Chairman Nakamura’s Comments on the G20 summit in Osaka

June 29, 2019

The G20 summit in Osaka has come to a successful conclusion. This was the first time Japan has ever hosted the G20 summit, and we would like to pay our respect to all of those who worked so hard to make the event a success, including Japanese government officials who compiled the Leader’s Declaration, and everyone in charge of safety and security.

The issue of trade friction was our biggest point of concern, and I believe that the stipulation in the Leaders’ Declaration that ”We strive to realize a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open” is an important achievement that will keep trade friction from intensifying and facilitate negotiations geared toward easing friction between member countries. The US-China top-level trade talks on the sidelines of the G20 summit also produced an agreement to resume trade negotiations, and the US announced that it would not raise tariffs for the time being. This is a very welcome development that is along the intentions of the aforementioned Leaders’ Declaration.

In addition, the JFTC is focusing its attention on important agreements reached at the G20 Summit in Osaka on the following three points pertaining to trade and investment. We look forward to the ongoing efforts of those involved, and initiative on the part of the Japanese government in particular, to quickly turn these into concrete rules.

(1)International rules for the cross-border flow of data

Understanding was reached on the necessity and urgency of creating international rules for the cross-border flow of data, and it was declared that the “Osaka Track” framework for multi-lateral discussions would be established. The creation of international rules to ensure the free data flow with trust is of particularly high priority, and is indeed essential to maintain and develop free, fair trade.

(2)WTO reform

As globalization and digitalization become even more advanced, it is prerequisite that the WTO sufficiently serves its functions to maintain and develop free trade. It is imperative to reform the WTO which is not necessarily fulfilling its function in the dispute settlement system, and with the agreement reached including the US to work toward reforming the WTO, we look forward to these reforms gaining even more momentum.

(3)Infrastructure investment and debt problems

Infrastructure is a driver of economic growth and prosperity. However, it requires large investments, so the sustainability and transparency of debt are critically important to the sustainable growth of the global economy and developing countries in particular. Quality infrastructure and development is also a strategic field for public-private cooperation in Japan to contribute to economic development in the world, so it is highly significant that agreement has been reached on the importance of this point.