2021 New Year’s Remarks by Chairman KOBAYASHI Ken
January 4, 2021
Happy New Year everyone.
The year 2020 was an unprecedented one, with the COVID-19 pandemic delivering a huge economic and social blow to the world. Countries have taken various measures to prevent the spread, including lockdowns and stay-at-home orders, yet the virus has been relentless. Here in Japan, it forced us to postpone the Tokyo Olympic and Paralympic Games. Against this backdrop, the Japanese government has mobilized all available resources to contain the spread of the virus, whilst continuing social and economic activities. Despite these efforts, our economy has suffered its sharpest contraction in decades due to national restrictions on the cross-border flow of goods and people. The pandemic meanwhile has shed new light on problems that have long plagued our country, including a large-scale rural-urban migration, supply chain vulnerability, and the digital transformation challenges.
Amidst the chaos of 2020, the Suga administration was inaugurated in September last year, and declared that it would work with a sense of speed on various measures, including the establishment of a digital agency, and its aim to achieve carbon neutrality by 2050. In terms of trade, the Japan-UK Comprehensive Economic Partnership Agreement was agreed upon in a very short period of time, thanks to the efforts of both government officials, and went into effect on January 1st this year. In addition, the Regional Comprehensive Economic Partnership (RCEP), which had been negotiated for many years, was finally signed by the leaders of 15 Asia-Pacific nations in November last year. The RCEP is expected to stimulate the region’s trade and investment and ensure a more resilient and efficient supply chain.
In the United States, a presidential election was held in November last year, and the incoming administration appears likely to shift the country’s focus back to emphasizing international cooperation and relations with its allies. Policy-wise, President-elect Biden has stated that he intends to place greater emphasis on the environment, including the return to the Paris Agreement, and this should be seen as a new opportunity to proceed with various initiatives. The pandemic aside, much of the world’s focus over the past few years has been on the tensions between the US and China, and the majority consensus is that this will continue. Under these circumstances, Japan needs to work with other countries and regions to lay the groundwork for new international collaborations and continue to demonstrate leadership in its aim to achieve a Free and Open Indo-Pacific.
This year will be a pivotal one, as we work to return peace and stability to the world and continue to build sustainable economies and societies. But in order for those things to happen, there needs to be global distribution of safe and effective COVID-19 vaccines. COVID-19 vaccinations have already begun in the UK and elsewhere, and its efficacy is promising. It will be a year in which the trading sector will strengthen its efforts to build new, post-COVID-19 business models, review supply chains, and reinforce efforts to solve the problems facing modern society. The forefront of which is decarbonization. Furthermore, with digitalization picking up speed, digital transformation must be leveraged to bring about sweeping structural reforms. To support corporate initiatives, the Japan Foreign Trade Council (JFTC) will continue to be proactive, whether that means promoting more joint research and discussions or making proposals to the government.
Last year, we celebrated the 20th anniversary of Action for a Better International Community (ABIC), a private non-profit organization that the JFTC established in April 2000. It now has close to 3,000 registered members who are engaged in a broad array of activities. Our council is committed to continuing its work with ABIC to address numerous societal challenges.
For half a century, the JFTC was headquartered in Hamamatsucho, but as of this year it was relocated to new offices in Kasumigaseki, a district in Tokyo’s Chiyoda Ward. The Kasumigaseki office is equipped with a number of new facilities where its members can communicate effectively in a secure, relaxed setting. We will practice our catch phrase “Pioneers of a New Era”, and set forth into the unchartered waters of a post-COVID-19 world.
In conclusion, I hope that the JFTC will continue to receive ever more of your consideration and cooperation in 2021, and I wish all of you a very healthy, happy and prosperous new year.