- Coalition Government Between the Liberal Democratic Party and Japan Innovation Party
- Political Funding Issues
- WTO Mission
- Cybersecurity
- Stock Market Trends
Coalition Government Between the Liberal Democratic Party and Japan Innovation Party
(In response to a question regarding what Chairman Tsutsui particularly expects from the coalition government between the Liberal Democratic Party and the Japan Innovation Party) Given that important diplomatic events are approaching and major issues are piling up at home and abroad, establishing a stable political structure is an urgent priority. Under these circumstances, I view the coalition government between the Liberal Democratic Party and the Japan Innovation Party as an opportunity to achieve greater political stability. In terms of policy as well, I recognize that there is significant common ground in areas such as social security reform, energy issues, diplomacy, and national security. I expect them to put an end to the so-called political vacuum and advance policy swiftly and steadily.
(In response to a question regarding what measures are needed to restore public trust in both parties, given that their proportional vote totals in the most recent Upper House election decreased compared to the previous election) Looking at the proportional vote totals for both parties, there's no denying that public confidence has declined. In their efforts to restore trust, they must be swift and consistent in responding to the many pressing issues before them. This includes, as political reform, sincerely confronting issues related to politics and money and deepening inter-party discussions, addressing measures against rising prices that became a major point of debate in the Liberal Democratic Party presidential election, and demonstrating a commitment to tackling the medium- to long-term structural problems facing Japan. It is essential to communicate each policy clearly to the public and overcome these challenges through actions that match their words.
(In response to a question regarding differences from the previous coalition government between the Liberal Democratic Party and Komeito, and Chairman Tsutsui's expectation for both the LDP and the Japan Innovation Party to make the coalition sustainable) I recognize that the LDP-Komeito coalition government, which lasted 26 years, contributed to political stability. Under the new coalition government, I hope to see policy implementation gain even greater momentum. In advancing the policies that the Japan Innovation Party has put forward, establishing a collaborative framework with the Liberal Democratic Party will serve as the driving force. A short-lived coalition government would be meaningless; the key to ensuring sustainability lies in both parties fully sharing their policy positions. Since there is substantial overlap in the policies advocated by both parties, even if there are themes that require thorough coordination between them, I hope they will return to the fundamental principles and forge ahead with policy-driven politics.
Political Funding Issues
(In response to a question regarding whether Keidanren, which has been encouraging political donations, has any regrets concerning corporate and organizational donations that led to the so-called ‘slush fund scandal' within the Liberal Democratic Party, and whether there is a need to present more concrete measures) I recognize that parliamentary democracy and party politics entail costs, and that voluntary donations from the private sector are accepted as part of the private sector's social role. Keidanren has been encouraging political donations strictly in accordance with current rules, and as part of corporate social responsibility toward the development of parliamentary democracy, we emphasize that this should be based on the autonomous judgment of corporations and organizations making the donations. However, as issues related to politics and money continue to draw attention, from the perspective of restoring public trust, I would like to see deeper inter-party discussions on how corporate and organizational donations should be handled. Keidanren believes that what matters most regarding political funding is improving transparency, making it more visible, and we will continue to advocate for restoring trust in politics, including strengthening party governance.
(In response to a question regarding reputational risks associated with globally operating companies continuing political donations to parties implicated in slush fund scandals) It is true that companies are constantly required to be accountable not only to globally operating enterprises but also to domestic and international shareholders. However, as a corollary of companies exercising their own judgment, there remains the possibility of reputational risks depending on how these decisions are explained. Keidanren believes that improving transparency around political funding is both directly and indirectly important in terms of addressing reputational risks for corporations and organizations making donations. Going forward, we will continue to advocate for improved transparency along with strengthened party governance.
WTO Mission
(In response to a question regarding the significance of choosing the World Trade Organization as the first overseas visit since assuming the position of Keidanren chairman) Not only WTO Director-General Ngozi Okonjo-Iweala herself, but also WTO member countries share a sense of crisis regarding maintaining the free trade system, and there are expectations for Japan. Having the opportunity to visit the WTO immediately after recently publishing our recommendations on WTO reform was particularly timely. In these recommendations, we have proposed specific measures toward building WTO 2.0, as outlined in FUTURE DESIGN 2040, to resolve issues with the WTO that has not necessarily been functioning adequately. Through this visit, I hope to share these ideas widely while engaging with Director-General Okonjo-Iweala and ambassadors from major countries and regions. Additionally, to present a pathway to WTO 2.0, I intend to engage in dialogue with stakeholders by proposing the formation of a Free and Fair Trade and Investment Club consisting of like-minded countries committed to high-level trade and investment standards. This WTO visit represents the first step in our advocacy for WTO reform, and we will continue our outreach to countries that espouse free trade and investment by utilizing opportunities such as bilateral committee activities and mission deployments.
(In response to a question regarding how to approach the United States concerning WTO reform) The United States is our most important ally, and I recognize it will continue to play a pivotal role in trade and investment. Through various opportunities in private economic diplomacy, I would like to steadily and persistently convey to the United States the great significance of WTO reform. Of course, I understand that U.S. influence has played a significant role in the WTO's dysfunction, so it may be difficult to break the impasse overnight. With the understanding that considerable time will be required, I want to proceed steadily with dialogue.
(In response to a question regarding what the chairman considers particularly problematic in the current situation for WTO reform) To realize the ideal of maintaining and strengthening a free and open international economic order, we need to resolve governance issues within the WTO. Therefore, I would like to propose measures to overcome the WTO's dysfunction, such as institutional arrangements that would prevent a small minority from obstructing rule-making, ensuring effective dispute resolution, and creating rules responsive to security, sustainability, digital issues, and other areas. Additionally, I would like to continue advocating for the Free and Fair Trade and Investment Club to serve as a catalyst for incorporating high-level EPA rules and similar frameworks into WTO agreements.
(In response to a question regarding whether the chairman will continue advocacy efforts toward realizing recommendations for the WTO Ministerial Conference scheduled for March next year) Even after this visit, I will continue advocacy efforts toward the WTO Ministerial Conference and will widely share with stakeholders the need to address WTO reform with a clear deadline.
Cybersecurity
(In response to a question regarding the chairman's views on the ongoing damage from cyberattacks and what countermeasures are needed) While I will refrain from commenting on individual company cases, cybersecurity measures must no longer be viewed as costs but rather positioned as investments that form the foundation of governance and management strategy with a medium- to long-term perspective. Given the advanced digitalization of supply chains, cybersecurity measures can be considered a form of social infrastructure. Since individual company responses have reached their limits, this needs to be addressed as a critical national issue through public-private collaboration. Based on the intent of the newly enacted Active Cyber Defense Act, close public-private coordination and a nationwide response are required. Keidanren will continue to advocate for policies that combine effectiveness and sustainability while exchanging views with relevant ministries such as the National Cybersecurity Office and the Ministry of Economy, Trade and Industry.
(In response to a question regarding the chairman's views on the cyberattack on Asahi Group Holdings affecting logistics) I recognize that there is currently a significant impact on supply chains, particularly logistics reaching end consumers. Across various industries, there are movements toward sharing logistics functions among companies, which will need to be further promoted in this era of labor shortages. If cybersecurity incidents occur in other industries in the future, problems affecting companies' mission to reliably supply products to end consumers could arise across entire industries. In this sense as well, it is important to advance nationwide measures and strengthen public-private coordination.
Stock Market Trends
(In response to a question regarding the chairman's views on today's (October 20) stock market trends) While easing U.S.-China trade tensions can be cited as one factor, I believe the primary factors are a sense of relief that domestic politics will stabilize under the coalition government between the Liberal Democratic Party and the Japan Innovation Party, and expectations for the new administration. However, stock prices constantly fluctuate, and adjustments may occur in the future. What is important is that stock prices rise stably as a medium- to long-term trend. For that to happen, achieving the virtuous cycle of growth and distribution that Keidanren has been advocating will serve as the foundation.