Japan, WTO vow to strengthen multilateral trade system

The policy was included in a joint statement issued after a meeting between Japanese Foreign Minister Takeshi Iwaya and WTO Director-General Ngozi Okonjo-Iweala.

In the meeting at the Foreign Ministry's Iikura Guest House in Tokyo, they discussed the fierce trade friction created by U.S. President Donald Trump's high tariff policy, and reform of the WTO for restoring its dispute settlement system functions.

"In a time of uncertainty and disruption, the value of the multilateral trading system is unquestionable," the joint statement said.

The statement said the Japanese government and the WTO "concurred that economic integration anchored in free and fair and rules-based trade has fueled economic growth and prosperity of WTO members and for the wider global economy."

It also underlined an importance of ensuring "a level playing field for trade."

The WTO's capacity to settle trade dispute has been dysfunctional since December 2019 because of the United States' opposition to the appointment of new members of the organization's Appellate Body.

Considering the situation, Japan suggested that the WTO should be reformed based on three pillars--strengthening the rule-making function to address the current circumstances, dispute settlement reform and strengthening the functions of monitoring the implementation of agreements and deliberation.

The country also underlined "the need of ensuring that disputes are resolved in line with the rules in the interim until dispute settlement reform is realized."

Also on Tuesday, Okonjo-Iweala held separate talks with Japanese Prime Minister Shigeru Ishiba, Finance Minister Katsunobu Kato and trade minister Yoji Muto.

At a meeting at the prime minister's office, Ishiba and Okonjo-Iweala confirmed cooperation between Japan and the WTO toward maintenance and enhancement of the multilateral trading system, with the Trump administration's high tariff policy in mind.

The prime minister emphasized that the multilateral trading system with the WTO at its core has become more important amid rapidly escalating tension around international trade.

The WTO chief said that the cooperation between WTO member countries is important, and showed expectations for Japan's role.