Japan-China-ROK Trilateral Summit Meeting, Japan-ROK Summit Meeting, Japan-China Summit Meeting, and Other Events
Cabinet Secretariat, Wednesday, May 9, 2018
[Provisional Translation]
On May 9, 2018, Prime Minister Shinzo Abe attended the Seventh Japan-China-ROK Trilateral Summit Meeting, the Japan-ROK Summit Meeting, the Japan-China Summit Meeting, and other events.
In the morning, Prime Minister Abe attended the Japan-China-ROK Trilateral Summit Meeting at the Akasaka Palace State Guest House together with H.E. Mr. Li Keqiang, Premier of the State Council of the People’s Republic of China, and H.E. Mr. Moon Jae-in, President of the Republic of Korea (ROK). After that, the three leaders made a joint press announcement, and then attended the Japan-China-ROK Business Summit held in Tokyo.
At midday, Prime Minister Abe held a summit meeting with President Moon at the Prime Minister’s Office. After that, inviting President Moon, the Prime Minister also hosted a luncheon meeting at the Prime Minister’s Official Residence.
In the afternoon, at the Akasaka Palace State Guest House, the Prime Minister, together with Premier Li, attended a salute and guard of honor ceremony. The two leaders then held talks, followed by a signing ceremony and joint press announcement. In the evening, Prime Minister Abe hosted a banquet inviting Premier Li and other guests.
In his greetings at the banquet, the Prime Minister said,
“I would like to extend my heartfelt welcome once again to H.E. Mr. Li Keqiang, Premier of the State Council of the People’s Republic of China, and his delegation to Japan. Forty years ago, here in Tokyo, then Prime Minister Takeo Fukuda and then Vice Premier Deng Xiaoping exchanged the instruments of ratification for the Treaty of Peace and Friendship between Japan and the People’s Republic of China and built a bridge between the two countries. Today, between Japan and China, there exist a vast number of bridges connecting the two countries together.
People-to-people exchange is among one of them. Forty years ago, the annual traffic of the people between Japan and China was just 40,000. It has now increased to more than 40,000 over a mere two days. In addition, more than 100,000 students from China are studying in Japan, the largest number among the various countries. I would like to promote such exchanges between our peoples in a range of areas even further, taking advantage of the opportunities of the 2020 Tokyo Olympic Games and 2022 Beijing Olympic Games.
Our economic relations is another bridge connecting the two countries. Over the past 40 years, the total amount of trade between Japan and China has grown significantly, increasing by 60 times. Japan’s investment in China has now reached 1 trillion yen, while the number of offices or production centers of Japanese companies in China exceeds 30,000. This has greatly contributed to creating jobs in China. Japan and China, as the second and third largest economies in the world, are inseparable partners.
Furthermore, local government exchange between the two countries is another bridge bringing the two countries together. Exchanges between sister cities of Japan and China began immediately after the normalization of diplomatic relations in 1973, starting with the development of the relationship between Kobe City and Tianjin City. There is now 360 pairs of sister cities between Japan and China. Such exchanges between local cities have never ceased, no matter the circumstance of the Japan-China relations, and have continued to serve as a bond connecting the two countries. Both Premier Li and I will be attending the Japan-China Governors’ Forum that will convene in Sapporo on May 11, and I am looking forward to experiencing firsthand such a vital exchange between the local governments there.
There are too many bridges existing between the two countries to be counted here. The crowds trying to catch a glimpse of the baby panda, Xiang Xiang, born in June last year, have flooded Ueno Park. Xiang Xiang has created a new ‘panda boom,’ the first since the arrival of the two pandas, Kang Kang and Lan Lan to the park on the occasion of the normalization of diplomatic relations between our two countries in 1972. On the occasion of Premier Li’s visit to Japan, it has been decided that China would gift Japan with additional crested ibises. I would like to take this opportunity to extend my gratitude for this gift.
We have invited a number of top leaders to the banquet tonight, all of whom have supported the relationship between Japan and China in a variety of different areas, including politics, the economy, academia, and culture. It is thanks to all your efforts that Japan and China share such excellent relations today. I would like to take this opportunity to ask for your continued cooperation and contribution to the further development of these relations.
As I have mentioned at the press announcement earlier, a little over 30 years ago, Premier Li visited Japan as the Second Secretary of the Communist Youth League of China. At the time, my father hosted the dinner banquet as the Foreign Minister, and I attended as the Executive Secretary to the Foreign Minister. At the time, both Premier Li and I were 30 years old. We were young men, literally youthful, and I don’t think we have changed very much since then. Anyway, 30 years have now passed. We will further develop our bilateral relations moving forward as the leaders of Japan and China. In closing, I would like to raise my glass and give a toast to the health of everyone present here today, as well as to the further development of our two countries.”
Joint Statement on the ‘2018 Inter-Korean Summit’ by the Leaders of Japan, the People’s Republic of China and the Republic of Korea
Foreign Affairs, Wednesday, May 9, 2018
We, the leaders of Japan, the People’s Republic of China and the Republic of Korea, appreciate all the efforts to date by the international community toward the current positive development surrounding DPRK. The leaders of Japan and the People’s Republic of China especially appreciate and welcome the “Panmunjeom Declaration for Peace, Prosperity and Unification of the Korean Peninsula” agreed between President Moon Jae-in and Chairman Kim Jong Un on April 27 at the historic 2018 Inter-Korean Summit, which confirmed their common goal of the complete denuclearization of and the establishment of a permanent peace regime on the Korean Peninsula.
We, the leaders of Japan, the People’s Republic of China and the Republic of Korea, strongly hope that, building on the result of this Inter-Korean Summit, further efforts by relevant parties, in particular through the upcoming U.S.-DPRK Summit, will contribute to comprehensive resolution of concerns of the parties for peace and stability in the region.
We reaffirm that maintaining peace and stability on the Korean Peninsula as well as in Northeast Asia is our common interest and responsibility. We will strengthen our joint efforts toward this goal.
Joint Declaration of the Seventh Japan-China-ROK Trilateral Summit
Foreign Affairs, Wednesday, May 9, 2018
We, the leaders of Japan, the People’s Republic of China and the Republic of Korea met in Tokyo, Japan on May 9, 2018, on the occasion of the Seventh Trilateral Summit.
We appreciate the positive developments in various areas of trilateral cooperation as envisioned in the Joint Declaration adopted at the last Summit in November 2015 in Seoul. We also note that trilateral cooperation has contributed to building a regional platform for peace and cooperation in this region. In this regard, we renew our commitment to making further efforts towards deepening and broadening such cooperation. We acknowledge the responsibility we share in ensuring peace and stability in the region and the world, and as the three major economies with the total Gross Domestic Product amounting to more than 20% of that of the world, we recognize the important role we play in demonstrating a path for world prosperity. We therefore reiterate our commitment to working together to address both regional and global challenges.
Appreciating and reaffirming the Trilateral Cooperation Secretariat (TCS)’s role in advancing trilateral cooperation, we express support for the capacity-building of the TCS and its broader participation in the trilateral cooperation mechanisms. In addition, we reaffirm that the launching of the Trilateral Cooperation Fund will be instrumental for the development of trilateral cooperation projects.
Trilateral Cooperation
We concur on the significance of holding the Trilateral Summit on a regular basis to lend political impetus to trilateral cooperation and dialogue in a wide variety of areas, including political, economic, social, and sustainable development fields. Reaffirming that the three countries share everlasting history and infinite future, we will continue to cooperate according to the common recognition reached at the 2015 Trilateral Summit.
We highly value the holding of trilateral Ministerial meetings since the last Summit, including by the Ministers in charge of health, education, environment, finance, transport and logistics, culture, sports, economy and trade, and disaster management, which demonstrate the political will to coordinate our policies and collaborate in these areas. We also welcome the Eighth Trilateral Foreign Ministers’ Meeting held in August 2016 in Tokyo to lay the groundwork for the Trilateral Summit by exchanging views on strategic issues of our common interest and concerns.
We will strengthen our cooperation by noting the importance of regularizing trilateral meetings between the Foreign Ministries of our three countries.
We recognize the importance of promoting people-to-people exchanges in broadening and consolidating the foundation of trilateral cooperation.
With this in mind and referring to the PyeongChang Declaration, we look forward to developing trilateral cooperation in various fields including cultural and sports exchanges on the occasion of the Olympic and Paralympic Games held in the three countries, namely the successful PyeongChang 2018 Olympic and Paralympic Winter Games, as well as the Olympic and Paralympic Games to be held in Tokyo in 2020 and the Olympic and Paralympic Winter Games to be held in Beijing in 2022.
Reaffirming the importance of expanding tourism exchanges among our countries, we will continue to strive to reach the goal of 30 million people-to-people exchanges among the three countries by 2020 and will further disseminate the attractiveness of our countries through the Visit East Asia Campaign. We strongly support promotion of youth exchanges, and encourage further development of our programs including the Trilateral Youth Summit.
Acknowledging the importance of trilateral cultural exchanges through the East Asian Cultural Cities Program, we congratulate the designation of 2018 East Asia Cultural Cities and expect that cultural exchanges among the present and previous cultural cities will be promoted. Recognizing the significance of education cooperation in deepening mutual understanding, we also praise the trilateral commitment to promoting student exchanges in the field of higher education through the expansion of Collective Actions for Mobility Program of University Students in Asia (CAMPUS Asia), and expect the discussion would continue to further promote the program.
Considering the significance of public diplomacy in enhancing understanding and friendship among the people of the three countries, we welcome the continued consultations on the trilateral forum on public diplomacy.
We support the efforts to reinvigorate various personal and cultural exchange programs among the three countries, such as the Future Leaders Forum, and the Trilateral Cultural Shuttle.
Underlining the importance of cooperation among the three countries in the field of consular affairs, we will look into establishing the Trilateral Consular Consultation in order to strengthen the institutional framework for long-term cooperation by sharing best practices and exploring cooperative initiatives.
We are committed to building an open world economy. We recognize the importance of free and open trade and investment in achieving growth. We remain committed to liberalizing our economies, fighting all forms of protectionism, and improving business environment through our standstill and rollback commitment. We will work together to strengthen the rules-based, free and open, transparent, non-discriminatory and inclusive multilateral trading system underpinned by the WTO. We welcome discussions in the WTO on today’s challenges of international trade including e-commerce, investment facilitation, and Micro, Small and Medium-sized Enterprises (MSMEs). We emphasize the importance of bilateral, regional, and plurilateral trade agreements which complement and strengthen the multilateral trading system. We reaffirm that the Trilateral Free Trade Agreement is an important way to deepen our economic and trade cooperation and promote trade and investment liberalization and facilitation in East Asia, and will serve the common interests of the three countries. We reaffirm that we will make greater efforts to accelerate the negotiations on the Trilateral Free Trade Agreement aiming at realizing a comprehensive, high-quality and mutually beneficial FTA with its own value. We also reaffirm our strong commitment to making greater efforts to accelerate negotiations on the Regional Comprehensive Economic Partnership (RCEP) towards swift conclusion in achieving of modern, comprehensive, high-quality and mutually beneficial agreement, noting that significant progress on market access and rules is necessary. We will work together to realize high-quality and commercially meaningful outcomes in all areas.
We recognize the need to build an intellectual property (IP) system which values creative ideas and enables fair competition with a view to achieving continued economic growth and prosperity. We also acknowledge the important role of the trilateral IP cooperation, including the Trilateral IP Office Heads Meeting, in improving the regional IP system, and look forward to further development of trilateral cooperation.
Recognizing the negative impacts of excess capacity in industrial sectors, we will work together to address this issue.
We recognize the importance for this region to be better connected and are committed to pursuing trilateral dialogue and consultation in order to enhance regional connectivity and infrastructure cooperation to benefit the East Asian region as a whole. We will further strengthen economic and trade relations and deepen the convergence of interests. In this regard, we will enhance economic cooperation in areas such as supply chain connectivity, e-commerce, content industry, and standardization in order to boost competitiveness. We reaffirm the necessity of cooperation in energy between the three countries for the realization of sustainable development and shared prosperity in Northeast Asia. In this regard, we decide to conclude a LNG cooperation MOU between the three governments on an appropriate occasion in order to improve the transparency and liquidity of the Northeast Asian LNG market.
In light of the importance of e-commerce in the generation of new economic value, we share the view that the pragmatic cooperation on e-commerce on the basis of mutual benefit is in the interest of three countries.
We also acknowledge the value of the ongoing cooperation among the three countries in the fields of customs and transport for ensuring trade facilitation and security. In particular, being the host-countries of the large-scale international events in the coming years such as the Olympic and Paralympic Games, we reaffirm the significance of protecting the border, while facilitating the legitimate flow of goods and passengers, and welcome the decision at the Tripartite Customs Heads’ Meeting held in Tokyo in November 2017 to continue to exchange relevant information and share experiences.
Against the background of uncertainty of global economy with risks posed by a retreat from cross-border integration and faster-than-expected tightening in global financial conditions, we will continue a high degree of communication and coordination among the three countries to cope with possible financial instability. We will strengthen the regional financial cooperation by increasing the readiness and, effectiveness of Chiang Mai Initiative Multilateralisation (CMIM), further enhancing ASEAN+3 Macroeconomic Research Office (AMRO)’s surveillance and organizational capacity to fulfill its mandate as an independent, credible and professional international organization, and advancing the Asian Bond Market Initiative (ABMI). In this regard, we welcome the successful progress of the first CMIM Periodic Review and look forward to its successful completion, which contributes to stronger CMIM as a regional financial safety net by reinforcing the financing assistance including extended supporting periods in the case of IMF Linked Portion, establishing a better coordination process with the IMF to facilitate co-financing, and enhancing communication with all relevant parties to secure market confidence when CMIM is activated. We commend AMRO for its continued efforts to support CMIM implementation and to establish and expand regional and global partnership, and its attainment of UN Permanent Observer status. We also welcome the decision on capital increase of the Credit Guarantee and Investment Facility (CGIF) by its contributors in December 2017.
We emphasize the importance of jointly addressing common challenges related to human security, such as health and ageing society. Recognizing the importance of strengthening public health emergency preparedness and response, tackling antimicrobial resistance, and of achieving Universal Health Coverage, we assert the importance of our continuous cooperation in these fields. We will also reinforce collaboration on quarantine at point of entry.
In addition, we will expand our cooperation in the health service industry and telemedicine, and promote the exchanges of relevant information and personnel with a view to reducing non-communicable diseases such as cancer, as well as infectious diseases, which pose a serious threat to human health. We will actively share information and policies to cope with an aging population and to promote healthy aging, while striving to host the Trilateral Policy Dialogue on Aging on an ongoing basis. We will promote exchange and resource sharing in the area of assistive devices, physical and ICT accessibility and explore ways to enable persons with disabilities to participate in the rapidly developing internet economy and upgrade significantly the level and quality of their participation in all aspects of regional, economic and social activities. We will strive to make maximum use of science as well as Information and Communication Technology (ICT), such as brain science, technology for responding to climate change, technology for overcoming disability, Internet of Things (IoT), Big Data, and Artificial Intelligence (AI) to promote economic growth and social welfare, and to address global issues. In addition, we recognize the importance of collaboration in the field of communications, including 5G mobile communications and global roaming for promoting mutual exchanges and cooperation. We will facilitate joint research, technology cooperation, information sharing and human resources exchanges under Trilateral ICT Ministers’ Meeting. We also welcome and further encourage cooperation among corporate sectors, academia, think-tanks and related entities in this field.
We are committed to further strengthening trilateral policy consultation on cyber affairs including countering cybercrime, as well as on countering terrorism and violent extremism. We are committed to ensuring a secure ICT environment in which all sectors are able to enjoy its benefits and reaffirm the importance of collectively addressing issues of security in the use of ICTs. We welcome and support the cumulative reports of the UN Group of Governmental Experts (UNGGE) in the Field of Information and Telecommunications in the Context of International Security, which affirm that international law, in particular the UN Charter, is applicable and essential to maintaining peace and stability and promoting an open, secure, stable, accessible and peaceful ICT environment. In light of security challenges in the region, we will improve trilateral communication and cooperation on disarmament and non-proliferation. We will also continue the nuclear safety cooperation in the framework of Top Regulators’ Meeting.
In achieving sustainable development based on our commitment to the Agenda 2030, we will further enhance our cooperation in economic, social and environmental dimensions. We welcome the progress achieved in the on-going tripartite cooperative activities under the umbrella of the Tripartite Environment Ministers Meeting (TEMM) and, reaffirm our commitment to supporting and promoting the joint effort to tackle issues of common interest including prevention of air pollution and marine litter in the region as well as promotion of circular economy and resource efficiency. We look forward to the development of the Tripartite Cooperation Network for Environmental Pollution Prevention and Control Technologies.
We also underline the significance of cooperation in agriculture, transboundary animal diseases, forestry and biodiversity including invasive alien species management and sustainable use of living marine resources. We reaffirm our continuous efforts to strengthen our response to climate change, and reiterate our strong commitment to fully implementing the Paris Agreement. We endorse the Joint Statement of the Second Trilateral High-Level Dialogue on the Arctic held in Tokyo in June 2017, and reconfirm the importance of the trilateral cooperation on the Arctic, especially in the area of scientific research.
We also reaffirm our commitment to strengthening cooperation in disaster risk reduction, based on the principles and measures in the Cooperation on Disaster Management, adopted at the Fourth Trilateral Summit in 2011, recognizing the steady progress in such forums as the Trilateral Ministerial Meeting on Disaster Management and the Trilateral Tabletop Exercise.
Acknowledging the importance of effective implementation of the Sendai Framework for Disaster Risk Reduction 2015-2030 for substantial reduction of disaster risk and losses in lives, livelihoods and health, we will continue to make joint efforts in raising public awareness. In particular, we welcome the Kuroshio Declaration which was adopted in the High School Students Summit on World Tsunami Awareness Day.
We share the intention to explore the “3+1” modality, including through strengthening trilateral dialogue and consultation, to promote sustainable development in the region and beyond by sharing our development experiences and deepening practical cooperation in various areas.
Regional and Global Situations
We are committed to the complete denuclearization of the Korean Peninsula. We reaffirm that maintaining peace and stability on the Korean peninsula as well as in Northeast Asia is our common interest and responsibility. We stress that it is only the international cooperation on and the comprehensive resolution of concerns of the parties, in accordance with relevant United Nations Security Council Resolutions, that will pave the way for the bright future for the DPRK. The leaders of the People’s Republic of China and the Republic of Korea hope that the abductions issue between Japan and the DPRK will be resolved through dialogue as soon as possible.
Recognizing the importance of cooperation in regional and international fora, we will work in line to bring concrete and successful outcomes in the frameworks such as ASEAN+3 (APT), East Asia Summit (EAS), Asia Pacific Economic Cooperation (APEC) and G20 including 2019 G20 Summit to be held in Osaka, Japan. We note the progress made in the follow-up to the East Asia Vision Group II selected recommendations, including the vision to realize an East Asia Economic Community by 2020, to promote APT cooperation.
The Announcement by the President of the United States on the Joint Comprehensive Plan of Action (Statement by Foreign Minister Taro Kono)
Foreign Affairs, Wednesday, May 9, 2018
1. The United States announced on May 8th that it will withdraw from the Joint Comprehensive Plan of Action (JCPOA) and begin reinstating US sanctions on Iran.
2. It would be discouraging should the announcement have a major impact that makes the continuation of the JCPOA difficult. Japan, however, continues to support the JCPOA which contributes to the strengthening of the international non-proliferation regime and stability of the Middle East, and hopes for constructive actions by relevant parties. Japan will remain in close communication with relevant parties to maintain the JCPOA.
3. Japan pays close attention to the situation while carefully analyzing possible influence that this announcement may cause.
Press Conference on the Summit Telephone Talk with the President of China
Cabinet Secretariat, Friday, May 4, 2018
[Provisional Translation]
On May 4, 2018, Prime Minister Shinzo Abe held a press occasion at the Prime Minister’s Official Residence.
In regard to the Japan-China Summit Telephone Talk with H.E. Mr. Xi Jinping, President of the People’s Republic of China, the Prime Minister said,
“Just a moment ago, I held a summit telephone talk with President Xi Jinping of China. This is the first-ever summit telephone talk held between a Prime Minister of Japan and a President of China. We shared the view that having such an occasion reflects the improvement of the Japan-China relations and it is extremely important for us to show the international community our close collaboration on various international issues including North Korea, including that we held summit telephone talks.
Today, we discussed the North Korean issues and Japan-China relations. President Xi and I agreed that the inclusion of complete denuclearization in the recent Panmunjeom Declaration is highly regarded. We shared the recognition over the extreme importance of thorough implementation of the relevant United Nations Security Council resolutions, and concurred to continuously implement these resolutions. We must collaborate with the international community and strongly urge North Korea to take concrete actions. Concerning the situation that North Korea has started to make moves towards the resolution of the nuclear and missile issues, I once again expressed my respect to China and President Xi for urging North Korea. We also shared the view that Japan and China would continue to work together to address these issues.
During our summit meeting last year in Da Nang, Viet Nam, President Xi and I confirmed that the meeting marked a new beginning. This month, Premier Li Keqiang will visit Japan and it will be the first visit by a Premier in eight years. President Xi and I also agreed that, making most of the leaders’ visits, we would dramatically expand exchanges between our peoples in a variety of fields, and elevate our bilateral relations that have marked a new beginning to the next level this year, on the 40th anniversary of the Treaty of Peace and Friendship between Japan and the People’s Republic of China.
This was our first ever summit telephone talk, and we also shared the view that we, who have responsibility for peace and stability in this region, would continue to maintain communication on a variety of issues. I will continue to make efforts to bring Japan and China closer together to further develop our relationship, seizing opportunities like this.”
Visit to the Middle East: First and Second Days
Cabinet Secretariat, Monday, April 30, 2018
[Provisional Translation]
On April 29, 2018 (local time), Prime Minister Shinzo Abe visited the United Arab Emirates (UAE).
The Prime Minister visited the Founder’s Memorial.
On April 30 (local time), Prime Minister Abe first attended the Japan-UAE Business Forum, and then attended a guard of honor ceremony and welcome ceremony at the Presidential Palace. Following this, the members of the delegation accompanying the Prime Minister expressed their respects, and a commemorative photograph session with the economic mission was held.
The Prime Minister also held a meeting and an exchange of documents ceremony with H.H. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. At midday, Prime Minister Abe attended a luncheon hosted by the Crown Prince.
In the afternoon, the Prime Minister visited the Sheikh Zayed Grand Mosque, as well as a memorial commemorating those who have lost their lives in service to the UAE.
After that, Prime Minister Abe visited the Hashemite Kingdom of Jordan.
Visit to the Middle East: Third Day
Cabinet Secretariat, Tuesday, May 1, 2018
[Provisional Translation]
On May 1, 2018 (local time), Prime Minister Shinzo Abe, who is visiting the Hashemite Kingdom of Jordan, attended a welcome ceremony, followed by a meeting with H.E. Dr. Hani Al-Mulki, Prime Minister of Jordan. Prime Minister Abe then attended a signing ceremony.
After that, Prime Minister Abe attended a welcome event, and then exchanged greetings with His Majesty King Abdullah II bin Al-Hussein of Jordan.
Following that, Prime Minister Abe held a meeting with His Majesty King Abdullah, and at midday, attended a working lunch with the economic mission.
In the afternoon, Prime Minister Abe held a press conference.
After that, the Prime Minister visited Palestine, and held a meeting with H.E. Dr. Mahmoud Abbas, President of Palestine.
Visit to the Middle East: Fourth Day
Cabinet Secretariat, Wednesday, May 2, 2018
[Provisional Translation]
On May 2, 2018 (local time), Prime Minister Shinzo Abe visited the Jericho Agro-Industrial Park (JAIP) in Palestine (Jericho).
After that, the Prime Minister visited the State of Israel, and held a meeting with H.E. Mr. Benjamin Netanyahu, Prime Minister of Israel.
In the afternoon, Prime Minister Abe visited Palestine (Bethlehem), where he took a tour of the Church of the Nativity.
After visiting JAIP, the Prime Minister said the following,
“I am truly pleased to have realized my wish of visiting the Jericho Agro-Industrial Park (JAIP). This park can be described as Japan’s unique contribution to the Middle East Peace Process and a flagship project of Japan.
This area was a complete barren land about 10 years ago when the first Abe administration approved this project. Now, it has been transformed to a place where 12 Palestinian companies operate, generating employment for 200 people. Through Phase 2 of the project, this number is expected to increase to 300 or 400. I was told that a Japanese company will be opening a café here soon, and I hope that it will become a place where the locals can relax and interact.
The JAIP produces processed agricultural products and other items in this Palestinian land, creates employment, and generates profits. It also fosters mutual trust among the respective stakeholders who are vital to the Middle East Peace Process.
It could be said that the JAIP’s success is the result of the cooperation of Jordan, Palestine, Israel, and Japan. Going forward, the JAIP will contribute to Palestine’s self-reliance in economic development, and to building mutual trust among the respective stakeholders.
The stability of the Middle East is essential to Japan. Most of Japan’s energy comes from the Middle East. Along with ensuring stable supplies of petroleum gas, the objective of this project is for Japan to make a unique contribution to peace and stability in the region.
Yesterday, I held a meeting with President Abbas of Palestine, and after this, I am scheduled to hold a meeting with Prime Minister Netanyahu of Israel. Through these talks, Japan will make some valuable contributions to the Middle East Peace Process. Furthermore, with regard to the JAIP, a ministerial level meeting was also held among the four countries just a while ago. Japan will harness the JAIP to contribute to the achievement of peace in the Middle East. Thus far, it has been often said that energy was the only connection between the Middle East and Japan. Nowadays, we have a multilayered relationship that involves cooperation in very diverse areas, such as politics, diplomacy, education, and agriculture, as well as in the international arena. In this context, Japan will deepen its relationship with the Middle East further and contribute actively to the region.”
Japan-Israel Summit Meeting
Foreign Affairs, Wednesday, May 2, 2018
1 Summit Meeting
(1) Opening Remarks
Prime Minister Netanyahu stated that he welcomed Prime Minister Abe's visit, appreciated the recent progress made in bilateral relations, and expressed his expectations for their further strengthening and expansion.
In response, Prime Minister Abe stated that, he was glad to visit Israel three years after his previous visit and to meet Prime Minister Netanyahu again, and that he was most pleased that Japan-Israel relations has developed at an exponential level in comparison to the time when the second Abe Administration started. Advancements in the economic area were most remarkable. For instance, investment from Japan to Israel increased by approximately 120 times, and the number of Japanese businesses in Israel increased almost three-fold.
Prime Minister Abe stated that with this visit as a basis, he wishes to further accelerate the overall strengthening of bilateral relations together with Prime Minister Netanyahu, in fields including economy, political affairs and national security.
(2) Bilateral Relations
On bilateral relations, the two leaders acknowledged that both countries face difficult security challenges, and while welcoming the development of economic relations, confirmed that the two countries in the future will deepen strategic cooperation in fields including political affairs and national security. From this perspective, the two leaders shared the view that the two countries will newly establish a joint foreign and defense consultation between both countries.
Prime Minister Abe stated that he appreciated Israel's national efforts aimed at dealing with rapidly evolving cyber threats, and the two leaders confirmed that the two countries will strengthen cooperation in cyberspace. The two leaders agreed that Japan will send government officials to visit Israel's cyber-security complex in Beer Sheva, Israel.
Prime Minister Abe stated that science and technology, which form the basis of cyber capabilities and innovation, are areas of strength for both Japan and Israel, and wished to see progress made in cooperation in various fields of research and development, to which Prime Minister Netanyahu agreed.
Further, Prime Minister Abe mentioned that the "Japan Israel Innovation Network (JIIN)" was launched last year, and stated that programs such as the sending of young entrepreneurs, holding of seminars and matching events in areas including cyber, innovation and biotechnology are being planned to take place. In response, Prime Minister Netanyahu appreciated such efforts and stance by Japan, and stated that combining Japan's technology and Israel's innovation will open up wider possibilities, and wished to deepen cooperation in various areas.
(3) Middle East Peace Process
On the Middle East Peace Process, Prime Minister Abe stated that Japan supported a two-state solution, that direct dialogue between the parties as well as the involvement of the United States are essential to the realization of peace, that Israel's constructive engagement is also important, and requested restraint on settlement activities.
Further, the two leaders discussed the "Corridor for Peace and Prosperity" initiative, and Prime Minister Abe welcomed the joint-decision on the construction of an access-road from the Jericho Agro-Industrial Park (JAIP) to the border with Jordan reached at the Ministerial-Level Meeting of the Four-Party Consultative Unit on April 29th, 2018, and requested the continued cooperation of Israel toward the early start of construction.
In response, Prime Minister Netanyahu welcomed Japan's commitment to the "Corridor for Peace and Prosperity" initiative, and stated that Israel will strengthen its own efforts toward the initiative, as well as mentioned the importance of dialogue between the parties for making progress in the Peace Process.
(4) North Korea
On the issue of North Korea, Prime Minister Abe explained Japan's positions, that the international community needs to examine closely North Korea's concrete actions and that the international community must not make errors on the timing of easing sanctions learning from lessons of the past. Furthermore, he stated that a nuclear-armed North Korea cannot be accepted, that maximum pressure must be maintained in order to achieve complete, verifiable, and irreversible dismantlement (CVID) of weapons of mass destruction (WMDs) and ballistic missiles and that the Middle East should not become a loop hole in sanctions. Finally he said that Japan will cooperate with Israel and will continue to call upon other nations to reconsider their relations with North Korea and to strengthen measures against attempts to bypass sanctions, and that Japan requests the understanding and cooperation of Israel toward the early resolution of the abduction issue.
In response, Prime Minister Netanyahu stated that Israel completely supports the position of Japan.
2 Expanded Summit Meeting
Following the above, an expanded summit meeting with the participation of representatives of major Japanese companies was held.
At the beginning, Prime Minister Abe stated that the economic relations of the two countries was developing at an exponential level. Compared to the time the second Abe Administration started, the number of Japanese companies in Israel increased almost three-fold from 25 to 70, and Japanese investment in Israel increased from 1.1 billion yen to 130 billion yen, a 120-times increase. The bilateral Investment Agreement has entered into force, and further expansion of relations was to be expected.
Further, he noted that in the summit meeting held earlier, he shared the view with the Israeli side on intentions to expand relations among private companies and mutual exchange of business persons through programs under the Japan-Israel Innovation Network (JIIN), a joint Government-Business platform, among others.
On the Red Sea Dead Sea Project, he noted that the project contributes to remedying shortages of water as well as confidence building in the region, and that Japanese companies were showing interest in the project, and that he looked forward to the smooth progress of the project.
Finally, he noted that high ranking representatives of Japanese companies with in-depth relations with Israel had accompanied him in his visit, and expressed his hope that these companies will become the flagbearers of expanded relations between Japan and Israel in the future.
In response, Prime Minister Netanyahu expressed his expectations for strengthened economic relationship between the two countries.
The representatives of the Japanese companies participating in the meeting also made statements, and Prime Minister Netanyahu introduced Israeli companies and mentioned the possibilities for collaboration between such Israeli companies and Japanese companies.
Prime Minister Abe also stated that he hoped that the Japanese companies which visited Israel in this trip will expand investment and projects in Israel and form a foundation for strengthening the bilateral relationship between Japan and Israel.
Japan-Palestine Summit Meeting
Foreign Affairs, Tuesday, May 1, 2018
On May 1st, commencing at 7:15 p.m. for approximately 45 minutes, Mr. Shinzo Abe, Prime Minister of Japan, during his visit to Palestine, held a summit meeting with H.E. Dr. Mahmoud Abbas, President of Palestine, at the Prime Minister’s Office. The overview of the meeting is as follows.
At the beginning, President Abbas welcomed Prime Minister Abe and expressed his sincere gratitude for Japan’s consistent support. He then explained the current situation surrounding Palestine. In response, Prime Minister Abe welcomed their reunion after 2 years and given that Palestine is currently in a very difficult situation with issues such as Jerusalem, expressed that Japan is in support for a two-state solution and that he came on this trip to communicate that Japan is determined to take on an active role in the Middle East Peace Process. Furthermore, with regards to the Jericho Agro-Industrial Park (JAIP), which was agreed upon during the first Abe Administration, Prime Minister Abe mentioned that he will be visiting the JAIP on the following day, May 2nd, for the first time. He expressed that he hopes this visit would further develop the Japan-Palestine relationship.
Discussions were then made on the Middle East Peace Process. Prime Minister Abe expressed that Japan understands the sensitiveness of Jerusalem for Palestine and that he believes that the issue should be resolved through negotiations, based on the consent of both parties and relevant UN resolutions. He also stated that Japan will not be moving its embassy to Jerusalem. In addition, Prime Minister Abe indicated that the role of the US is indispensable and if the US were to suggest a solution, it is important that Palestine accepts and sits at the negotiation table. He pointed out that in the end, there will be no resolution to the issue without direct negotiation between the both parties. In response, President Abbas expressed his gratitude for Japan’s consistent support and assistance and that he looks forward to Japan’s role in achieving peace in the Middle East.
With regards to Japan’s aid towards Palestine, Prime Minister Abe indicated that Japan has provide a total of about 1.86 billion USD of aid towards Palestine and that an additional aid of 10 million USD through the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) was decided on April 24th. In addition, he stated that Japan is ready to provide additional food assistance. As basic infrastructure such as water facilities is necessary for basic livelihood in Gaza, he explained that Japan has already declared providing up to 10 million USD towards the Gaza Central Desalination Plant project.
On the “Corridor for Peace and Prosperity” initiative, both leaders welcomed the agreement at the Four-Party Ministerial Meeting on the construction of an access road from JAIP to the Jordanian border. Prime Minister Abe stated that Japan is ready to provide assistance towards the construction of the access road and that he hopes for its early commencement. President Abbas said that this project an excellent project “Made in Japan” and that it provides hope for the Palestinian people and that he looks to further cooperate.
Regarding the situation in Palestine, Prime Minister Abe stated that for the improvement and stability of the humanitarian situation in Gaza, through reaching reconciliation, it is necessary that the Palestinian Authority will be able to govern Gaza. In response, President Abbas explained on the outcomes of the Palestinian National Council (PNC) and the future prospects of the situation.
Finally, on the situation in North Korea, Prime Minister Abe gave an explanation on Japan’s stance. He stated that in order to achieve the Complete, Verifiable and Irreversible Dismantlement (CVID) of weapons of mass destruction and ballistic missiles, maximum pressure must be maintained and that the Middle East should not become a loophole for sanctions. Prime Minister Abe also explained that the abduction issue is the most important issue for Japan. President Abbas responded by expressing support for Japan’s stance and that he would like to cooperate towards the resolution of the abduction issue.
Press Occasion on the Summit Telephone Talk with President Trump of the United States
Cabinet Secretariat, Saturday, April 28, 2018
[Provisional Translation]
On April 28, 2018, Prime Minister Shinzo Abe held a press occasion at the Prime Minister’s Official Residence.
In regard to the Japan-U.S. Summit Telephone Talk with the Honorable Donald J. Trump, President of the United States of America, the Prime Minister said,
“Following the Inter-Korean Summit, I held a summit telephone talk with President Trump.
Prior to the telephone talk between President Trump and myself, he received a phone call from President Moon Jae-in of the Republic of Korea (ROK), who spoke with President Trump about the details of the discussions held during the Inter-Korean Summit. Based on that telephone talk, we held our Japan-U.S. summit telephone talk. While President Trump gave me a detailed explanation, I would like to refrain from going into details on it at this time.
We shared the recognition that yesterday’s Inter-Korean Summit was a positive development for the comprehensive resolution of outstanding issues of concern regarding North Korea, including denuclearization, and that it should be welcomed as a historic first step toward peace and stability in Northeast Asia.
It is important that North Korea takes concrete actions moving forward. We were also in agreement on that point, and shared the view that Japan and the United States will continue to closely monitor the moves of North Korea. I believe that Japan and the United States have taken the lead on this issue, and that the maximum pressure campaign on North Korea, led by Japan and the United States, under the close cooperation among Japan, the U.S., and the ROK has resulted in this major change and positive step. In other words, there will be no change to the basic policy of Japan and the United States. Tomorrow, I am scheduled to receive a briefing directly by President Moon over the telephone on the outcomes of the summit.
In any event, President Trump and I today shared the recognition that we will continue to urge North Korea to take concrete actions. I intend to exert every effort to deliver positive results, under close cooperation between Japan and the U.S., as well as among Japan, the U.S. and the ROK. We will work together for the success of the U.S.-North Korea Summit Meeting, closely cooperating between Japan and the U.S., as well as among Japan, the U.S. and the ROK, and exert every effort to resolve outstanding issues of concern regarding North Korea, in coordination with the international community including China and Russia as well.”
Statement at the 51st Annual Meeting of the ADB
Ministry of Finance, Saturday, May 5, 2018
Introduction
Mr. Chairperson of the Board of Governors, Mr. President, Governors, Ladies and Gentlemen:
First of all, I would like to express my sincere gratitude to the Government of the Philippines, the host country of this meeting, and the citizens of Manila for their warm welcome. Japan and the Philippines have developed a strong partnership in various respects, including Japan’s announcement of cooperation with the railway project in the Manila metropolitan area. I hope that the partnership between Japan and the Philippines will continue to expand and deepen.
Development of the Asia-Pacific Region and the Roles of Japan and ADB
＜overview＞
When ADB was established half a century ago, the Asia-Pacific region was in a state of severe poverty. Since then, the region has achieved remarkably strong economic growth. However, it is the region where over 300 million people are still living in poverty. It also faces a variety of development challenges, including widening inequality, infrastructure gap, rapid urbanization, and aging. Japan will continue to actively assist countries in the region in addressing these development challenges. ADB is expected to continue to play an important role as the core organization for the development of the region, making maximum use of the experiences and value addition over the past half century, including its strong partnerships with member countries.
＜Infrastructure＞
Infrastructure serves as an important backbone of economic activity. According to an estimate by ADB, infrastructure needs in the Asia-Pacific region amount to as much as 1.7 trillion dollars annually. We must respond to those needs.
In doing so, it is important to secure adequate infrastructure investment in terms of not only quantity but also quality. In order to promote “quality infrastructure investment,” Japan, in close cooperation with ADB, has been engaged in various activities. For example,
To promote private-sector infrastructure investment, Japan has provided approximately US$300 million in equity investment and loans through a trust fund established within ADB in 2016, while ADB itself is providing approximately US$400 million in parallel.
To facilitate the use of high level technologies in infrastructure projects, Japan last year announced a plan to provide US$40 million over a 2-year period to ADB’s newly created High-Level Technology Fund.
To further promote quality infrastructure investment, I would like to take this opportunity to explain Japan’s new vision about such investment.
When you hear the term “quality infrastructure investment,” what first comes to your mind may be attributes of the completed infrastructure such as safety and economic efficiency in view of life-cycle cost. However, if we reflect on what “quality infrastructure investment” means, we realize that its significance goes beyond the physical value of the infrastructure to be developed.
When a country develops quality infrastructure and makes it open and available for everyone, its economic gear starts moving, leading to economic development. Quality infrastructure investment sustains inclusive growth through creating positive interactions between such elements as promotion of private-sector investment, job creation, capacity building, and sustainable borrowing. In other words, quality infrastructure investment powerfully drives the “virtuous cycles” for economic development. This “virtuous cycles” for economic development, I believe, is indeed another critical value created by quality infrastructure investment.
Based on this idea, toward G20 next year, we intend to make clear the effect of quality infrastructure investment as global public goods to realize the “virtuous cycles” for economic development, and upgrade the principles concerning the concept of quality infrastructure investment. In upgrading the principles, we intend to highlight economic efficiency, consideration for environmental and social impacts, and resilience against risks including natural disasters, as the factors of quality infrastructure investment that achieves the “virtuous cycles” for economic development. We will also emphasize governance, in particular, responsible financing and openness, as important elements.
It is also important to prepare a comprehensive menu of support measures. Such measures will range from upstream activities, namely project preparation, to downstream activities, namely financing for projects, and also cover data collection on quality. We believe that such menu will help developing countries invest in quality infrastructure with full ownership.
As for upstream activities, Japan is considering additional financial contributions to the ADB’s High Level Technology Fund.
On downstream activities, Japan has a new proposal. Taking a full account of current global trends on ESG investment, Japan will establish a new financing facility at Japan Bank for International Cooperation (JBIC).
This facility provides support for a variety of infrastructure projects that contribute to global environmental preservation, including renewable energy projects. We expect this new facility to take the lead in assisting developing countries in a new dimension. Under this new facility, Japan will closely cooperate with the international community, for example by co-financing with MDBs.
By upgrading the principles in this way and preparing a comprehensive support measures including the JBIC’s new facility, we will be able to further promote quality infrastructure investment as global public goods. This will contribute to achieving the “virtuous cycles” for economic development in developing countries, including in Asia and Pacific region, thereby further promoting mobilization of private resources.
＜Disaster Risk Management＞
Quality infrastructure investment aims to promote resilience against natural disasters, and is important for the Asia-Pacific region as it is prone to such disasters. The region has suffered from frequent typhoons, earthquakes and tsunamis, with significant adverse impacts on it economic growth. Japan welcomes ADB’s commitment to strengthening its engagement in disaster risk management (DRM) and encourages further mainstreaming of DRM in its operations by, for example, developing infrastructure projects that are resilient against natural disasters.
Small island states are particularly vulnerable to natural disasters. Japan believes that the 8th Pacific Islands Leaders Meeting in Japan’s Fukushima Prefecture this month and ADB’s annual meeting in Fiji next year, the first such meeting in the Pacific Islands, provide valuable opportunities to share Japan’s experiences and knowledge in and strengthen international cooperation on DRM .
Japan welcomes the agreement on establishing “Southeast Asia Disaster Risk Insurance Facility”, for rapid mobilization of financial resources in the wake of natural disasters. Japan will make further contributions to strengthening the region’s resilience against disasters.
＜Health＞
Provision of quality medical care and health services is the foundation of economic stability and national development. Japan places a high priority on the promotion of universal health coverage (UHC) in developing countries. Japan hosted the UHC Forum in Tokyo in December last year with the high level participation from ADB and many countries/other organizations. The forum confirmed the important role of finance ministers in establishing sustainable health finance systems. As a frontrunner to introduce UHC, Japan is committed to continue to lead the global discussions on UHC, taking advantage of its experiences under a rapidly-aging society.
Dealing with public health emergencies is also a critical challenge. Japan welcomes the steady use of the facility for regional health security under the ADF XII (Asian Development Fund the 12th Replenishment).
At ADB’s Annual Meeting in Yokohama last year, a Memorandum of Understanding (MOU) was signed between ADB and JICA (Japan International Cooperation Agency) on the promotion of health security and UHC. Japan welcomes the launch of activities in Lao PDR and Mongolia based on the MOU, and encourages ADB to enhance its engagement in the health sector.
＜Debt Sustainability＞
There has been a growing concern on debt sustainability in developing countries. In order to ensure “sustainable finance”, urgent actions are required to promote data transparency in both creditor and borrower countries, and to enhance debt management capacity of developing countries. We expect ADB and other international organizations to play a bigger role in this regard.
Strategy 2030
Japan welcomes that extensive discussions on Strategy 2030 have been undertaken with member countries and various stakeholders, aiming for its finalization by the end of this year. Let me say a few words on key issues under “Strategy 2030” that Japan believes are of particular importance.
＜Approach to Assistance＞
Developing countries’ economic situations and their development needs are increasingly diversifying. Japan supports ADB’s new approach under “Strategy 2030” to provide assistance in a wider range of sectors, and to apply different financial terms according to countries’ income levels, specific situation, and assistance fields.
However, this approach should not require additional resources, or hamper the effectiveness and efficiency of assistance. Clear prioritization of ADB’s assistance is imperative at the country and sectoral levels.
With respect to assistance for upper middle-income countries, UMICs, it is important for ADB to shift its emphasis from quantity to quality. ADB should also focus its assistance on policy advice and knowledge sharing, as well as on global and regional public goods, such as environment issues including climate change. For countries above the income threshold under the graduation policy, ADB should be more ambitious in shifting its emphasis from quantity to quality and in focusing its assistance, with differentiated pricing. ADB’s capital base has been reinforced through the innovative merger of combining the Asian Development Fund (ADF) and ordinary capital resources (OCR). However, the shift of emphasis to quality and the prioritization in assistance for UMICs will help ensure ADB’s financial sustainability in the long-term and allocate more resources to poorer countries. I believe that this approach is consistent with ADB’s graduation policy.
ADB should be proud of having achieved successful graduation of countries such as Singapore and South Korea. These countries have transformed themselves from recipients of assistance to providers of assistance. Japan strongly hopes that ADB will help countries graduate, which is a marked evidence of success in the development of the Asia-Pacific region.
＜Organization and Staffing of ADB＞
ADB will need to have the organization and human resources to address specific and diversifying needs of developing countries. I expect that ADB will continuously review and improve its organization structure and human resources so that it can effectively carry out new focuses under “Strategy 2030”, such as health.
Conclusion
The Asia-Pacific region has now become a powerful driver of the global economic growth. It is said that if the region’s economy continues to grow at the current pace, its share of global GDP will increase to more than half by 2050. Japan hopes that a strong “Strategy 2030” will be formulated reflecting discussions at this Annual Meeting, and that ADB will fulfill its missions more effectively under President Nakao’s outstanding leadership. Japan, in close cooperation with ADB, will continue to contribute to further development of the region.
The Joint Statement of The 21st ASEAN+3 FMs’Meeting
Ministry of Finance, Friday, May 4, 2018
I. Introduction
We, the Finance Ministers and Central Bank Governors of ASEAN, China, Japan and Korea (ASEAN+3), convened our 21st meeting in Manila, Philippines under the co-chairmanship of H.E. Heng Swee Keat, Minister for Finance of the Republic of Singapore, and H.E. Dong Yeon Kim, Deputy Prime Minister and Minister of Strategy and Finance of the Republic of Korea. The President of the Asian Development Bank (ADB), the Director of ASEAN+3 Macroeconomic Research Office (AMRO), the Secretary General of ASEAN, and the Deputy Managing Director of the International Monetary Fund (IMF) were also present at our meeting.
We exchanged views on recent global and regional economic developments and policy responses, and agreed to work together to strengthen the resilience and robustness of the regional economy to contribute to strong, sustainable, balanced and inclusive global growth. We also reviewed the progress of regional financial cooperation since our last meeting in Yokohama, Japan including the Chiang Mai Initiative Multilateralisation (CMIM), AMRO and the Asian Bond Markets Initiative (ABMI).
II. Recent Economic and Financial Developments in the Region
The ASEAN+3 region has contributed to improving the global economic condition toward a more synchronized global growth in trade and investment, while also benefiting from the broad-based recovery in advanced economies and strong global demand. Boosted by favorable global conditions, economic growth in the region is underpinned by resilient domestic demand, robust export growth, and stable inflation. We have taken advantage of these benign conditions to continue implementing important structural reforms, including the exploration of new sources of growth such as digital innovation, supported by the full set of policy tools, including appropriate macroeconomic policies.
Nevertheless, we remain vigilant against downside risks that may threaten the recovery in the global economy. We discussed the risks posed by rising trade protectionism and faster-than-expected tightening in global financial conditions, and uncertainty of geopolitical tension. These risks, individually or collectively, threaten the recovery in the global economy, and could induce large capital outflow and financial volatility in our region. We also welcome the Panmunjeom Declaration agreed between the leaders of South and North Korea on April 27, 2018 and look forward to further progress in easing geopolitical tensions in the region.
In this regard, we reaffirm our commitment to an open and rules-based framework for multilateral trade and investment to support global economic growth and development. We also recognize the importance of resisting all forms of protectionism, enhancing integration through deepening intra-regional trade, investment linkages, and improving connectivity, while at the same time maintaining our strong trade and investment linkages with the rest of the world. We commit to implementing macroeconomic policies, including an appropriate mix of fiscal, monetary and structural policies, tailored to national circumstances, to promote strong, sustainable, balanced and inclusive growth.
Fiscal policy will continue to promote growth and address inequality, and be targeted to support structural reforms and foster inclusiveness, while ensuring that debt as a share of GDP is on a sustainable path. Monetary policy will continue to ensure price stability in line with central banks’ mandates. Macroprudential policies will help mitigate systemic financial risks. We also affirm the importance of maintaining a sound financial sector as a core pillar in our economies’ growth and development. We will implement structural reforms to enhance our growth potential and facilitate the private sector involvement in our economy. In calibrating our policies, we will continue to clearly communicate these policies to the markets and the public. In addition, we also acknowledge the importance of accelerating infrastructure development to increase the region’s competitiveness and connectivity.
We pledge to strengthen cooperation in order to secure regional economic and financial stability. While recognizing the importance and benefits of capital flows, we will strengthen regional surveillance and remain vigilant against the risks of contagion and spillovers from excessive capital flow volatility. To build resilience against external shocks, we will continue to maintain adequate buffers, underpinned by the continued enhancement of our regional financial safety net.
III. Strengthening Regional Financial Cooperation
Chiang Mai Initiative Multilateralisation (CMIM)
We reaffirm our commitment to strengthen the CMIM and have reached a general agreement on the main contents of the first CMIM Periodic Review. This Review will be a key milestone in further strengthening the CMIM, which stands at the center of the regional financial safety net of the ASEAN+3. In this regard, we have agreed to reinforce the financial support including the flexibility to extend periods under the IMF-linked portion of the CMIM Agreement in order to ensure that the CMIM remains up-to-date, and reflective of the member countries’ circumstances, as well as global economic and financial conditions. We have also agreed to add an overarching legal basis for conditionality in order for the CMIM to support members in addressing their risks and vulnerabilities through policy recommendations as well as financial support (please see Annex below). We urge the Deputies to prepare the final text of the amended CMIM Agreement within this year for signing so that it can be executed at the earliest opportunity.
We acknowledge that in an increasingly integrated global financial system, stronger cooperation among the different layers of the GFSN (Global Financial Safety Net) is crucial to prevent and contain future crises and safeguard global financial stability. We welcome the successful completion of the 8th test run carried out with the participation of the IMF, subsequent to the previous year, in which information-sharing process relating to the activation of the CMIM arrangement with the IMF program was examined. It highlighted the importance of better cooperation with the IMF, while respecting the independence and governance of the CMIM and the IMF. Based on the outcome of the test run, we encourage close engagement at an early stage between the CMIM and the IMF, with the support of AMRO, to enhance effectiveness of the regional financial safety net. We appreciate the support of the IMF in the recent test run. We believe that strengthening communication with all relevant parties, including the media, will enhance public confidence if and when the CMIM Arrangement is activated. In addition, we request the Deputies to continue to discuss and review the future direction of the CMIM in the medium-to long-term perspective and report the progress at the next meeting.
We further welcome the continued work of our Deputies to further enhance the operational readiness of the CMIM including updating the CMIM Operational Guidelines (OG) and conducting further test runs jointly with the IMF. We acknowledge the progress made in improving the qualification criteria for the CMIM Precautionary Line, by enhancing the Economic Review and Policy Dialogue (ERPD) Matrix framework, which will be integrated into AMRO’s surveillance work. We encourage the Deputies, in cooperation with AMRO, to conduct a new round of pilot projects and look forward to the 9th CMIM test run in 2018 jointly with the IMF. We welcome the advancements made in developing the CMIM Conditionality Framework, and look forward to further progress in the development of the Guiding Principles and the Operational Guidelines for the CMIM Conditionality Framework. We look forward to further enhancements on the assessment methodology on the potential increase of the IMF De-linked Portion.
ASEAN+3 Macroeconomic Research Office (AMRO)
We recognize the significant role that AMRO plays in macroeconomic surveillance for the ASEAN+3 region, supporting the implementation of the regional financing arrangement, and providing technical assistance to members. We reaffirm our continued support for AMRO to further enhance its surveillance and organizational capacity to fulfill its mandate as an independent, credible and professional international organization, acting as a trusted advisor to ASEAN+3 members.
We welcome the substantive progress made by AMRO in improving and strengthening its core functions since we met in May 2017. AMRO has undertaken several major initiatives to enhance its surveillance framework and analytical toolkits. We look forward to the results of these efforts.
We welcome AMRO’s publication and communications policies, which will improve its public communications and raise its visibility. We encourage AMRO to continue publishing its surveillance assessments and reports to enhance the outreach and quality of its surveillance.
We support AMRO’s efforts to deepen its partnerships with global financial institutions. In this vein, we welcome the conclusion of the Memorandums of Understanding (MOUs) between AMRO and the IMF, and AMRO and the European Stability Mechanism (ESM). We further commend AMRO for becoming a United Nations Permanent Observer. We look forward to the completion of AMRO’s partnership strategy by the next meeting.
We welcome AMRO’s efforts to strengthen its capacity to support CMIM implementation, and commend the support provided by AMRO towards the enhancement of CMIM operational readiness, and the discussion on the CMIM Periodic Review. We look forward to more analytical support from AMRO on CMIM issues.
We commend AMRO for providing technical assistance (TA) to members through its secondment, consultancy and training programs, financed by China, Japan and Korea trust funds. We encourage AMRO to continue exploring innovative ways to meet the capacity building needs of members. We also encourage members to continue supporting AMRO’s TA programs.
We acknowledge AMRO’s contribution to the regional outlook discussion at the ASEAN+3 Leaders’ Meeting, ASEAN Finance Ministers’ and Central Bank Governors’ Meeting and Lancang-Mekong Cooperation respectively, and encourage AMRO to continue its support for broader regional agenda and initiatives.
We commend AMRO’s senior management team, led by Director Junhong Chang, for their sustained efforts and strong leadership in advancing AMRO’s development, and look forward to more concrete outcomes as AMRO executes its Strategic Direction and Medium-term Implementation Plan.
Asian Bond Markets Initiative (ABMI)
We welcome the ABMI’s significant contributions in developing local currency bond markets and facilitating regional financial integration. The ABMI’s initiatives have helped to mobilize the region’s substantial savings for long-term investment financing, and developed the local currency bond markets as an alternative source of financing. We recognize the important role the ABMI plays in enhancing the resilience of the region’s financial system, including promoting the use of local currency financing as a means to manage the heightened volatility in global markets. On that note, we welcome the completion of the ADB’s study on promoting local currency-denominated green bonds for infrastructure development and the publication of the report. We encourage efforts to promote the local currency-denominated green bonds to meet the region’s infrastructure needs. We also welcome the revamp of Asian Bonds Online (ABO), a globally recognized flagship information source of the region’s bond markets, to improve its usability and database as planned in the ABMI Medium-Term Road Map.
We welcome the approval of the Credit Guarantee and Investment Facility’s (CGIF) Medium-term Business Strategy and the Capital Increase Proposal (CIP), which allows for the CGIF’s authorized capital to increase from US$700 million to US$1.2 billion. We further welcome the early contributions by Japan, the Philippines and Singapore, and encourage other contributors to complete their contributions according to schedule.
We recognize that sharing ASEAN+3’s experiences and good practices in developing local currency bond markets with other regions will contribute to a global discussion to improve the resilience of the economy and financial systems, which was highlighted by G20. In this regard, we welcome the General Principles for participation of non-ASEAN+3 countries as observers in the ASEAN+3 Bond Market Forum (ABMF) as approved by the Deputies. We are also pleased with Mongolia’s participation in ABMF as an observer in line with the appropriate procedure under the General Principles. We also welcome the efforts in updating “Good Practices in Developing Bond Market”, which includes corporate bond market, in addition to ASEAN government bond market.
We are pleased with the publication by the Cross-Border Settlement Infrastructure Forum (CSIF) of the common understanding on cross-border Business Continuity Plan (BCP) and cyber security, which are essential for creating safe linkages among Central Securities Depository-Real Time Gross Settlement (CSD-RTGS) systems. We welcome the decision to develop this CSD-RTGS linkage between the Bank of Japan (BOJ) and the Hong Kong Monetary Authority (HKMA) towards implementation around the spring of 2021, which will contribute to the reduction of the settlement risk for cross-border and cross-currency repo transactions. We look forward to further cross-border bond issuances under the ASEAN+3 Multi-currency Bond Issuance Framework (AMBIF) and the continuous capacity-building under the Technical Assistance Coordination Team (TACT) in better preparing the development of the bond markets in recipient countries.
ASEAN+3 Financial Cooperation in Disaster Risk Financing and Insurance
We reaffirm our commitment to increase the financial resilience of ASEAN+3 members to climate and disaster risks. We welcome the agreement to establish a regional catastrophe risk insurance pool for Lao PDR and Myanmar as the first product of the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), with support from Japan, Singapore and the World Bank. We also recognize that Cambodia may join the regional catastrophe risk insurance pool, subject to the result of the feasibility studies. We acknowledge that SEADRIF, which will be domiciled in Singapore, aims to provide climate and disaster risk management and insurance solutions to ASEAN member states, and helps to narrow the natural catastrophe protection gap within the region. We welcome the ASEAN Disaster Risk Financing and Insurance Program (ADRFI) to work and collaborate with SEADRIF on some issues, including data assessment and modeling, and capacity building. We invite other ASEAN+3 members to join the SEADRIF, and encourage donor partners beyond ASEAN+3 to support this initiative.
IV. Conclusion
We expressed our appreciation to the governments of Singapore and Korea for their excellent arrangements as the co-chairs of the ASEAN+3 Finance Ministers’ and Central Bank Governors’ Process in 2018. We also thank the Philippines for its warm hospitality in Manila.
We agreed to meet in Nadi, Fiji in 2019. Thailand and China will be the co-chairs of the ASEAN+3 Finance Ministers’ and Central Bank Governors’ Process in 2019.
18th Trilateral Finance Ministers and Central Bank Governors' Meeting Joint Message
Ministry of Finance, Friday, May 4, 2018
We, Finance Ministers and Central Bank Governors of China, Japan and Korea, held the 18th trilateral meeting in Manila, Philippine, under the chairmanship of H.E. Taro Aso, Deputy Prime Minister and Minister of Finance, Japan, and exchanged views on the latest developments in the global economy and regional financial cooperation.
We discussed current economic developments and potential risk factors in financial markets and underlying economic conditions. We recognize that the ASEAN+3 region contribute to the improving global economic outlook, with sustained economic growth amid stable inflation. Nevertheless, we remain vigilant against downside risks that may threaten the recovery in the global economy. We noted the risks posed by rising trade protectionism, faster-than-expected tightening in global financial conditions, and uncertainty of geopolitical tensions. In this regard, we welcome the Panmunjeom Declaration agreed between the leaders of South and North Korea on April 27, 2018 and look forward to further progress in easing geopolitical tension in the region. We stressed the importance of resisting all forms of protectionism, ensuring an open and rule-based multilateral trade and investment system, and of strengthening resilience against external shocks, and agree to further enhance communication and coordination among China, Japan and Korea.
We welcome the successful progress of the first Chiang Mai Initiative Multilateralisation (CMIM) Periodic Review, which contributes to stronger CMIM as a regional financial safety net by reinforcing the financial support and establishing a better coordination process with the IMF to facilitate co-financing. In addition, we further welcome the continued work of our Deputies to further enhance the operational readiness of the CMIM including updating the CMIM Operational Guidelines (OG), and conducting further test runs, jointly with the IMF. We acknowledge the progress made in improving the qualification criteria for the CMIM Precautionary Line. We look forward to the 9th CMIM test run in 2018 jointly with the IMF and welcome the progress made in developing the CMIM Conditionality Framework.
We acknowledge continued efforts by ASEAN+3 Macroeconomic Research Office (AMRO) to evolve into a full-fledged international organization by strengthening its capacity for regional macroeconomic surveillance, CMIM support and technical assistance. We also commend AMRO for its progress to establish and expand regional and global partnership, such as through the signing of Memorandums of Understanding with the IMF and European Stability Mechanism (ESM), and AMRO’s attainment of UN Permanent Observer status. We reaffirm our strong support for AMRO to further enhance its surveillance and organizational capacity to fulfill its mandate as an independent, credible and professional international organization.
We note that Asian Bond Markets Initiative (ABMI) has made significant advance in a number of areas. In particular, we welcome the decision on capital increase of the Credit Guarantee and Investment Facility (CGIF) by its contributors in December 2017. And we are pleased with the publication of the study report on promoting local currency-denominated green bonds for infrastructure development to meet the region’s infrastructure needs. We welcome the decision to develop this Central Securities Depository-Real Time Gross Settlement (CSD-RTGS) linkage between the Bank of Japan(BOJ) and the Hong Kong Monetary Authority(HKMA) toward implementation around the spring of 2021, which will contribute to the reduction of the settlement risk for cross-border and cross-currency repo transactions. We are pleased with the approval of General Principles for the participation of non-ASEAN+3 country as observer in ASEAN+3 Bond Market Forum (ABMF) by the Deputies meeting in Singapore in April 2018, as well as the efforts in updating“Good Practices in Developing Bond Market.
We welcome the agreement of Japan, Lao PDR, Myanmar and Singapore to establish a regional catastrophe risk pool as a first product of the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), which aims to provide ASEAN countries with climate and disaster risk insurance solutions, with technical support from the World Bank.
We appreciate Korea and Singapore's leadership as the co-chairs of ASEAN+3 Finance Ministers and Central Bank Governors Meeting in 2018. In addition, we agree to support China and Thailand to chair the 22nd ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting to be held in May 2019.
We will cooperate to ensure the success of the 7th Trilateral Summit to be held on May 9, 2018, and believe that the Summit will provide a momentum to further solidify our close relationship in regional financial cooperation.
We believe that the Trilateral Finance Ministers and Central Bank Governors' Meeting will serve as an effective platform for enhanced policy dialogue and coordination, and decided to meet again in Nadi, Fiji in May 2019.
Signing of Japanese ODA Loan Agreements with Iraq: Contributing to reconstruction through the provision and repair of water and irrigation facilities
JICA, Monday, May 7, 2018
On May 3, the Japan International Cooperation Agency (JICA) signed loan agreements with the Government of the Republic of Iraq in Baghdad to provide Japanese ODA loans of up to a total of 34.88 billion yen for two projects.
The impact of three conflicts and many years of economic sanctions since the 1980s plus the expansion of extremist groups since the end of 2013 have led to the degradation and destruction of power, water and other basic infrastructure, and there are massive reconstruction needs. In response, the Government of Japan announced at the International Conference for Reconstruction of Iraq held in Kuwait in February 2018 that the Government of Japan would continue providing support for reconstruction in Iraq through Japanese ODA loans in the power, water, oil and other sectors, including projects currently under implementation. The support for these two projects with these Japanese ODA loans constitutes a portion of the measures by the Government of Japan for such Iraq reconstruction in the international community.
Over the past 10 years, JICA has provided technical cooperation and support exceeding 600 billion yen in Japanese ODA loans for socioeconomic infrastructure. These Japanese ODA loans will provide economic reconstruction and living environment improvements through the provision of basic infrastructure for water resources, which will contribute to mid- to long-term economic stability, reconstruction in Iraq, and peace building.
A summary of the two Japanese ODA projects provided by the loan agreements is as follows:
(1) Basrah Water Supply Improvement Project (II) (loan amount: 19.415 billion yen)
(2) Irrigation Sector Loan (Phase 2) (loan amount: 15.465 billion yen)
Details for the projects are provided below.
(1) Basrah Water Supply Improvement Project (II)
(a) Objective and Summary
The project will provide water supply facilities, including a water treatment plant and a water distribution network, in Basrah and Hartha in Basrah Governorate in southern Iraq, thereby improving the water supply in both cities.
(b) Background and Necessity
Water resources in Iraq are greatly dependent on the Tigris and Euphrates Rivers which flow through the country from the northwest to the southeast, but due to the impact of multiple conflicts and many years of economic sanctions, the existing water facilities have not been updated or adequately maintained, and the functionality of the water system has decreased significantly. Although subsequent reconstruction measures have achieved a water service coverage ratio of 90 percent in Basrah and Hartha (total population of approximately 1.47 million people) as of 2017, inadequate equipment, degradation of existing water treatment plants and other factors have resulted in inadequate water system functionality and approximately 10 percent of households receive water supply fewer than 12 hours a day. In southern Iraq in particular, the level of salt concentration in the river water sources is significantly high, existing water treatment plants have degraded and there is inadequate equipment such that the quality of the water supply greatly diverges from international standards, and many residents must purchase expensive water for drinking from private companies. Although security in the area is relatively stable and is a key region for industrial development in Iraq, inadequate power and the inability to provide a stable supply of water suitable for drinking are critical challenges that could give rise to social unrest, and therefore providing water supply facilities for a stable supply of high-quality water is a priority.
A Japanese ODA loan (signed in June 2008 for up to 42.969 billion yen) was provided for stage I of this project, and this loan is for stage II.
(c) Executing Agency
Ministry of Municipalities and Public Works (MMPW)
Address: MMPW Building, Baghdad, Republic of Iraq
(d) Planned Implementation Schedule
1. Completion of project: August 2020 – when the facilities are put into service
2. Issuing of letters of invitation for consulting services (including construction supervision): Consultants have already been hired
Tender announcement of initial procurement package for international competitive bidding on project construction: Construction of Transmission System
Release date: February 2018 (already released)
(2) Irrigation Sector Loan (Phase 2)
(a) Objective and Summary
The project will construct and rehabilitate irrigation and drainage facility and agricultural land mainly in the Tigris-Euphrates River Basin to improve agricultural productivity, thereby contributing to socioeconomic reconstruction in Iraq.
(b) Background and Necessity
The agricultural sector in Iraq is a key industry accounting for nearly 10 percent of the gross domestic product, and is expected to provide promising employment particularly in agricultural regions in Iraq where unemployment is severe. Most of the land in Iraq has a desert climate with an annual rainfall of less than 250 millimeters and many regions have inadequate irrigated agriculture. Due to water leaks caused by degradation in the irrigation facilities, inadequate water due to the arid summer, accumulated salt in agricultural land due to a lack of drainage channels and other factors, agricultural productivity remains low. Further, as a result of water resource development in nearby countries in recent years, the flow volume of the Tigris and Euphrates Rivers has decreased, reducing the amount of water available in Iraq, and consequently the improvement of agricultural productivity and the expansion of irrigated agriculture through the efficient use of water resources and the provision and repair of irrigation and drainage facilities are priorities particularly in the central and southern parts of Iraq, which are the lower basin of the Tigris and Euphrates Rivers.
(c) Executing Agency
Ministry of Water Resources (MOWR)
Address: MOWR Building, Baghdad, Republic of Iraq
(d) Planned Implementation Schedule
1. Completion of project: March 2025 – when all of the facilities are put into service
2. Issuing of letters of invitation for consulting services (including construction supervision): August 2018
3. Tender announcement of initial procurement package for international competitive bidding on project construction: Construction of Irrigation and Drainage Network
Release date: March 2019
Internet Buying Boom: METI Releases Results of FY2017 E-Commerce Market Survey
METI, Wednesday, April 25, 2018
The Ministry of Economy, Trade and Industry (METI) conducted the FY2017 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey) to analyze the current state of the Japanese e-commerce (EC) market and the market trends in cross-border EC among three countries – Japan, the U.S., and China – and compiled the results into a report.
Summary of the survey results
1. Scale of the domestic EC market (business-to-consumer (B-to-C) and business-to-business (B-to-B))
In 2017, the scale of the domestic B-to-C EC market expanded to 16.5 trillion yen (up by 9.1% from 15.1 trillion yen in the previous year). The scale of the domestic B-to-B EC market expanded in the same year to 317.2 trillion yen (up by 9.0% from 291.0 trillion yen in the previous year).
The EC ratio* was 5.79% (up by 0.36 percentage points from the previous year) for B-to-C EC, while it was 29.6% (up by 1.3 percentage points from the previous year) for B-to-B EC. The survey results show continuous progress in the computerization of commercial transactions.
2. Scale of the domestic EC market (consumer to consumer (C-to-C))
In recent years, the C-to-C EC market has been dramatically expanding as an EC channel. In light of this trend, METI has been estimating the scale of the market in Japan since the 2016 survey. In the 2017 survey, the results revealed that the scale of the internet auction market in 2017 was estimated to be 1,120.0 billion yen (up by 3.2% from 1,084.9 billion yen in the previous year), the C-to-C scale of which was estimated to be 356.9 billion yen (up by 3.2% from 345.8 billion yen in the previous year).
The scale of the EC market via flea market applications was estimated to be 483.5 billion yen (up by 58.4% from 305.2 billion yen in the previous year), showing a sharp increase. This revealed that a giant market with a scale of lower-500.0 billion yen has emerged in Japan just five years since the entry of flea market applications into the market in 2012.
3. Market scale of cross-border EC among Japan, the U.S. and China
In 2017, the market scale of cross-border EC among Japan, the U.S. and China, increased in all countries. In particular, the amount purchased through cross-border EC by Chinese consumers from Japanese business operators was 1,297.8 billion yen (up by 25.2% from 1,036.6 billion yen in the previous year), and that from U.S. business operators was 1,457.8 billion yen (up by 28.2% from 1,137.1 billion yen in the previous year), showing an outstanding expansion of the amount purchased through cross-border EC by Chinese consumers.
Outline of the E-Commerce Market Survey
Since FY1998, this survey has been conducted every year, aiming to discover trends in the EC market and the current state of users. This was the 20th survey.
The FY2017 survey investigated the current state of the domestic market scale of B-to-C EC, B-to-B EC and C-to-C EC, as well as the market trends in B-to-C cross-border EC (among Japan, the U.S., and China).
*Note: The EC ratio in this survey refers to the ratio of the e-commerce market scale to the total amount of overall commercial transactions. The subjects for calculating the EC ratio for B-to-C EC and B-to-B EC are selected respectively from merchandising businesses and business types except “others” in an industrial classification system.
