Japan’s Policy towards the WTO Reform

As the third largest economy in the world and a major beneficiary of the multilateral free trade system, Japan has adopted a two-track strategy toward WTO reform. While working with the EU and the US to improve the standards of existing international trade rules, it is also maximizing its interests to dominate the highstandard direction of mega-ftas through bilateral and regional agreements.

In the face of an unprecedented survival crisis, reform of the World Trade Organization (WTO) is more imperative than ever before. On the one hand, the WTO’S authority has been seriously threatened. Since he took office, US President Donald Trump has paid no heed to WTO rules. He has launched frequent trade offensives against other countries based on US “domestic law,” and even threatened to withdraw from the WTO at any time if the reform does not satisfy him. On the other hand, the appellate function to ensure the smooth operation of the WTO is almost lost. If reform cannot be carried out in a timely manner, by the end of 2019, the WTO dispute settlement mechanism may exist in name only. In addition, the fairness and efficiency of the WTO has constantly triggered controversies. In particular, the long-stalled Doha round of negotiations has seriously affected the cohesiveness and leadership of the WTO. As the third largest economy in the world and one of the biggest beneficiaries of the multilateral free trade system, Japan’s position and propositions for WTO reform deserve attention. Exploring Japan’s policy in this regard has important practical significance for judging the prospects of the WTO reform.

Japan’s Free Trade Policy

In the historical process after World War II, maintaining the multilateral trading system has always been the cornerstone of Japan’s free trade policy.

Ni Yueju is Senior Research Fellow and Deputy Director at the Research Center for World Economic History, Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS).