2. Reason 1: An Ever-growing Economy
Why Japan?　“5 Reasons to Invest in JAPAN”
Japanese economy steadily recovering from deflation
Improving GDP growth rate
Source: Fiscal 2017 Economic Outlook and Basic Stance for Economic and Fiscal Management, Cabinet Office website

3. Business performance showing significant improvement
Reason 1: An Ever-growing Economy
Why Japan?　“5 Reasons to Invest in JAPAN”
Business performance showing significant improvement
Corporate ordinary profits (all industries)
Unemployment rate and jobs-to-applicants ratio
Source: Created from "Financial Statements Statistics of Corporations by
Industry, Quarterly," Policy Research Institute, Ministry of Finance of Japan
Source: Created from "Labor force survey," Ministry of internal Affairs and Communications; and "Statistics on Employment Referrals for General Workers," Ministry of Health Labor and Welfare

4. Reason 1: An Ever-growing Economy
Effective corporate tax rate declining
Effective corporate tax rate reduced to 20% level
Source: Created from "FY2016 Tax Reform (Main Points) (December 2015),"Ministry of Finance and other information on the website
Note: Tax rates as of April 2016

5. The stock of Japan's inward FDI
Reason 1: An Ever-growing Economy
Promotion of inward FDI
Government target: Increase Japan’s inward investment stock to 35 trillion yen by 2020.
The stock of Japan's inward FDI
Source: Created from "Balance of Payments," Ministry of Finance

6. Foreign/ Foreign Affiliated companies
Launched project-based “REGULATORY SANDBOX” scheme
（June 2018-）
Launch a scheme for carrying out trials freely for new businesses for a certain period of time, without conforming to existing regulations
Feature of “REGULATORY SANDBOX” scheme
JETRO is in charge of point of contact for foreign and foreign companies
“Let’s try it first!”
●In case that a relationship between aiming new business / new technology and regulation generates a problem
●periods and participants be limited and then demonstration be conducted
●Data will be collected by demonstration and regulatory reform be implemented based on it
Dialogue with market/ policy formulation by demonstration
“Due to the regulation of the law, it seems hard to commercialize the business. How can we make it...?”
Foreign/ Foreign Affiliated companies
Consultation
Besides introducing the Sandbox scheme by staff in charge at home and abroad, JETRO makes a contact with Cabinet Secretariat.
JETRO
Cooperation
Cabinet Office
As a center of point of contact, coordinate with each competent ministries and agencies as well as support creation of application forms
Request for consideration
In addition to conducting demonstration experiments, competent ministry will review the regulatory system
Competent Ministry

7. Japan’s GDP is about 500 trillion yen, World’s 3rd ranking GDP.
Reason 2: A Sophisticated Market
Japan’s GDP is about 500 trillion yen, World’s 3rd ranking GDP.
Japan's regional economies have GDPs equal to those of entire countries.
Source: Cabinet Office, “Report on Prefectural Accounts 2013” (FY2016)

8. An environment that generates innovation
Reason 3: An Innovation Hub
An environment that generates innovation
Japan’s patent track record
Number of international patent
applications per 1 million people
Number of filed patents by
country of residence of applicant
Japan's patent system is
internationally praised.
Source: "The Global Information Technology Report 2016,“ World Economic Forum
Source: Japan Patent Office Annual Report 2016
Data source: WIPO (World Intellectual Property
Organization)
Source: "OECD Factbook "
Better environment for development and patent application of drugs and medical devices
・An environment to support sustainable development of innovative drugs by pharmaceutical
companies, including a preferential pricing system for designated new drugs and the
prioritized review for early authorization
・Deregulation to promote practical use of medical devices, reduction of development
costs and expedition of approval procedures
・The world's most advanced early approval system for regenerative medicine which halves
the necessary time frame from R&D to approval for marketing
Source: Created from "Pharmaceutical Industry Vision 2013;" Ministry of Health, Labor, and Welfare

9. Innovation created in Japan by foreign companies
Reason 3: An Innovation Hub
Innovation created in Japan by foreign companies
Nation
wide GE
Developing high-tech products through collaboration with Japanese enterprises
Kawa
saki
Johnson & Johnson
Training facility for medical care workers
Kawa
saki
L'Oréal
Developing advanced cosmetics with Japanese technology
Hyogo
Caterpillar
Core base of worldwide hydrauric shovel development
Yama
gata 3M
Global "Super Hub"in Yamagata
Source: Created by JETRO from each company's website, press releases and other information.

10. Reason 4: Business-Friendly Infrastructure
Supporting business with well-developed social infrastructure
Japan’s business environment and IT infrastructure was highly rated in the World Economic Forum's reports.
Source: “The Global Competitiveness Report ,” World Economic Forum
Source: "The Global Information Technology Report 2016," World Economic Forum

11. A safe and peaceful country
Reason 5: A Comfortable Living Environment
A safe and peaceful country
Global Peace Index 2016
Safe Cities Index
Among major 50 cities in the world, Tokyo 1st and Osaka 3rd
Source: "Global Peace Index 2016," Institute for Economics and Peace
Source: "Safe Cities Index 2015," The Economist Intelligence Unit
Social stability
Source: Survey on Attitudes of Foreign-Affiliated Companies toward Direct Investment in Japan Report 2016," Ministry of Economy, Trade, and Industry (METI)

12. Case Study
MER MEC JAPAN GK

13. Advantages of Japan-EU EPA for the EU
1. Improvement of Market Access
Expanding business opportunities will
- Improve productivity
- Accelerate GDP growth
- create EU jobs – every €1 billion in EU exports supports
14,000 jobs in EU.
Liberalization: approximately 94 % of goods in Japan
Liberalization: approximately 99 % of goods in EU
5. Regulatory Cooperation
2. Protection of Geographical Indication
The deal will, especially in agricultural and motor vehicle sectors, enable two parties to;
- discuss how to address issues when the two sides' regulations diverge or are incompatible.
- work more closely together on developing international standards
Japan will recognize 210 EU’s GIs.
This protects European farmers and producers selling abroad.
3. Government Procurement
6. Promoting Investment
The deal will expand the opportunities for EU suppliers to participate in open tenders in Japan– Central and Sub-central.
In railways sector, the deal will also improve market access to Japan for EU companies.
The deal will promote Japan’s foreign direct investment in EU because;
- of improvement of investment climate
- Japanese companies would feel more familiar to EU market as a result of closer trade relationship.
4. Trade in Service
7. Trade and Sustainable Development
The deal will open up Japan’s services market to EU firms.
The deal will show commitments to internationally recognized environment and labour standards.
〔Source : European Commission, Ministry of Foreign Affairs of Japan〕