The announcement by Itochu, a Japanese trading giant, on February 5 that it was terminating its agreement with the Israeli defense contractor Elbit Systems has created shockwaves throughout corporate Japan. Itochu cited the International Court of Justice ruling that Israel may be committing genocide in Gaza as well as the position of the Japanese government that the ICJ decision must be implemented “in good faith”.
Itochu is a major player in Japan, being the third largest trading firm and a titan of the country’s economy with a 2023 revenue of over $104bn. Its decision to terminate the agreement sends a strong message about the acceptability of doing business with Israel.
This move puts Itochu in a different category from many Western states and companies that have either ignored the ICJ ruling or downplayed the charges of genocide. The decision also reflects a growing sensitivity among Japanese companies to public opinion on human rights and environmental issues.
The termination of the agreement also marks a significant shift in Japan’s policy, especially in light of the country’s remilitarization efforts and its ties with the United States. The move by Itochu has global implications and may mark the beginning of a new trend. The Boycott, Divestment, and Sanctions (BDS) movement is also commended for its efforts in holding companies accountable for their complicity in Israel’s abuses.
Ultimately, the responsibility to ensure that companies respect human rights and international law lies with governments. It is crucial for Western governments and Japan to stop their support of Israeli apartheid and genocide and hold companies accountable for their actions.