background, the general election called in December, following the dissolution of the House of Representatives, affirmed the electorate’s confidence in Abenomics, the core policies of the Abe administration.

As we embark on the new year amid these various developments, I anticipate that 2015 will be a major turning point for Japan in two ways.

First, I would like to urge the nation to make this the year that we engage decisively with our vision for Japan in 50 and 100 years’ time. I believe it is vital, in light of the debate that has been intensifying since last year on such issues as the declining birthrate and the aging population, to take swift action to implement concrete policies on the long-term issues that face the nation.

Many of the measures required to address these long-term issues correspond to points on the Revitalization Strategy agenda. The year 2015 will be pivotal in realizing this strategy, and I am resolved to ensure the success of these reforms through cooperation between the private sector and government.

The second point concerns my hopes for globalization. In the area of EPA talks, it is anticipated that 2015 and 2016 will bring progress and a successful conclusion to negotiations for a number of mega-Free Trade Agreements (FTAs) of vital importance to Japan, including the TPP, the Regional Comprehensive Economic Partnership (RCEP), the Japan-EU EPA, and the Japan-China-Korea FTA. Nothing can be taken for granted in matters that involve negotiations, but I am hopeful that we will see a speedy conclusion to these talks.

At the same time, if Japan is to maintain growth and continue to contribute to global prosperity in the future, as a nation that is said to be in the vanguard of facing challenges which other countries will eventually also face, we must pursue globalization internally as well as externally. I believe we need to be still more proactive in this direction by, for example, encouraging inward foreign direct investment and fully utilizing foreign talent.

I envision that we at the JFTC, with our combined expertise, will be able to further Japan’s “internal globalization” by offering policy recommendations in such areas as regulatory reform and the development of human resources equipped for the global arena.

Also, the JFTC has established a nonprofit organization, “Action for a Better International Community” (ABIC), whose core members are older employees retired from Shosha, or general trading companies. ABIC currently has over 2,500 registered members with extensive experience in international business, and they are involved in numerous service projects and social action programs that make use of their know-how, including cooperation with government agencies and local government organizations, and assisting and supporting small and medium-sized enterprises in their expansion overseas. We trust that these activities will help advance Japan’s globalization.

On reviewing the role of the Shosha in the era of globalization, I believe that it has become greater and more complex than ever before. In concrete terms, the Shosha play a vital role which is reflected in the JFTC’s tagline “Uniting the world through a shared vision”: that ofcreating a river flow in global value chains by making connections between upstream and downstream, suppliers and consumers in different parts of the globe. It is my hope that Shosha will create a shared vision among people all over the world not only by playing a part in physical foreign trade, but also by contributing to whole value chains.

In closing, we sincerely look forward to your continuing advice and support for the activities of the JFTC and ABIC during 2015, and earnestly hope that this will be a fruitful and prosperous year for all.

Thank you.