Trade and Investment Regime - Japan’s Perspective -

(2011)(1995)

Source: Global Trade Atlas

～ Trade Share (2011) ～ 　 TPP : 27% (Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, USA,

Vietnam, Mexico, Canada) 　 RCEP 　 : 47% (ASEAN, Australia, China, India, S. Korea, New Zealand) 　 　 JCK 　　　　 : 27% 　 EU 　　　　　　 : 11% 　

Change of Japanese Trade 【 Export & Import】

2

ASEAN-1018%

S. Korea7%

Other Asian Economies14%

USA27%

EU-2716%

Australia2%

Saudi Arabia1% Others

11%

China5%

China21%

ASEAN-1015%

S. Korea6%

Other Asian Economies8%

USA13%

EU-2711%

Australia4%

Saudi Arabia3%

Others20%

機密性２

3

Rank Country 20111 USA 14,7302 UK 14,1253 China 12,649- EU 36,052- ASEAN 19,645

　 Japan’s Outward FDI Flow (2011)

Source: JETRO

(million dollar)

Japan’s Outward Foreign Direct Investment

2005 2006 2007 2008 2009 2010 20110.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

6.8(15.0%)

7.9(14.7% )

10.7(17.3%)

12.3(20.0%)

14.6(21.4%)

15.0(22.1%)

16.7(22.3%)

10.8(23.7%)

14.1(25.4%)

16.4(26.6%)

14.6 (23.7%)

16.1(23.6%)

14.9(22.0%)

16.7 (22.3%)10.4

(22.7%)

12.8(23.9%)

15.0(24.3%)

14.4(23.3%)

16.2(23.7%)

17.3(25.6%)

20.0(26.7%)

17.6(38.7%)

18.6(34.8%)

19.7(31.9%)

20.5(33.1%)

21.3(31.2%)

20.5 (30.3%)

21.4(28.6%)

USA

Asia

EU

Others

Source: Bank of Japan

Total:45.6

Total:53.4

Total:61.8 Total:61.7

Total:68.2 Total:67.7

(trillion yen)Total:74.8

　 Japan’s Outward FDI Stock

RCEPUnder discussion by the

governments

ＮＺ

USASwitzerlandTook effect

in Sep. 2009

GCCUnder negotiation

GCC : Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Qatar, Oman

EUConcluded

scoping exercise

TurkeyUnder joint study

Republic of KoreaNegotiation suspended

MongoliaUnder negotiations

China-Japan-KoreaNegotiation will be launched

within this year

ChileTook effect

in Sep. 2007

MexicoTook effectin Apr. 2005Revised in Apr. 2012

PeruTook effect

In Mar. 2012

CanadaConcurred with launch

of negotiations

AustraliaUnder negotiation

TPPContinue consultations toward participating with the countries concerned

MalaysiaTook effectin Jul. 2006 Brunei

Took effectin Jul. 2008

ThailandTook effectin Nov. 2007

IndonesiaTook effectin Jul. 2008

Singapore Took effect in Nov. 2002,

revised in Sep. 2007

PhilippinesTook effect

in Dec. 2008

VietnamTook effect

in Oct. 2009

IndiaTook effect

in Aug. 2011

ASEAN (AJCEP)Took effect in Dec. 2008

ColumbiaConcurred with

launch of negotiations

Under Negotiation

Under Study/discussionTook Effect/Signed 12 countries and 1 region

5 countries and 1 region

1 country and 3 regions

4

Development of Japan’s EPA/FTA Networks

5

Road to FTAAP

(1) WTO Information Technology Agreement (ITA) WTO/ITA was established in 1997 to eliminate tariffs on IT-related products. Currently, 75 Members participate in the

agreement covering 97% of the world trade of the products concerned. Backed by industry’s request, Japan and the US led to launch the negotiation on the expansion of the product

coverage. In May 2012, many Members supported starting the work of the ITA expansion. In September 2012, APEC Leaders agreed to swiftly achieve a good outcome of the negotiations.

Way Ahead

- Concluding the negotiation swiftly.

(2) A new agreement on Trade in Services (International Services Agreement : ISA) A number of WTO members (currently 20 including Japan and the US) have been discussing a new agreement on

Trade in Services toward high level of liberalization. Being comprehensive in scope, including market access commitments that correspond as closely as possible to

actual practice, providing opportunities for improved market access, and containing new and enhanced rules.

Way Ahead

- Aiming to start negotiations as early as possible.

(3) The Anti-Counterfeiting Trade Agreement (ACTA) The ACTA was inspired by Japan’s proposal to create a new international framework against counterfeit and pirated

products. 8 countries including Japan and the US signed in Tokyo in October 2011. Japan deposited the instrument of acceptance on October 2012 and became the first party to the ACTA.

Way Ahead

- Adding participants to the Agreement

- Further development of the Agreement 6

Pluri-lateral Agreements Pluri-lateral Agreements have the potential for creating the basis of future multilateral system.

USA / Canada① Gas production decreased in the U.S.Had been expected to increase its LNG import② Since then, shale gas production increased rapidly LNG import became unnecessary

③ Shale gas production further increased Started to consider LNG export

　 Qatar① Increased LNG production capacity

expecting LNG export to the U.S.② Could not export to the U.S. Increased exports to Europe,

instead③ Increased export to Japan after the Earthquake.

　　　　 Russia①Competing with Qatar in European markets②Failed to agree with China on export price③Seeking to expand export to Japan

after the Earthquake

Japan 　 Korea① Demand in Japan increased after

the Earthquake, ② Differential between LNG import

prices in Japan/Korea and gas price in the West expanded

　 China① Increased natural

gas imports from Turkmenistan

② Uncompromising on prices on imports from Russia

　 EU① Increased LNG import from Qatar② Seeking new gas import routes

bypassing Russia

Turkmenistan① Increased natural gas

exports to China ② Seeking new gas export

routes bypassing Russia

Australia① Supplying to Asian markets② Expected to substantially increase its

LNG supply capabilities

Global Picture of Natural Gas

Resource Trade