 We're a little bit behind, but we'll make up the time. We're going to ask now our partner in this 10th annual Asia-Pacific Economic Integration Conference that CSIS does with our friends at JETRO to now give us some remarks and set the scene for our panel discussions on developments in the Asia-Pacific Economic Integration process. Simon Ishige is a veteran of METI and has been leading JETRO since 2011 before that it was the Vice Minister for International Affairs of the Ministry of External Trade and Industry, METI, which he joined, well I won't say how long ago, but some time ago after getting a degree in economics at the University of Tokyo, his opening comments are always very helpful for us to frame the overall patterns in the region and then we'll move to a panel discussion with experts from Japan, China, Singapore, and the U.S. So Chairman Ishige, thank you. Thank you very much for the kind interaction. Good morning, ladies and gentlemen. I'd like to express my sincere gratitude to all of you for joining us today. Let me also extend my deepest appreciation to ambassadors, U.S. government officials, and business leaders, and of course I give my thanks to Dr. Hamre and Dr. Green as well as their colleagues at the CSIS for their dedicated work. JETRO has held this annual seminar here in Washington, D.C. since 2004 and today's seminar is the ninth in cooperation with the CSIS. I would also like to take this opportunity to congratulate you for this beautiful new intelligent building which opened last September. This is the first time for me to come here, so I say so. With that, I would like to enter the main topic of this seminar, Ethnic Integration within the Asia Pacific region. This April, you are present by Guwama B2 Japan. Actually, I had the honor of speaking to him directly during the state dinner hosted by the Emperor of his palace. I said to him, early June in Washington, D.C., JETRO and the CSIS, the most influential think tank in the United States will co-host a seminar on the Asia Pacific Ethnic Integration, our driver's speech. Its content depends on the outcome of the TVB negotiations. He instantaneously pointed at Prime Minister Shinzo Abe and said, tell him, not me, tell him, that's our conversation. Of course, he is responsible for this negotiation. Although the United States and Japan were not able to announce an agreement in principle on the TVB negotiations during the present visit, I think that both sides crossed an important threshold. This May, at the OECD ministerial council meeting, Prime Minister Abe delivered a keynote speech. He said the top most agenda item on my list of reforms is to accelerate negotiations on FTAs with our economic partners around the world. Among those, the most important FTA is, of course, the TVB. In Tokyo, President Obama and Prime Minister Abe enjoyed dinner together at a sushi bar named Sukiabashi Jiro. You can see then in the picture here that both the sushi chef is Jiro-san. Have you ever been there? No, it's very expensive I have. I have never been there, by the way. And the most leaders of the United States and Japan finally found the roadmap toward the conclusion of the TVB and the mutual sense of mutual trust over sushi dinner. Both leaders seem to be prepared to spend their political capital towards concluding these difficult negotiations. This is what I would like to emphasize before beginning. Okay, I would like to speak on four points. First of all, I will explain why FTA is important. While doing so, I will describe progress throughout their conclusions. Second, I will raise these important challenges, three important challenges related to the TVB. Third, I will touch on our SEP, and finally, I would like to describe how it all ties together in paving the road to FTA. First of all, regarding main FTAs, why are they important? Both Japan and the United States have recognized the need to establish a new trade and investment system within the Asia Pacific region that is free, open, transparent, and innovative. In other words, an economic integration area among our members with common basic values and rule of law. In the material arena, the WTO Minister meeting at Bali in Indonesia successfully produced an early harvest package last December. However, the agreement was 13 years in the making and only constituted part of the whole Doha package. This demonstrates just how critically important main FTAs are for rulemaking on international trade and investment. Last May, I made a speech on the same subject here in CSIS. Since then, we have made substantial progress if I would compare the TVB negotiations to a host race. We have turned the fourth corner and entered the final stretch. This is the most critical moment for finalizing the negotiations. OTPP partners, except the United States and Japan, have taken a wait-and-see policy after the ministerial meeting in Singapore this February. They had waited for the outcome of the bilateral negotiations between the two countries. At the end of April, as I said, President Obama visited Japan as a state guest and negotiations made substantial progress during this time. I am very impressed by the Japanese newspaper reported that both governments had agreed in principle. Actually, according to a joint statement by both parties, and I quote, we have identified a path forward on important bilateral TPP issues. We should now call upon all TPP partners to move as soon as possible to take the necessary steps to conclude the agreement, end of quote. This May, a trade minister's meeting was held in Singapore, and chief negotiators meeting in Hanoi, based on the milestone progress in negotiations achieved in Tokyo. These following meetings have likely narrowed the gaps between the TPP partners with regard to rulemaking on sensitive areas as there are market access issues. Other TPP negotiations move forward. The decision is naturally shifted to the trade promotion authority, as Congress described. Although this is a purely domestic procedure for the U.S., among Japanese diet members some ask whether the talks will be able to proceed without this authority. However, the Japanese government decided to start, decided to accelerate the negotiations based on the confidence that their U.S. counterpart would acquire the TPA in an appropriate time frame. I would like to ask you to discuss this subject in the following panel session. I believe that the TPP is the driving force for the other mega-FTAs, such as ASAP, the China-Japan-Korea FTA, Japan-EU FTA, and TTIP. The TPP matters not only for the value it has, but also the ripple effect it has on the other FTAs as well, in terms of international trade and investment rulemaking. This leads into my second topic today, three points to be addressed regarding the TPP. First, as I said, the conclusion of the negotiations on the TPP must be made expeditiously to accelerate other FTAs. Prime Minister Abe proposed a plan to conclude the Japan-EU FTA by the end of 2015. This was favorably received by most major EU members. ASAP is scheduled to be finalized by the end of 2015, and the TTIP should not be delayed much longer than the others. It's time for us to accelerate the negotiation process of the TPP so that most of the mega-FTAs can be concluded by the end of 2015. Like while they are in the heart, my mother always told me as a boy, Hiroyuki, this is my first name, you are not quick, but don't miss this opportunity when it comes. Never be hesitant. My mother, not father, was very strict, and I followed my mother's order always. Second, although the TPP represent 21st century trade and investment rules, there is a very important but missing agenda to be addressed quickly. What is this new agenda? It is unified technical standards and regulations. In the TTIP, as well as the Japan-EU FTA, we are talking this issue. We are seeking harmonization or unification of technical standards and regulations among partner countries. Considering what will be achieved through the TTIP and Japan-EU FTA, the TV partners should address this agenda so as to reduce the costs showed by private companies. If the technical standards and regulations were unified or harmonized, the benefit would be enormous. The performance of the European Union in this area shows how huge the benefit is. In this regard, I would like to re-emphasize the early conclusion of the TPP negotiation so that we can tackle this agenda expeditiously. Third, the U.S. and Japan should welcome the participation of China in the TPP. The TPP addresses not only tariff elimination and reductions, but also rulemaking in fields such as SOEs, intellectual property rights, and government procurement. These are all the issues faced by U.S. and Japanese companies doing business in China. According to the party decision made last November, China has attached a decisive role to the market mechanism. Therefore, joining regional economic integration, which is high standard, ambitious, and comprehensive, would be conducive to China's domestic reform. I sincerely hope that China will overcome its domestic hurdles and participate in the TPP. In 2001, China acceded to the WTO. To descend, then Premier Zulongi conducted bold economic reform for China. Accession to the TPP would be like a second accession to the WTO. China takes an open position towards the TPP, as long as the TPP is conducive to the development of global trade and fostering of an equitable and open trading environment. China is happy to see its conclusion. This is a message delivered by Premier Riki Kan in the opening ceremony of the Boa Poland for Asia this April. This statement is quite different from what we used to hear from Chinese authorities until then. Chinese leaders have rightly understood the necessity of domestic reform. The building and management of Shanghai pilot a free trade zone, as well as the launch of negotiations on respective investment treaties with the United States and the U.S. to show signs of actual preparation for joining the TPP in the very near future. I may be a little bit too optimistic, but however, it would be unrealistic for China to participate in the TPP at this moment. It is said therefore China touches great importance to our SEP, China intends to designate our SEP as a countermeasure to the TPP for the time being. And this brings me to my third topic today, our SEP. Until recently, our SEP was not considered as mega-FTA in the United States. Actually when I refer to four mega-FTAs in the world, a question came from former USDA. What is the third? What is the fourth? For those involved in U.S. trade policy, mega-FTA means only the TPP and TTIP, which involve the United States. This year, the level of understanding about our SEP has improved. There is no such, no longer such a question. I believe our SEP is one of two powerful drivers for leading two FTAs. The major distinction of our SEP is that it has been promoted based on the actual needs of business in the region. Many companies in the region have begun to establish supply chains and sales networks to enjoy the geographically close and deeply integrated economy. I could say that the TPP will be the most powerful driving force for bar trade and investment digitization in place of the WTO. But our SEP will be the regional comprehensive power within Asia. If these two mega-FTAs are playing different roles within the region, can we simply leave the negotiations on our SEP as they are? I do not think so. Two comments. First, if you look at the figure of FTA stock from Japan and the United States in the RSEP region, you will find that the U.S. services Japan, the amount of FTA from the U.S. to the RSEP region is $447 billion. It is $319 billion from Japan. U.S. investment into the RSEP region is 1.4 times as large as that of Japan. This figure naturally invites you, American business people, government officials and members of Congress, to look at our SEP more carefully. Second, JETO has organized a dialogue between Japanese chambers of commerce in ASEAN countries and the Secretary General of ASEAN for more than five years. The purpose of this meeting is to request each member of ASEAN to improve its business environment. This dialogue provides a very good opportunity for Japanese companies as ASEAN citizens to have a direct exchange of views with the ASEAN Secretary General. The U.S. chambers of commerce probably also have mechanisms of dialogues with ASEAN countries. As ASEAN will sit in the driver's seat of our SEP, I sincerely hope that they will also call on the ASEAN Secretary General to improve the local business environment. U.S. business people should contribute new ideas into the creation of our SEP. I would like to take this opportunity to propose for the U.S. and Japan to work together with the view to achieving a higher level of trade and investment liberalization within our SEP. I assume that trade and services would be a promising candidate to be jointly tackled. Finally, to wrap up my remarks, I would like to describe the road to FTAAP. As I said, ASEAN will sit in the driver's seat in our SEP. Our SEP will gradually materialize liberalization of trade and investment just as ASEAN has achieved until now. I'm sure that our SEP will eventually achieve the high level of liberalization within the region, slow and steady, wins or aes. The problems seem to have been invented for the sake of ASEAN and our SEP. The roles played by the TVP and our SEP are different. The TVP is intended to establish a high standard rules promoting global economic integration and our SEP to create a business friendly environment for the ASEAN supply chains and sales networks. Will they continue to coexist in this region by playing different roles? In answering this, I will share with you my views on the economic integration process within the Asia Pacific region. First, the TVP will be concluded soon, maybe by the end of this year, thanks to the momentum created through the bilateral negotiations between the U.S. and Japan. Second, the TVP needs to address new agendas such as technical regulations and standards as well as to expand the coverage of countries such as for the TVP to become a truly global economic integration framework. This means the accession to the TVP of China, Korea, the Philippines, Thailand, Indonesia and India. Two years ago, in this seminar, I raised this issue as a weakness of the TVP. A limited membership would be a disadvantage. I have to raise this again so as for the TVP to become the real driving force for economic integration within the Asia Pacific region. Third, in the meantime, our SEP will become a body to provide a truly business friendly environment, particularly for competitive supply chains. The coexistence of the TVP and our SEP will continue until their integration into FTAF. I'm afraid that it could be quite a long time because of the difference in terms of rules and level of market access. Considering all the elements taking place in the future, political leaders, both in the United States and Japan, need to make a bold decision so as to conclude bilateral negotiations on the TVP as quickly as possible. Yes, both Mr. Murray and Mr. Froman can make a deal, can find a common ground. They have already spent 60 hours on their talks. Each knows his counterpart's red line. It's time for them to show the political art for compromise they have. Congressman said there is no perfect TVP, no perfect WTO, I guess. Based on shared fundamental values such as democracy, freedom and rule of law, we should work together with a view to creating broad economic integration within the Asia Pacific region as quickly as possible. Lastly, today's theme is progress toward Asia Pacific economic integration and role of the U.S. and Japan. I would like to present my view on role of the U.S. and Japan. Currently we are facing some challenges in terms of the TVP negotiations, but let us be reminded that the U.S. and Japan enjoy a mutually beneficial economic relationship in a significantly broad aspect. In the U.S., Japan is a vital existence to the economy. There are more than 600,000 people employed by Japanese companies. Both countries have high levels of technology and work together closely in many industries with deep mutual confidence. There are many, many examples. I cannot refer to those at this moment, but the point is to realize that the U.S. and Japan should play a decisive role in leading the global economy. And with regard to the TVP, both countries should jointly take actions to strengthen the relationship of the Asia Pacific region and set new global standard rules, such as those of intellectual property and competition. I strongly believe that both the United States should conclude TVP negotiations from an extensive strategic perspective. This is what I want to say at this moment. I look forward to hearing comments on Asia Pacific economic integration from the expert in the Spana after this. Thank you very much.