Japan-Australia Summit Telephone Talk
Foreign Affairs, Tuesday, March 6, 2018
On March 6, commencing at 9:10 a.m. for approximately 20 minutes, Mr. Shinzo Abe, Prime Minister of Japan, held a telephone talk with the Hon. Malcolm Turnbull, MP, Prime Minister of Australia. The overview of the telephone talk is as follows.
1 At the beginning, Prime Minister Abe made a statement welcoming the fact that momentum toward the realization of a free and open Indo-Pacific has been strengthened through the recent efforts including the visits of Prime Minister Turnbull to Japan and the United States.
2 The two leaders held an exchange of views on matters related to trade, including the TPP and the investigation on imports of steel and aluminum under Section 232 of the U.S. Trade Expansion Act, and confirmed that they would continue to communicate with each other closely.
Signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Foreign Affairs, Friday, March 9, 2018
1. On March 8, Mr. Toshimitsu Motegi, Minister of State for Economic and Fiscal Policy, who was dispatched as the special envoy of the Government of Japan, signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership along with representatives from the other 10 participating countries, in Santiago, Chile.
2. This agreement has substantial strategic significance because it will maintain the high-level content of the TPP Agreement which promotes the liberalization of trade in goods and services and the liberalization and facilitation of investment in the Asia-Pacific region, where there has been remarkable growth, and establishes new 21st century rules in a wide range of areas, such as intellectual property, electronic commerce, state-owned enterprises, and the environment while creating the foundation for further expanding a free and fair economic order in the region.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership Ministerial Statement (PDF in the linked page)
U.S. decision of import restriction measures on steel and aluminum products based on Section 232 of the Trade Expansion Act
(Statement by Foreign Minister Taro Kono)
Foreign Affairs, Friday, March 9, 2018
1. It is regrettable that the President of the United States has decided on import restriction measures to raise the tariff on steel and aluminum products imported from all countries except Canada and Mexico, based on Section 232 of the Trade Expansion Act of 1962, on March 9 (March 8 local time), on the ground that importing steel products and refined and unrefined aluminum into the U.S. has the risk to impair the national security of the U.S.
2. These measures could make a significant impact on the economic and cooperative relationship between Japan and the U.S., who are allies, as well as the world economy. Japan will appropriately address this issue upon careful scrutinization of the impact on Japanese companies and the relationship with the WTO Agreement.
Press Occasion on the Work Style Reform Bills and Other Matters
Cabinet Secretariat, Thursday, March 1, 2018
[Provisional Translation]
On March 1, 2018, Prime Minister Shinzo Abe held a press occasion at the Prime Minister’s Office.
Regarding the work style reform bills and other matters, the Prime Minister said,
“I have stated that the early passage of the budget is itself the most important measure for stimulating the economy. Deliberations in the House of Councillors are set to begin from tomorrow. We will take firm steps to facilitate the passage of the budget as soon as possible.
By advancing work style reform, we will enable flexible working styles. This will allow people faced with various circumstances, such as those engaged in child rearing or nursing care, to lead fulfilling lives and work with a sense of purpose. That is the kind of Japan I wish to create. I intend to carry out the necessary reforms for doing so at the current session of the Diet.
In advancing these efforts, however, we have ended up creating doubt among the people in relation to data on the discretionary working system. In response, I have instructed that we completely remove all items related to the discretionary working system from the bills we will submit to this session of the Diet. I have decided that we will reopen discussions once the Ministry of Health, Labour, and Welfare has a firm grasp of the situation. Nevertheless, work style reform is extremely important. In the present set of reform bills, we intend to limit the maximum hours of overtime work permitted, with penalties attached, so as to eliminate the custom of working long and excessive hours. Furthermore, we plan to realize equal pay for equal work, in order to eradicate the disparities between regular and non-regular employment. Finally, we also intend to introduce a “high-level professionals” system. We would like to propose a set of draft bills covering these three elements. Our aim is to submit bills related to these three pillars, which are separate from the matter of the discretionary working system.
In the current session of the Diet, we intend to thoroughly ensure the passage of the work style reform bills. During this Diet session, we hope to make progress on the issue of work style reform, which is one of the greatest challenges that Abenomics takes on.”
In addition, the Prime Minister said,
“Regarding these three pillars, after removing the relevant items, we will first complete the necessary procedures within the ruling parties, before making a Cabinet decision and submitting the bills.”
Courtesy Call from the Japanese American Leadership Delegation
Cabinet Secretariat, Monday, March 5, 2018
[Provisional Translation]
On March 5, 2018, Prime Minister Shinzo Abe received a courtesy call from the Japanese American Leadership Delegation at the Prime Minister's Office.
The Prime Minister said in his address,
“Welcome to the Prime Minister’s Office. I am delighted to welcome all of you who are active as leaders in a variety of fields all over the United States. I would like to again express my gratitude to Ms. Irene Hirano Inouye, President of the U.S.-Japan Council, for her constant hard work for the strengthening of relations between Japanese-Americans and Japan.
I would like to apologize for starting this meeting a little late. Punctuality is one of the virtues of Japanese people. Unfortunately, deliberations in the Diet are not punctual. I arrived at the Diet this morning at 9 a.m. We were scheduled to end at 5 p.m., but unfortunately it lasted about 30 minutes longer. This is one part of democracy, so I hope you will forgive me.
This year marks the 150th anniversary of the arrival in Hawaii of the first organized group of Japanese immigrants. Japanese-Americans have overcome many obstacles and earned trust and respect in the United States, which is the foundation of our robust Japan-U.S. Alliance.
During your last visit, I requested that you absolutely pay a visit to my home prefecture of Yamaguchi. I am delighted to see how quickly that request has been realized. I have heard your visit will include one to Shoin Jinja Shrine in Hagi City. This year is the 150th anniversary of the start of the Meiji period. Hagi City is the place where the Meiji Restoration started, and I hope that you will feel that spirit for yourself. Many people from Suo-oshima Town immigrated to Hawaii, including one of my relatives. Actually, in the summer in this Oshima Town, everyone in the town government and town council wears Hawaiian shirts. It is a place where the charms of old Japan remain. I hope that this trip will truly bring you closer to Japan, and that you will all continue to be tremendously active as bridges between Japan and Hawaii, and Japan and the United States. Thank you.”
Video titled "The Next Step - Towards Fukushima's Future, Together" to be Produced
Cabinet Secretariat, Thursday, March 1, 2018
The Ministry of Economy, Trade and Industry (METI) has prepared a PR video titled "The Next Step - Towards Fukushima's Future, Together" and preleased it on YouTube METI-Channel on March 1, 2018. The video aims to convey to the public the current situation of reconstruction of Fukushima Prefecture, devastated by the Great East Japan Earthquake and the accident at the TEPCO Fukushima Daiichi Nuclear Power Station, in particular, concerning 12 municipalities severely devastated, namely Iidate Village, Okuma Town, Katsurao Village, Kawauchi Village, Kawamata Town, Tamura City, Tomioka Town, Namie Town, Naraha Town, Hirono Town, Futaba Town, and Minamisoma City.
1. Outline and purpose of the video
On March 11, 2011, the Great East Earthquake and the accident at the TEPCO Fukushima Daiichi Nuclear Power Station occurred. After that, Japan has been accelerating a variety of efforts to reconstruct these devastated areas in Fukushima Prefecture, including lifting of the evacuation orders, reconstruction of businesses and livelihood, and promotion of the Fukushima Innovation Coast Scheme. Moreover, it has also been securing the implementation of efforts for removing negative effects on products in local communities due to harmful reputations.
Through releasing the movie, METI will strive to convey the current situation of reconstruction of Fukushima as well as efforts for inviting new industries to the prefecture and removing such negative effects to a broad range of people inside and outside Japan, thereby promoting public understanding of Fukushima.
2. Details of the video clip and other information
The well-organized video will explain the current situation of Fukushima, mainly about the 12 municipalities, including footage of a ceremony for lifting the evacuation orders in the spring of 2016 and other events, as well as Japan's efforts for reconstructing people's everyday lives, businesses and livelihood, and the promotion of the Fukushima Innovation Coast Scheme.
Note: A digest version of the video titled "Welcome home, Fukushima" was released on February 9, 2018.
Websites on which the movie has been posted:
METI official YouTube channel: metichannel
METI website for explaining support initiatives for reconstructing industries in Fukushima (in Japanese)
Released movie
The Next Step - Towards Fukushima’s Future, Together
Reference：A digest version of the movie
Welcome home, Fukushima (already released on February 9, 2018)
Release date
March 1, 2018
Division in Charge
Fukushima Public Relations Strategy and Reputational Management Office, Fukushima Reconstruction Promotion Group
Prime Minister Abe Receives a Courtesy Call from the Vice President of the Republic of Zimbabwe
Foreign Affairs, Tuesday, March 6, 2018
On March 6, commencing at 9:55 a.m. for approximately 20 minutes, Mr. Shinzo Abe, Prime Minister of Japan, received a courtesy call from Hon. Kembo Mohadi, Vice President of the Republic of Zimbabwe. The overview is as follows:
1 Prime Minister Abe welcomed the visit by Vice President Mohadi to Japan and expressed his expectation that democracy and economic development progress under the leadership of President Mnangagwa and that this year's general election be held in a free, fair and peaceful manner. Prime Minister Abe stated that Japan will support Zimbabwe's efforts towards this end.
2 Vice President Mohadi, upon delivering a letter from President Mnangagwa to Prime Minister Abe, expressed his gratitude toward Japan's assistance and stated that he wishes to further strengthen the friendly relationship with Japan built since Zimbabwe's independence in 1980 and that Zimbabwe will conduct this year's election in a free, fair, peaceful and credible manner.
3 They exchanged views on the situation in North Korea and Vice President Mohadi stated that Zimbabwe will respect United Nations Security Council Resolutions and will firmly address North Korea's threat.
4 They also shared the view on the importance of advancing economic reform to promote private investment for the development and prosperity of Zimbabwe.
Foreign Minister Kono Pays a Courtsey Call on Hon. Kembo Mohadi, Vice President of the Republic of Zimbabwe
Foreign Affairs, Tuesday, March 6, 2018
On March 6, commencing at 1:10 p.m. for approximately 30 minutes, Mr. Taro Kono, Minister for Foreign Affairs, paid a courtesy call on Hon. Kembo Mohadi, Vice President of the Republic of Zimbabwe. The overview is as follows.
Minister Kono welcomed the visit by Vice President Mohadi to Japan and expressed his expectation that democracy and economic development will progress in Zimbabwe under the leadership of President Mnangagwa and stated that Japan is willing to continue supporting Zimbabwe’s efforts to realize these goals and to strengthen the friendly and cooperative relations between the two countries. Minister Kono also stated that he expects to see this year’s election lead to strengthening of the rule of law in Zimbabwe and of mutual trust between Zimbabwe and the international community, and that Japan is providing assistance for voter registration process and voter education campaign for the upcoming election.
Vice President Mohadi stated that he had delivered Prime Minister Abe a letter from President Mnangagwa earlier that day and expressed his hope to further strengthen the friendly relationship between Japan developed over the years. He also stated that Zimbabwe will conduct this year’s election in a free, fair, peaceful and credible manner, and that since the inauguration of President Mnangagwa, the government of Zimbabwe is carrying out various reforms to promote private investment which as a result has opened the business opportunity in Zimbabwe.
They exchanged views on regional affairs including the situation in North Korea and on cooperation in the international arena including the United Nations Security Council reform.
Foreign Minister Kono receives a courtesy call from Minister Ghunaim, Head of Palestinian Water Authority
Foreign Affairs, Tuesday, March 6, 2018
On 6th of March, from 1415 to 1435, Mr. Taro Kono, Minister for Foreign Affairs, received a courtesy call from H.E. Minister Mazin Ghunaim, Head of Palestinian Water Authority. The overview is as follows.
1 In the beginning, Minister Kono welcomed Minister Ghunaim’s visit to Japan. Minister Kono, looking back to his visit to Palestine last December, mentioned that he would like to strengthen Japan- Palestine relationship which is getting closer and closer in recent years. In addition, with regards to the development of Jericho Agro-Industrial Park (JAIP), a flagship project for the “Corridor for Peace and Prosperity” Initiative, Minister Kono extended his appreciation to Minister Ghunaim’s cooperation so far, and asked for continued cooperation.
2 After that, Minister Ghunaim, showing his appreciation to Japan’s assistance to Palestine, explained the serious humanitarian situation in Gaza and asked for Japan’s support for the water issue, which makes a pressing crisis in the area.
3 In reply, Minister Kono expressed his concern about the critical humanitarian situation in Gaza, and stressed that Japan will continue to provide assistance for better lives of people, explaining Japan’s assistance so far including those dedicated to the area of water.
Second Meeting of the Japan-Russia High-Level Working Group for Realizing the Eight-Point Cooperation Plan Held
METI, Thursday, February 22, 2018
On February 22 (Thur.), 2018, Mr. Hiroshige Seko, Minister of Economy, Trade and Industry and Minister for Economic Cooperation with Russia, and H.E. Mr. Maksim Stanislavovich Oreshkin, Minister of Economic Development and Special Representative for Trade and Economic Cooperation with Japan of the Russian Federation, held the second meeting of the Japan-Russia High-Level Working Group for Realizing the Eight-Point Cooperation Plan in Tokyo. Prior to this, Minister Seko and H.E. Mr. Alexandr Valentinovich Novak, Minister of Energy, Russia, held the fifth meeting of the Japan-Russia Energy Initiative Council.
1. Second meeting of the Japan-Russia High-Level Working Group for Realizing the Eight-Point Cooperation Plan
Minister Seko and Minister Oreshkin held the second meeting of the Japan-Russia High-Level Working Group for Realizing the Eight-Point Cooperation Plan in Tokyo.
The meeting also brought together Mr. Kotaro Nogami, Deputy Chief Cabinet Secretary, Mr. Eiichi Hasegawa, Special Advisor to the Prime Minister, and other vice-minister level officials from related ministries and agencies of Japan, as well as Minister Novak and other vice-minister level officials from related ministries and agencies of Russia.
In the beginning of the meeting, Minister Seko expressed his condolences to victims of a private aircraft crash that occurred in the suburbs of Moscow on February 11, 2018. Following this, he pointed out that the eight-point corporation plan, which had been offered from Prime Minister Abe to President Putin, is a significant foundation of the Japan-Russia relationship and also stated that Japan intends to discuss with Russia the overall progress made in the plan so as to bring about maximum achievements.
Moreover, Deputy Chief Cabinet Secretary Nogami mentioned the results of the Public-Private Coordination Meeting for Promoting Japan-Russia Relationship, held at the Prime Minister’s Office in Tokyo on February 20, 2018, and stated Japan’s intention to enhance Japan-Russia economic ties by uniting all public-private efforts in both countries.
In response, Minister Oreshkin positively appraised the efforts by Japan and Russia to specify the plan and showed his expectations for further development of Japan-Russia economic ties, including improvement of labor productivity and the field of digital economy on which Russia places emphasis. Following this, Minister Novak showed his expectations for further enriched cooperation in the field of energy.
As a result of this meeting, both sides agreed that Japan and Russia will continue to cooperate in further developing bilateral economic ties, including efforts for further specifying the plan, bearing in mind Prime Minister Abe’s visit to Russia expected in May 2018.
2. Fifth meeting of Japan-Russia Energy Initiative Council
Minister Seko and Minister Novak held the fifth meeting of the Japan-Russia Energy Initiative Council. Both sides confirmed the specific cooperation projects in the fields of hydrocarbon, nuclear energy, renewable energy and energy efficiency and held discussions concerning further promotion of these projects in the future.
Release date
February 22, 2018
Division in Charge
Russia, Central Asia and Caucasus Office, Europe Division, Trade Policy Bureau, METI
International Affairs Division, Agency for Natural Resources and Energy
Signing of the first Japanese ODA Loan Agreement with Burkina Faso: Enhancing a regional transportation network through improvement to an international corridor connecting West African countries
JICA, Monday, March 5, 2018
On March 2, the Japan International Cooperation Agency (JICA) signed its first loan agreement with the Government of Burkina Faso in Ouagadougou, the capital city, to provide a Japanese ODA loan of up to 5.659 billion yen for the Gounghin – Fada N’Gourma Road Improvement Project.
The project will pave and widen the Gounghin – Fada N’Gourma section (approximately 50 kilometers in length) of national road on the international corridor (approximately 217 kilometers in length) running from Gounghin in eastern Burkina Faso to the border with Niger. The objective of the project is to make the transportation network more efficient, thereby contributing to poverty reduction and economic development in the targeted areas, as well as to the regional integration in the West African Economic and Monetary Union (WAEMU)*. The loan funds will be allocated to civil works for the target road section. The project will be co-financed by the African Development Bank (AfDB).
In the East and Centre-East Regions of Burkina Faso where the target road of the project runs, most inhabitants work in the agriculture, forestry and farming industries, and among the crops grown are cotton, sesame, onions and tomatoes. Raw cotton, one of the major exports of Burkina Faso, is transported to cotton plants in Fada N’Gourma and Ouagadougou for processing, after which it is exported from international ports in the West African coast countries. However, the national road reaching Ouagadougou, including the road section between Gounghin and Fada N’Gourma, has not undergone any significant rehabilitation since the 1980s, and the pavement is in an advanced state of degradation, which hinders traffic and the transportation of agricultural products. The target road is a key transportation route as it is positioned a key location on the international corridor that connects Ouagadougou to Niamey, the capital city of Niger to the east, as well as Ouagadougou to Cotonou, the capital city of Benin, to the south. The transportation demand along the target road has grown over the years and is projected to continue increasing, making it urgent to improve the road condition by paving and lane widening. Therefore, delays in improvements to the road infrastructure in the target area are a regional concern hampering economic development not only in Burkina Faso but also in Niger, a landlocked country. For this reason, the AfDB and the European Union (EU) are also supporting infrastructure development on the international corridor.
In addition to this project, JICA is implementing cooperation such as the Project on the Corridor Development for West Africa Growth Ring Master Plan (2015–2018), and the Project for Improvement of the southeastern Tansoba bypass in Ouagadougou (grant agreement signed in August 2017), with the aim of enhancing connectivity and promoting local industrial activities by improving transportation infrastructure in the landlocked and coastal countries of West Africa. Through such projects, JICA will continue to contribute to the economic development of Burkina Faso and the regional integration of West Africa.
* WAEMU (UEMOA in French) is a regional economic community comprising eight West African member countries: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
1. Terms and Amount of Loan (refer to the linked page)
2. Executing Agency
Ministry of Infrastructure
Address: 35, Avenue Pr. Joseph Ki-Zerbo, Building LAMIZANA, Ouagadougou, Burkina Faso
Phone: +226-25-30-28-65, fax: N/A
3. Planned Implementation Schedule
(1) Completion of project: November 2020 – when all of the facilities are put into service
(2) Issuing of letters of invitation for consulting services: Not applicable for this loan. Consulting services will be provided through financing from the AfDB.
(3) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Civil Works
Release date: February 2018 (already released)
Statement on Monetary Policy
Bank of Japan, Friday, March 9, 2018
1. At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided upon the following.
(1) Yield curve control
The Bank decided, by an 8-1 majority vote, to set the following guideline for market operations for the intermeeting period.[Note 1]
The short-term policy interest rate:
The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank.
The long-term interest rate:
The Bank will purchase Japanese government bonds (JGBs) so that 10-year JGB yields will remain at around zero percent. With regard to the amount of JGBs to be purchased, the Bank will conduct purchases at more or less the current pace -- an annual pace of increase in the amount outstanding of its JGB holdings of about 80 trillion yen -- aiming to achieve the target level of the long-term interest rate specified by the guideline.
(2) Guidelines for asset purchases
With regard to asset purchases other than JGB purchases, the Bank decided, by a unanimous vote, to set the following guidelines.
a) The Bank will purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) so that their amounts outstanding will increase at annual paces of about 6 trillion yen and about 90 billion yen, respectively.
b) As for CP and corporate bonds, the Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen, respectively.
2. Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating. Overseas economies have continued to grow firmly on the whole. In this situation, exports have been on an increasing trend. On the domestic demand side, business fixed investment has continued on an increasing trend with corporate profits and business
sentiment improving. Private consumption has been increasing moderately, albeit with fluctuations, against the background of steady improvement in the employment and income situation. Housing investment has been weakening somewhat. Meanwhile, public investment has been more or less flat, remaining at a relatively high level. Reflecting these increases in demand both at home and abroad, industrial production has been on an increasing trend, and labor market conditions have continued to tighten steadily. Financial conditions are highly accommodative. On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) is around 1 percent. Inflation expectations have been more or less unchanged.
3. With regard to the outlook, Japan's economy is likely to continue its moderate expansion. Domestic demand is likely to follow an uptrend, with a virtuous cycle from income to spending being maintained in both the corporate and household sectors, on the back of highly accommodative financial conditions and underpinnings through the government's past stimulus measures. Exports are expected to continue their moderate increasing trend on the back of the firm growth in overseas economies. The year-on-year rate of change in the CPI is likely to continue on an uptrend and increase toward 2 percent, mainly on the back of an improvement in the output gap and a rise in medium- to long-term inflation expectations.[Note 2]
4. Risks to the outlook include the following: the U.S. economic policies and their impact on
global financial markets; developments in emerging and commodity-exporting economies; negotiations on the United Kingdom's exit from the European Union (EU) and their effects; and geopolitical risks.
5. The Bank will continue with "Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control," aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will continue expanding the monetary base until the year-on-year rate of increase in the observed CPI (all items less fresh food) exceeds 2 percent and stays above the target in a stable manner. The Bank will make policy adjustments as appropriate, taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target.[Note 3]
[Note 1] Voting for the action: Mr. H. Kuroda, Mr. K. Iwata, Mr. H. Nakaso, Mr. Y. Harada, Mr. Y. Funo, Mr. M. Sakurai, Ms. T. Masai, and Mr. H. Suzuki. Voting against the action: Mr. G. Kataoka. Mr. G. Kataoka dissented, considering that, taking account of risk factors such as the consumption tax hike and a possible economic downturn in the United States, it was desirable to achieve the price stability target in fiscal 2018, and that it was appropriate for the Bank to purchase JGBs so that yields on JGBs with maturities of 10 years and longer would broadly be lowered further.
[Note 2] Mr. G. Kataoka opposed the description, considering that the possibility of the year-on-year rate of change in the CPI increasing toward 2 percent going forward was low at this point.
[Note 3] With a view to reinforcing the inflation-overshooting commitment, Mr. G. Kataoka opposed the description, considering that, if there was a delay in the timing of achieving the price stability target due to domestic factors, the Bank should take additional easing measures and that it was necessary to include that in the text.
Signing of the Memorandum of Cooperation
between the Ministry of Finance of Japan and the Bank of Thailand
on the Cooperation to Promote the Use of Local Currencies
Ministry of Finance, Friday, March 9, 2018
The Ministry of Finance of Japan and the Bank of Thailand signed the Memorandum of Cooperation for the Establishment of a Framework for Cooperation to Promote the Use of Local Currencies.
The authorities of both countries reached mutual agreement on initiatives relating to the promotion of the use of local currencies for trade and investment settlement, which includes, among others, promotion of the direct exchange rate quotation and interbank trading between the Japanese Yen and the Thai Baht. This cooperation will be enhanced through information sharing and periodical discussions between Japanese and Thai authorities.
This collaboration marks a key milestone in strengthening bilateral financial cooperation between Japan and Thailand. The authorities believe that it will positively contribute to closer trade and investment ties between the two countries.
