G7 ministers at a meeting in Sapporo Japan | Photo: Kyodo via REUTERS

Japan will host G7 foreign ministers today in Karuizawa, Nagano.

The three-day meeting will form the agenda for the G7 Summit in Hiroshima from May 19-21. As president, Japan gets to influence the agenda items and G7 priorities this year with notable focuses on trade, climate change and energy, plus the digital economy.

Ultimately, Japan is likely seeking WTO reforms. In particular, Tokyo seeks global consensus on privacy and security of data. Its essentially a defense of the US-led post-war economic order—a notable counter to the alternative economic order most prominently represented by the BRICS group of developing economies led by China, Russia and India. Tokyo’s advocacy for the WTO to crack down on ‘unfair’ trade practices is illustrated by the practice of forced technology transfer to host country companies—a legal norm for foreign companies operating in China. Similar to the US, Tokyo views technology transfer requirements as a threat to the intellectual property and competitive advantage of its technology companies—including emerging green technology.

Expect consensus on WTO reforms at the G7. However, persuading developing countries—many of which view WTO reform as an attempt by developed countries to contain their economic growth—is unlikely in the medium-term.