EU-Japan relations: an untapped potential

31.01.2014 8:26

EU-Japan relations: an untapped potential

Important notice
Views expressed here are the views of the national delegation and do not always reflect the views of the group as a whole

Yesterday MEPs checked the state of play of the currently negotiated EU-Japan Strategic Partnership Agreement (SPA) at a public hearing in the European Parliament in Brussels. The hearing was organized by the EPP Group and hosted by Alojz Peterle MEP, the institution's appointed Rapporteur on the matter.

“EU-Japan relations if enhanced in a comprehensive manner and lifted onto a higher and more strategic plane represent a huge untapped potential”, said Peterle.

The EU and Japan together represent more than one third of the global share of GDP and sources of revenues. With high living standards and seemingly common future challenges, the new agreement comes in the right moment to “provide a change of paradigm, bring people together, bring them hope and a new future, with full commitment and substance ready to deliver concrete results”, as expressed by Mr Shiojiri, Ambassador of Japan to the EU. He also praised the “comprehensive nature of the agreement”.

Mr Isticioaia-Budura, chief negotiator of the EU-Japan SPA and Managing Director for Asia and the Pacific of the European External Action Service (EEAS), reminded about the two track approach of negotiations through which the trade agreement is negotiated in parallel with the strategic agreement since 25 March 2013. He especially emphasized the legally binding nature and the tailored-made approach for negotiating the agreements.

Members of the academic community agreed that the enhancement of political relations could be used to leverage both blocks' soft power position through the upward harmonization of common standards by establishing them on a global and regional level. The areas to be harmonized on a higher level, according to them, are environmental sustainability, health and joint cooperation in the promotion of human rights, peace and security, democracy and the rule of law.

Referring to the state of play of negotiations of the Free Trade Agreement (FTA) Pablo Zalba Bidegain MEP, said: “Different perspectives and ways of doing business exist in both sides, but precisely because of the agreement being negotiated, those many times cultural differences would be effectively minimized”. In this respect, the European Chief Negotiator for the FTA, Mr Mauro Petriccione, underlined, that in 20 years’ time the full potential of market liberalization and harmonization will reach its full impact, with positive effects over job creation, economic and investment activity and substantially enhanced trade volumes.

Alojz Peterle MEP stressed that after four rounds of negotiations the need to “intensify the efforts to move forward with great dynamism, without neglecting the fundamental values both parts share and the responsibility they have to spread them on a global and regional context”.

Peterle concluded that he will table a draft report on the matter containing specific recommendations in the next weeks at the Committee of Foreign Affairs. The report is expected to be adopted this April in Strasbourg, at the last plenary session of the current legislature of the European Parliament.

Note to editors

The EPP Group is by far the largest political group in the European Parliament with 274 Members from 27 Member States.

<p><strong>ABOUT THE EU-JAPAN STRATEGIC PARTNERSHIP AGREEMENT (SPA)</strong></p> <p>EU-Japan relations have grown steadily since the 1991 Joint Declaration and the 2001 Action Plan, in terms of their range and level. However, both Japan and the EU decided to further enhance relations in a comprehensive manner, lifting them to a higher, more strategic and longer perspective plane.</p> <p>The Strategic Partnership Agreement (SPA) is a comprehensive binding agreement covering political, global and sectorial issues and areas of cooperation with Japan.</p> <p>The free trade aspects are covered within the Economic Partnership Agreement. Both are negotiated in parallel and both agreements were envisaged as the ambitious renewal of political and economic relations between the EU and Japan.</p> <p>After more than two years of preparations, scoping exercises and a shared interest to expand horizons of collaboration, the negotiations for both agreements were formally launched on the 25<sup>th</sup> of March 2013.</p> <p>An ambitious and comprehensive Strategic Partnership Agreement or &raquo;Framework Agreement&laquo; is intended to further develop political relations, from dialogue to more operational outcomes, across a wide range of political, global and sectorial issues.</p> <p>Provisions within the agreement will create a solid base for more concrete actions as regards to <strong>political dialogue, human rights, security matters</strong>, (crisis management, non-proliferation of Weapons of Mass Destruction and counter terrorism), <strong>global issues</strong> (climate change, development, humanitarian aid, civil protection, environment), <strong>economic issues</strong> (industrial cooperation, customs, taxation, tourism, competition), <strong>sectorial cooperation</strong> (energy, transport, agriculture, fisheries and maritime affairs), <strong>social policy</strong> (health, consumer policy), <strong>cooperation in the area of justice, freedom and security</strong> (cybercrime, the fight against transnational crime, migration and asylum), cooperation in the fields of <strong>research, innovation, space, education and culture.</strong></p> <p>Since the launch of negotiations, four rounds of negotiations were performed already.</p> <p><strong>ABOUT THE EU-JAPAN ECONOMIC</strong><strong>PARTNERSHIP AGREEMENT (EPA)</strong></p> <p>The Economic Partnership Agreement is negotiated in parallel to the Strategic Partnership Agreement. The agreement between the two economic blocks is expected to boost EU&#39;s economy by 0.6 to 0.8% of its GDP and may create up to 420.000 jobs. It is expected that EU exports to Japan could increase by 32.7%, while Japanese exports to the EU would increase by 23.5%.</p> <p>Japan is the EU&rsquo;s second biggest trading partner in Asia, after China. EU main exports concentrate around the sectors of machinery and transport equipment, chemical products and agricultural products. EU imports from Japan are concentrated on machinery, transport equipment, electronic items and chemical products. Trade in service is also developed, representing almost one third of total trading.</p> <p>Japan is a major investor in the EU (reaching EUR 144.2 billion in 2011). Japan&#39;s inward FDI has increased markedly since the mid-1990s, but remains very low in comparison with other OECD countries (EU investments in Japan were worth EUR 85.8 billion in 2011).</p> <p>Over the last decade, EU international trade in goods with Japan was characterised by a regular fall in the share of Japan in the EU&#39;s total trade in goods, more significant for imports than for exports, and a continuous deficit. The share of exports to Japan in the EU28 total fell from 4.9% in 2002 to 3.3% in 2012 and the share of imports from Japan also dropped, from 7.9% to 3.6%. As a result, the EU trade deficit with Japan decreased from 30.3 billion in 2002 to 9.0 billion in 2012.</p> <p>&nbsp;</p>

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