Japanese Economic Security as “Derisking”

Japanese Economic Security as “Derisking” By Kazuto Suzuki Introduction The term “derisking” has become a buzzword not only in the field of economic security but also in the discussion of international politics after Ursula von der Leyen, the President of the European Commission, the executive arm of the EU, commented that the EU should pursue “derisking” rather than “decoupling.”1 However, derisk. [...] Kazuto Suzuki is the Professor of Global Political Economy of the Graduate School of Public Policy in the University of Tokyo, and the Director of the Institute of Geoeconomics at the International House of Japan. [...] attitude has continued under the Biden administration, and for the time being, the WTO’s dispute settlement mechanism is unlikely to resume its functions.23 In addition, in anticipation of the Appellate Body not convening, the tactic of leaving disputes unresolved by “empty appeals” to the Appellate Body by the losing party in the initial judgement by the panel also limits the deterrent effect. [...] The MPIA is a system whereby an appeal against a panel decision of the WTO Dispute Settlement Mechanism is heard in the same manner as the Appellate Body by using the arbitration system in the WTO Agreement and the hearing rules of the Superior Committee.24 Japan became a member of this MPIA in 2023.25 In addition to the EU, China is also a member, which should have a certain deterrent effect agai. [...] A democratic state is threatened by the possibility of losing power in the next election if the other party imposes economic coercion, as the injured firms and consumers become dissatisfied and critical of the administration in power.