JAPAN Trends and Developments Contributed by: Colin Trehearne, Lexi Takakamatsu, Daniel Allen and Yoshinori Tatsuno, Mori Hamada & Matsumoto
and private stakeholders and examined four main areas of focus for future action: • making the international arbitration environment in Japan more attractive to international users; • expanding publicity activities; • developing human resources; and • establishing arbitration hearing facilities. The 2024 Policy Report Building on these developments and its analysis, on 30 May 2024 the Cabinet Secretariat’s Inter-Ministe - rial Council for the Promotion of International Arbitra - tion issued the “2024 Policy (Measures to Promote International Arbitration)” (the “2024 Policy Report”). This policy document, which builds upon the 2018 report, expresses Japan’s policy direction in support - ing the promotion of international arbitration in Japan. It emphasises the importance of a robust system of international dispute resolution, particularly in light of Japanese corporations’ increasing transactions in Asia, especially South-East Asia. The data support this approach with Japanese corporates generating an increasing share of their earnings from overseas investment and, as of 2024, retaining just over half (51%) of their foreign direct investment earnings abroad for reinvestment. The report highlights, amongst other things, that: • the inclusion of arbitration agreements in com - mercial contracts should be promoted, in particu - lar those that designate Japan as the seat, and, together with the Japan External Trade Organiza - tion (JETRO), arbitration agreements should also be promoted in contracts concluded by small and medium-sized enterprises; • Japan as a country should actively participate in and contribute to the formation of international standards; • cultivating the skills of, and number of, counsel and arbitrators within Japan is of the utmost impor - tance as it will contribute to the effective use of arbitration by Japanese corporates; • efforts at collaboration should be pursued, particu - larly with stakeholders overseas including, specifi - cally, the ASEAN Secretariat and UNCITRAL; and
• the Japan Commercial Arbitration Association and other representative commercial institutions based in Japan should be promoted. Concrete Steps to Promote International Arbitration in Japan Consistent with the aspirations set out in the 2024 Policy Report, 2024 was a year of visible and sub - stantial efforts to promote and expand international arbitration in Japan. One high-profile development was the successful hosting of Japan International Arbitration Week in Tokyo from 18 to 22 November 2024. This was the first event of its kind focussing on international arbitration held with the co-operation the Ministry of Justice, the Ministry of Economy, Trade and Industry, the Japanese Association of Arbitrators (JAA), and the Japan Commercial Arbitration Associa - tion (JCAA). The week attracted approximately 1,300 participants from Japan and abroad and featured a series of events co-hosted with multiple international arbitral bodies and industry associations, including with the Inter-Pacific Bar Association, the International Chamber of Commerce, UNCITRAL, the Singapore International Arbitration Centre, Singapore Interna - tional Mediation Centre, and the Chartered Institute of Arbitrators. While the discussions covered a wide range of areas, two areas of notable focus stood out: (i) the benefits of Japan’s strengths as a seat of arbi - tration, and (ii) the development of “Arb-Med-Arb” procedures aimed at combining the best of arbitra - tion and mediation. Building on this success, the next Japan International Arbitration Week has now been announced for 25 to 29 November 2025, with expec - tations of even greater success. Broad-Based Organic Growth Alongside Some Consolidation While Japan International Arbitration Week has com - manded the majority of commentator attention in this space, organic growth across other institutes and fora has also continued to be visible. March 2024 saw the JAA co-host (together with the Japan Federation of Bar Associations, the Ministry of Justice, and the Japan International Dispute Resolution Centre (JIDRC)) JAA Arbitration Day 2024. The event featured international participants (including representatives from the ICSID) and examined, among other things, recent trends in Japan’s arbitral landscape, including ISDS and media -
395 CHAMBERS.COM
Powered by FlippingBook