Japan must adopt a multilayered approach to its trade policy to cope with the ever-accelerating globalization of world economies through greater regional integration, according to the 2000 White Paper on International Trade released Tuesday.

In the annual report, presented to the Cabinet at their Tuesday meeting by International Trade and Industry Minister Takashi Fukaya, Japan was also urged to revitalize its economy through structural reforms and increased foreign investment.

Although the nation's basic policy is to strengthen multilateral trade centering on the World Trade Organization, the nation needs to blend that policy with regional efforts, such as the Asia-Pacific Economic Cooperation forum and bilateral trade ties, to cope with the diversity and pace of change in the global economy, it says.

Underscoring how important it is for Japan to make the most of globalization to invigorate its economy, the white paper says regional economic integration and structural reform are "two sides of the same coin."

"Regional integration should be considered complementary to multilateral trade under the WTO," the white paper stresses.

The effects of regional integration, such as market expansion and the facilitation of competition and policy reform, are worth taking into account when Japan considers bilateral free-trade agreements with Singapore and South Korea, it adds.

The paper also recognizes the greater role developing countries now play in the globalization of the world's economies in the 1990s.

"Economic globalization can no longer fail to include developing countries," the white paper says, citing the fact that they were the recipients of 35 percent of imports in goods, 28.5 percent of service imports and 40 percent of direct investment worldwide in 1997.

"Encouraging developing countries to further participate in the liberalization of trade and investment is indispensable for the balanced development of the global economy," it says.

Assessing the effects that liberalization are likely to have on developed and developing nations in different sectors, the paper says promoting comprehensive cross-sectoral liberalization is the best way to motivate both sides to enter trade liberalization negotiations.

However, the report warns that the high number of antidumping steps taken in recent years may slow the progress of liberalization under the WTO and urged world economies to prevent abuse of antidumping measures.

The report also notes increased public awareness of trade liberalization as a result of the activities of nongovernmental organizations, as exemplified by demonstrations in Seattle in December to prevent the launch of the new round of WTO talks. The paper acknowledges NGOs will continue to play an important role.

"In promoting trade liberalization, the government needs to enhance transparency of policy and disclosure of information," the report says. "By building sound relations with the non-public sector of society, it can adopt appropriate policies."

The white paper also urges Japan to seize the opportunity that economic globalization presents to further reform economic structures in areas such as the electric power, telecommunications, aviation and financial sectors.

In 1999, foreign investment in Japan reached record levels, with large-scale investment by Renault SA., British Telecommunications PLC and AT&T Corp. helping to boost the volume of investment to 1.21 trillion yen as of the end of the first half of the year.

"The recent increase in foreign investment in Japan can be an opportunity to bring in foreign-affiliated firms' knowhow, technology and managerial techniques to aid Japan's corporate management," the report says. It adds that various systematic reforms taking place in other countries should provide incentives for Japan.

Specifically, the white paper urges Japan to commit itself to reforms in education and medical care as well as judicial reforms designed to enrich legal services and boost the number of lawyers.