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2022 New Year’s Remarks by Chairman KOBAYASHI Ken

January 4, 2022

I would like to wish all of you a Happy New Year as we welcome in 2022.

Looking back at 2021, the global situation could be described as one of disorder, perhaps highlighted by the continued power struggle between the US and China following the inauguration of the Biden administration in January. In addition, there was also the coup d’état in Myanmar and the Taliban’s return to power in Afghanistan. The US and its allies have continued to oppose China on many fronts, two examples of which being supply chains and human rights, the former being particularly crucial to economic security.

Geopolitically, 2022 will also be a significant year, with presidential elections taking place in South Korea and France, the Chinese Communist Party holding its 20th National Congress, and the US holding its midterm elections. The effects of these events on not only US-China relations but the entire world situation deserve close attention.

The global economy had been improving in 2021 supported largely by the accelerated COVID-19 vaccine rollout and the relaxation of trade and travel restrictions. Recently, however, the recovery has been slowed by the new Omicron variant, worldwide inflation and surging prices resulting from tighter supply of resources and raw materials.

There are a number of uncertainties in 2022. These include new surges in COVID-19 infections, a continuation of the global semiconductor shortage, stalled economic growth in China, and the normalization of monetary policies that could disrupt markets. To revive the global economy and get it back on track for growth, both governments and businesses must make genuine commitments to digital transformations and carbon neutrality, improving their operations and structures.

In recent years, countries around the world have tended to put their own interests first, and this attitude became more pronounced during the initial stages of COVID-19. Since last year, however, there have been signs of readiness to cooperate on shared challenges which must be resolved collectively by the international community. Two key issues are climate change and the global trading system. The former has been addressed at the COP26 meeting in Glasgow, where in spite of their differences the participating countries reached agreement on the 1.5 degree target. Regarding the latter, we have witnessed a number of developments which have revived and strengthened international trade systems over the last year. These include the RCEP agreement going into force on January 1st and negotiations among UK, China and Taiwan to join the CPTPP. We also saw the development of frameworks to facilitate the supply of vaccines and other medical devices, including measures to remove equitable financing barriers. In addition, rules on international taxation have been reviewed for the first time in almost a century. These and other moves are creating more opportunities for international cooperation.

Here in Japan, swift and steady efforts are needed to promote policies dedicated to achieving carbon neutrality, digitalizing society, revitalizing the economy and bolstering national security. These efforts must be led by the Kishida administration and sustained over the medium and long terms. For their part, Japan’s Shosha will continue to leverage their business activities to find solutions that are invested in maintaining industrial competitiveness, ensuring energy security and serving the interests of Japan and its citizens.

As “Pioneers of a New Era,” Japan Foreign Trade Council (JFTC) members shall do their utmost to promote public-private partnerships to achieve Japan’s strategic aims. We remain committed to offering new policy proposals and enhancing member services to help revitalize Japan’s society and economy. We have already planned to hold a “Shosha Symposium” on the theme of UN’s sustainable development goals, followed by the announcement of our special research project results on “Shosha in the New Digital Era”.

We appreciate your kind support for JFTC in 2022 and I wish all of you a very healthy, happy and prosperous year.

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