Position Paper -- JAPAN

APEC 2000

Japan is working to alleviate an economic downturn through private sector led growth, beginning a knowledge-based 21^st century economy by solidifying socio-economic reforms. In addition, Japan is highly dependent on foreign trade due to the lack of natural resources available on the island. This nation is also one that is among the most developed along the Pacific Rim. This combination of characteristics results in Japan’s commitment to investment in the development of other nations in the region. Based upon the 182.1 billion yen currently invested by the JBIC in developing Asian countries, this commitment is a strong one.

Japan stands only to gain in APEC correspondence and cooperation. Its goal is to liberalize trade and investment vital to the country’s and region’s future success. Many developing countries do have the natural resources, but lack the ability to trade effectively and freely with countries such as Japan. Through investment in these nations, Japan’s objective is to make this trading possible.

Sustainable Development

The current situation of Japan’s economy consists of its gradual recovery from an economic recession in 1998, although the private-sector demand remains weak. After five consecutive quarters of negative growth, there has been two quarters of positive growth. In some sectors, structural reforms are underway while others have much more to do.

The plans to revive the Japanese economy fully are projected to bring Japan to its full capacity by the second half of the year 2000. In the year 2001, the economy is to shift from private sector recovery to a new growth trajectory to stabilize and steer its long-term economic development. This economic structural reform has deregulation as one of the most important policies. Included is the Deregulation Action Program, which is the governmental means to encourage regulatory reform.

Structural reform of the Japanese economy includes the enhancement of sustainable development. As Japan recovers from economic depression, sustainable development in areas such as agriculture, clean production, forestry, energy and the longevity of cities has become increasingly important.

Japan’s food self-sufficiency ratio has declined to well below 50%, an extraordinarily low level in comparison with other industrialized nations. Japan bases its policies on maintaining domestic agricultural production at the highest possible level. This policy is aimed at halting the downward trend in food self-sufficiency in spite of its limited natural resources. Japan has since become the largest importing country of farm products in the world.

Cleaner production means the continual application of preventive environmental strategy to create products and services to increase the overall efficiency and reduce the risks to humans and the surrounding environment. Eco-efficiency, pollution prevention, waste minimization and resource conservation are the main subject matter under the term clean production. This includes conserving Japan’s raw materials and limiting the toxicity of all emissions and wastes before they leave a processing plant.

Sustainable forestry ensures that implemented strategies account for the full range of environmental, economic and social values of forests. Japan seeks to facilitate educational training opportunities to foster networks that advance sustainable forestry practices.

Japan launched the Energy Working Group in 1990 to emphasize energy’s contribution to the region’s economic and social well being, while alleviating the environmental effects of energy supply and use. The EWG investigates energy policies and plan priorities such as sharing basic resource demand and supply outlook data as well as considering regional energy policy implications and responses to the wide-reaching energy-related problems.

As in most APEC member countries, sustainable development is fundamentally linked to the sustainability of cities. Japan has implemented a Program of Sustainable Cities which includes measures to bridge the knowledge gap, encourage investment, integrate public and private sectors, enhance human well being and the quality of life and to engage stakeholders at the community level and draw on their creativity and knowledge.

As Japan attempts to rebuild its economy, they are undertaking steps to upgrade facilities and equipment to advance research dramatically as well as promoting quicker re-employment and enhancement of the social safety net. This would create the realization of an anxiety-free work environment and lifestyle. Even though Japan is on the economic up-rise, they still have to achieve much positive growth.

Intellectual Property Rights

At the brink of a new millennium Japan is ready to unite itself with other developed countries, namely the United States, to update worldwide intellectual property rights. In the past four years Japan and the United States have established two important agreements, the first being the Joint Statement by the Government of the United States and the Government of Japan concerning Semiconductors written on August 2, 1996. As a result of the US, Japan, and other developed countries turning towards industries focused on technology Japan and the US agreed on some common principles to run trade. These include the importance of market principles, consistency with WTO rules, and international cooperation. The two countries also want to create a Global Government Forum in which participants can discuss various trade issues including but not limited to the protection of intellectual property rights.

Seeing as this agreement expired on July 31,1999 in August of 1999 the United States and Japan came to another agreement. This time they were concerned with patents and the improvement of each other’s current systems. In 1994 they had created a framework to work off of and as of the 1999 agreement Japan was farther along than the US in the agreed upon measures. Japan appreciated the fact that the American Senate eventually passed patent bill H.R.1907 but they are strongly encouraging the US to pass future patent bills without having to add exceptions. According to the Japanese Patent Office, as of August 1999 the United States had yet to introduce an early publication system and improve the reexamination system.

In working on IPR issues Japan and the US plan to continue working together on further establishing a patent system that will eventually be in effect worldwide. With two world powers working and the creation of organizations such as the Global Government Forum they are becoming closer to that goal.

Japan has established many laws in order to prevent counterfeiting. The Patent Office has even gone as far as to open a counseling section for counterfeits. "Counterfeit 110" was opened on March 3, 1998 in order to strengthen the functions of consultation, guidance, and advice in relation to intellectual property rights infringement cases and to quicken the proceedings of necessary measures. For example: a ban on imports. The services this section executes are as follows.

1. Collecting and compiling cases of infringement of rights

2. Making contact with domestic government organizations such as customs and quickening proceedings, such as a ban on imports

3. Requesting foreign governments for improvements

4. Accelerating acquirement of rights for pending applications (trademarks, designs, etc.)

5. Providing information on systems of other countries concerning law enforcement methods

6. Providing information on offices in foreign governments for enforcement of rights and possible measures to proceed

7. Introducing local patent attorney’s offices

Japan also has laws to protect trademarks, patents, designs, etc. Each law is unique in its own way, yet all say that the law is to protect these things in order for further contributions to the development of industry. These laws clearly express Japan’s position of having developing countries become developed countries through industrialization. These laws also protect the country’s economy. For example, the patent law keeps the inventor’s idea theirs and protects them from any other country stealing their idea. Which in turn will keep that inventor’s idea in the country, bringing the money from that idea solely into that country. So for the economic well-being of the country it is in their best interest to have such laws.

Japan is going into the upcoming negotiations anticipating much progress to be made on both the topics of sustainable development and intellectual property rights. In the process, this country hopes to further trade among developing and industrialized nations in the region. Japan continues to support investment in non-industrialized countries, especially for economic and social development purposes. The goal of this island nation, limited in resources, is to establish a group of APEC members committed to free trade and development.