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The text of the following statement was released by the Governments of the United States of America and Japan on the occasion of the inaugural ministerial meeting of the U.S.-Japan Economic Policy Consultative Committee.
United States Secretary of State Antony Blinken and Secretary of Commerce Gina Raimondo co-hosted Japan’s Minister for Foreign Affairs HAYASHI Yoshimasa and Minister of Economy, Trade and Industry HAGIUDA Koichi for the inaugural ministerial meeting of the U.S.-Japan Economic Policy Consultative Committee (EPCC) on July 29, 2022. The Ministers affirmed their shared resolve to present a positive economic vision that highlights the benefits of a rules-based international economic order and emphasized the need to make our economies more competitive and resilient.
The Ministers considered the complex global economic context that has produced increased levels of risk and uncertainty for all. They noted recovery from the COVID-19 pandemic remains incomplete, and the pandemic has contributed to various economic challenges including supply chain disruptions, increasing commodity prices, and greater inequalities, many of which have disproportionately impacted historically underserved communities. The Ministers strongly condemned Russia’s brutal, unprovoked, and unjustified aggression against Ukraine and shared the view that it has exacerbated such challenges and undermined energy and food security around the world. The Ministers affirmed the need to address the climate crisis in the face of complications due to energy insecurity.
The Ministers also recognized the pandemic has significantly altered social and economic life through accelerated adoption of various technologies, including digital transformation, providing new opportunities as well as challenges. They noted technological innovation – including in critical and emerging technologies such as artificial intelligence, quantum technologies, and renewable and circular technologies – presents transformative potential, as well as risks for our economies if abused. The Ministers committed to continue taking steps to realize a full and sustainable recovery from the pandemic and enhance the international order in the post-pandemic world to optimize new opportunities and prepare for unprecedented challenges.
The Ministers resolved that the United States and Japan stand for open, sustainable, and inclusive economic growth that delivers prosperity, upholds democratic values, reduces economic disparities, and protects human rights in the Indo-Pacific region and beyond. They reiterated the importance of commitments to promote broad-based economic prosperity for our middle classes, including through economic and foreign policies that benefit workers and small businesses and increase women’s economic participation. They intend to promote this vision through the EPCC and other platforms, including the G7, APEC, and the Indo-Pacific Economic Framework for Prosperity (IPEF). They committed to advancing policies that support a multilateral trading system based on free and fair trade and that counter economic coercion and non-market policies and practices, emphasizing the importance of offering workers, businesses, and countries around the world a level playing field.
The Ministers shared the view that the United States and Japan, as the world’s two largest democratic economies, can demonstrate that democracies provide the best model for prosperity, stability, and security. In this context, the Ministers committed to continue sharing insights and exchanging views on our respective economic agendas, including President Biden’s plan to build from the bottom up and the middle out, as well as Prime Minister Kishida’s “new form of capitalism.” They further reviewed ways to defend workers, companies, and investors against the harms of unfair, anti-competitive, and non-market policies and practices. The Ministers also welcomed cooperation between the two countries in furtherance of shared objectives under the CoRe Partnership, as well as with like-minded partners, and emphasized our joint leadership in enhancing the rules-based economic order and prosperity in the Indo-Pacific region and beyond.
The Ministers committed to countering threats to economic security and to the rules-based international economic order and noted recent developments in both countries, including passage of Japan’s Economic Security Promotion Act. The Ministers focused on the resilience and diversification of critical supply chains to promote their transparency, security, and sustainability. The Ministers also intend to collaborate in promoting and protecting critical and emerging technologies in a manner consistent with international rules and norms, including through research and development, as well as export controls, so as to support technological competitiveness and resilience and to address the challenges posed by the illicit diversion of technology critical for weapons development.
The Ministers expressed grave concern about, and opposition to, harmful uses of economic influence, including economic coercion as well as unfair and opaque lending practices, in ways that threaten the legitimate interests of sovereign nations, as well as those of individuals and industries. The Ministers affirmed these practices undermine legitimate sovereign choices, challenge the free and open rules-based international order, and are best addressed through a collective response. Respecting the importance of sustainable finance for long-term economic growth and development, they stressed the need to work together bilaterally and multilaterally to promote fair and transparent development finance across all debtors and creditors in accordance with internationally recognized principles, rules, and standards. In addressing these issues, the Ministers expressed their intention to deepen discussions and foster cooperation among like-minded partners.
The Ministers emphasized their conviction that economic security is indispensable to overall security, and that diplomacy and economic policy are intertwined and require a coordinated approach. Towards that end, the EPCC can provide an essential channel for bilateral collaboration, and the Ministers also confirmed their intention to meet periodically in this forum and to cooperate on economic priorities during the United States’ 2023 APEC host year and Japan’s Presidency of the G7 in 2023.
Recognizing the importance of carrying forward the priorities identified under the EPCC, the Ministers charged their undersecretaries and vice-ministers with implementing the EPCC Plan of Action based on their economic vision, ensuring robust private sector engagement to inform ongoing efforts, and convening the next EPCC vice-ministerial meeting before the end of 2022.