“The EU and Japan as Strategic Partners”

Speech by H.E. Takekazu KAWAMURA
Ambassador of Japan to the European Union
At the Trans European Policy Studies Association
(TEPSA) International Conference
On 27 November 2006

Good afternoon, ladies and gentlemen,

First of all, I would like to extend my sincere thanks to Professor Franck (UCL), Professor Remacle (ULB), Professor Telo (ULB) and Professor Ueta (ICU), for their joint efforts in organising this event.

It is a great pleasure for me to be able to address the TEPSA international conference again, and share views with you.

For this second session of the conference, I was given the theme of “the EU and Japan as strategic partners”. I will focus my intervention on the Japan-EU partnership in tackling global challenges.

As one year has passed since I was appointed as Ambassador to the EU, I have come to realise that people in Europe no longer talk about “Japan” or “Japanese economy” as they used to do. Japan is no longer a miracle, or a threat. Instead, Japan is a global partner of the EU. Both Japan and the EU understand the benefits of multilateralism, and share fundamental values such as democracy, market economy, the rule of law, and human rights. As global partners, Japan and the EU have been making serious efforts in tackling global problems and challenges from similar, if not identical, perspectives for the same goals.

Such strong Japan-EU partnership can be seen in various areas. I would like to touch upon four areas, namely, intellectual property rights, climate change, energy, as well as security in East Asia and Central Asia, as concrete examples to demonstrate how we are strategic partners.

  I. Intellectual Property Rights

1. Protection of Intellectual Property Rights

The protection of Intellectual Property Rights, or IPR, is one of the major global concerns.

IPR issues vary from harmonisation and quality to enforcement. Particularly high on the Japan-EU agenda are counterfeiting and piracy. Counterfeiting and piracy weaken the motivation for innovation and creativity, and undermine competitiveness. They might also threaten the health and safety of consumers. Fake Gucci bags or songs of Britney Spears copied without licence are few examples.

In the year 2005, Japanese Customs seized more than one million counterfeit and pirated goods. In the same year, EU Customs seized more than 75 million such articles. The damage has been increasing as more sophisticated technology has become readily available and distribution has become easier, by a wide usage of the internet, for example.

Against such a background, at the 2006 G8 Summit, the leaders adopted a statement on “Combating IPR Piracy and Counterfeiting”. It gave priority to such actions as (i) promoting and upholding laws, regulations and/or procedures to strengthen IPR enforcement, (ii) raising awareness in civil society and in the business community of legal ways to protect and enforce IPR and of the threats of piracy and counterfeiting, and (iii) providing technical assistance in that area to developing countries. The leaders also agreed that close cooperation between law enforcement agencies, including customs authorities, is of great importance.

2. Efforts in Japan and the EU

Both Japan and the EU have been actively engaged in IPR protection and enforcement.

(1) Japan

In Japan, with the economic recession continuing after the collapse of the so-called bubble economy, awareness has been widely shared since the late 1990s, that Japan should take nationwide measures to create, protect, and use intellectual property so as to revitalise its economy.
Prime Minister Koizumi, in his policy speech at the Diet in February 2002, set a national goal to strategically protect, and utilise, the results of research activities and creative endeavours as intellectual properties, and to enhance the international competitiveness of Japanese industries. His speech was followed by the establishment of the Strategic Council on Intellectual Property in March 2002, and the Intellectual Property Policy Headquarters in the Cabinet in March 2003. One of the noteworthy developments the Headquarters promoted is the establishment in April 2005 of the IP High Court, with a view to reinforcing the dispute resolution function, and to proclaiming the national policy that intellectual property was one of the top priorities.

The “Intellectual Property Strategic Program 2006”, announced by the Headquarters in June 2006, is to promote such actions as (i) achieving early adoption of an international Treaty on the Non-proliferation of counterfeit and pirated goods; (ii) strengthening measures against, and cooperation with, countries and regions where infringements have been exposed; (iii) reinforcing countermeasures in foreign markets through cooperation with the United States and Europe; (iv) tightening regulations at the national borders, and in the country; and (v) strengthening cooperation between public and private sectors.

(2) The EU

The EU, on its part, set a strategic goal in 2000 to become “the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion”.
In 2005, the EU presented an Action Plan to combat counterfeiting and piracy. In order for Customs to tackle counterfeit and pirated goods more effectively, for example, the Action Plan sets forth a package of measures to (i) increase Community level protection through improved legislation and operational controls; (ii) strengthen the customs/business partnership; and (iii) reinforce international cooperation in this area.

3. Japan-EU Cooperation

Japan and the EU have been engaged in various cooperation on the counterfeiting and piracy issue.

The 2004 Japan-EU Summit adopted the “Japan-EU Joint Initiative for the Enforcement of IPR in Asia”. This initiative was to strengthen our cooperation for combating counterfeiting and piracy goods in Asia. It focused on, among others, (i) closely following-up Asian countries’ progress in the fight against counterfeiting and piracy, and (ii) exchanging information on technical cooperation projects. Subsequently in October in the same year, an EU-Japan IP Seminar was held in China.

In October 2006, in support of the EC’s approach on IPR enforcement in the WTO Council of the TRIPs (Agreement on Trade-Related Aspects of Intellectual Property Rights), Japan, together with the EC, the US and Switzerland, presented a Joint Communication on IPR enforcement to the TRIPs Council. The purpose of this communication is to anchor the enforcement issue in the TRIPs Council debate and serve as a basis for further substantive discussions.

Japan-EU cooperation in IPR protection and enforcement is also active at the business level. In February 2005, senior representatives from the US Chamber of Commerce, the IPR Protection Forum from Japan, UNICE, and the International Chamber of Commerce met in Brussels to discuss how they could work closely together to address the growing global threat of counterfeiting, piracy and IPR violations. Announcing a declaration, they agreed to join efforts to further cooperate and develop coordinated actions to address this issue.

  II. Climate Change

1. Commitment to Reducing CO2 Emissions

Climate Change is another global concern. As regards the CO2 emissions, Japan accounted for 4.9 % of the total global emissions in 2003, while the EU 15 Member States emitted 13.6% of the CO2 in the world. (The US accounted for 22.8%, China for 16.4%, Russia for 6.3% and India for 4.3%, respectively)

Under the Kyoto Protocol, which is an agreement made under the United Nations Framework Convention on Climate Change, and entered into force in February 2005, Japan agreed to reduce its emissions of greenhouse gases during the 2008 to 2012 period by 6% below their 1990 levels, and the EU 15 Member States by 8%.

2. Efforts in Japan and the EU

The Government of Japan adopted the “Kyoto Protocol Target Achievement Plan” in 2005. It is considered not easy for Japan to reach this goal as Japan had already made considerable progress in energy conservation at the time of 1990, and the reduction, according to the Protocol, is to be measured against the base year of 1990. Nevertheless, based on this Plan, the Government is making every effort to achieve the Kyoto’s 6% reduction target through a series of measures. These measures include: making social and economic systems, including transportation infrastructure, more environmentally friendly; reducing the volume of waste materials; and facilitating forestation and reforestation.

The EU established the European Climate Change Programme (ECCP) in 2000, with the aim of meeting its target of reducing emissions under the Kyoto Protocol. Since then, the EU and Member States have been initiating a series of measures to cut greenhouse gas emissions both at the national and EU levels. In January 2005, the EU became the forerunner worldwide in initiating the EU-Emission Trading Scheme. With this system, large industrial companies exceeding their CO2 emissions quota are allowed to buy additional allowances from more environmentally friendly companies, in order to release excessive emissions.

3. Japan-EU Cooperation

About a week ago, meetings of the United Nations Climate Change Conference were held in Nairobi. (6- 17 November, the 12th session of the Conference of the Parties to the UN Framework Convention on Climate Change and the second meeting of the Parties to Kyoto Protocol)

Post-2012 was discussed during the meetings, and a detailed work plan was decided. Japan and the EU are one in that it is essential for all major players, including the United States, China, and India, to join our efforts in reducing CO2 emissions globally. We will continue to explore ways and means to realise our common objectives, sharing our views and experiences.

  III. Energy

Discussions here in Europe centre particularly on energy these days. This year, the Commission published a “Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy” in March. Subsequently in October, it released an “Action Plan for Energy Efficiency”, and set a goal of saving 20% of the energy by 2020. Behind these actions is the energy security issue, the importance of which was highlighted over a concrete case between Russia and Ukraine earlier this year. Members of the EU were reminded of the significance of cooperation among themselves, and dialogue with energy producing countries.

1. The Energy Policy of Japan

(What is Japan doing in the meantime?)

Three months after the Commission presented its Green Paper on energy, in May, the Japanese government announced a “New National Energy Strategy”. The principles of this Strategy, among others, are (i) to maintain and further develop a state-of-the-art structure of energy demand and supply, and (ii) to strengthen international cooperation in both energy and the environment.

(1) State-of-the-art demand/supply structure

The “state-of-the-art” demand/supply structure would require the improvement of energy efficiency; and diversification of energy sources in both source and country. Discussions on diversification are old and familiar. Let me talk a little about energy efficiency.

(Energy efficiency)

Japan has made considerable progress in energy efficiency. The first energy crisis in 1973 urged Japan to establish appropriate energy conservation measures. Japan’s use of energy has become highly efficient, compared with other leading industrialised countries. To give you an idea, when Japan’s energy consumption (crude oil equivalent in kiloliters) per real GDP is set at 1, Germany’s consumption per real GDP is 1.7, France 1.9, United Kingdom 1.4 , and the United States 2.7 (2005 OECD figures).

Furthermore, that of (Cf. Russia is 19.7, China 9.6 and India 9.6 while the world average 3.0)

Japan’s current level of energy use efficiency is approximately 37% improvement since the Oil Shock of 1973. In the May Strategy, the Japanese government has adopted the “Energy Conservation Front-runner Plan”, and set forth a goal of further improving the energy consumption efficiency by at least another 30% by 2030, through technological innovations and changes in social systems (e.g. road networks).

(Energy innovation)

Japan is actively engaged in R&D for efficient and environmentally friendly use of energy resources. One such example is R&D and dissemination of liquefaction technology of natural gas, which will enable expanded and more environmentally friendly use of natural gas. These new liquid fuels, called gas-to-liquid, or, GTL, and dimethyl ether, or DME, are expected to provide fuel for transport and industry in the future.

Another technological development that Japan and other advanced industrialised nations, including members of the EU, are engaged in is called “clean coal technologies”, and these will reduce the adverse environmental impact of using coals.

(2) Cooperation on energy and environment in international frameworks

The National Energy Strategy stresses the importance of an integrated approach towards energy and the environment. As regards energy, the Strategy emphasises the importance of dialogue and cooperation through such international frameworks as the International Energy Agency (IEA) and the International Energy Forum (IEF).

One of the critical issues in this respect is the continuation and expansion of investment in energy producing countries such as Russia and the Middle East countries. Trade, transit and investment are all important issues for a stable supply of energy. In this regard, let me also mention another international framework, the Energy Charter Treaty that addresses all these three issues.

On November 20th, fifty-one member countries and the EC of the Energy Charter Conference elected me as Chairperson of the Conference, beginning in January 2007. I wish to commit myself to serving the interests of global energy security.

2. Japan-EU Cooperation

(1) Common positions

Japan and the EU are both committed to the Kyoto Protocol, the reduction of greenhouse gas emissions. We are seriously engaged in R&D on energy conservation and new energy, and in their actual introduction into the market. Both Japan and the EU are working on the liberalisation of electricity and gas markets.

(2) Sharing each other’s experiences

Europe started such areas as the liberalisation of electricity and gas markets, and the introduction of non-fossil fuel, or bio-fuel, such as bio-ethanol and Bio Diesel Fuel, earlier than other industrialised countries. In this respect, Japan can draw upon European experiences.

At the same time, Europe could learn from Japan’s experience in importing LNG (liquid natural gas). In addition, as oil prices rise, Europe has started re-evaluating coal. One day in the future, Japanese experience in developing “clean coal technologies”, might be of some use in Europe.

As global partners sharing common views and perspectives on energy, I am certain that Japan and the EU could further reinforce our energy cooperation.

  IV. Japan-EU strategic dialogues in East Asia and Central Asia

The EU plays an increasingly important and responsible role for peace and stability, as well as for prosperity, within the international community. The political and economic evolution in East Asia is thus a subject of particular interest to the EU.

The basic strategy that guides all EC actions in Asia is contained in the 2001 Commission Communication entitled ‘Europe and Asia: A Strategic Framework for Enhanced Partnerships’. The basic strategy endorsed by the General Affairs Council identified six objectives. One of them is to contribute to peace and security in the East Asia region and globally, through a broadening of the engagement with the region.

You can see examples of such European engagement in Ache, Sri Lanka, and the Korean Peninsula, to mention a few.

At the 2005 Japan-EU Summit, the leaders agreed that strategic dialogue between Japan and the EU on security in East Asia should be enhanced. The agreement coincided with the period when the discussion in Europe was centring on the lifting of arms embargo against China.

Four months later, in September 2005, the first Japan-EU Dialogue on the East Asian Security Environment was held in Brussels.

It cannot be denied that, until recently, there was a strong tendency in Europe to regard East Asia mainly as an economic market. There was not enough understanding as to the security situation in the region. East Asia is not without some security and political problems and challenges. Furthermore, the Cold War may have ended with the fall of the Berlin Wall in 1989, but remnants of that period persist at the other end of the Eurasian Continent, most notably on the Korean Peninsula. One of such examples was the nuclear test conducted on October 9th by North Korea, which is still under the typical, Cold War era, dictatorial communist regime. Through our dialogues, however, the EU has come to better understand the security situation in East Asia.

Realising the importance of continuing such a dialogue, and reaffirming our desire to strengthen the partnership between Japan and the EU, at the Japan-EU Summit in April of this year, the leaders again endorsed enhancement and continuation of the dialogue. The second Dialogue was just convened in June 2006 to the satisfaction of both sides. At the Summit, the leaders also recognised Central Asia as the region of mutual interest, and agreed to develop a similar dialogue on this part of Asia, which took place in July 11th this year.

As strategic partners sharing values, interests and concerns, Japan and the EU should continue to work closely in this part of the world for global peace and security.

  IV. Conclusion

　

The areas of Japan-EU cooperation that I have touched upon today were just a few examples. As global partner tackling issues of IPR, climate change, energy, and security in Asia, it is increasingly important that Japan and the EU further deepen our dialogues and share our experiences and information.

In this respect, exchanging views and knowledge through symposiums and conferences like today’s TEPSA conference, is crucial. As Ambassador of Japan to the EU, I hope to be the one who will continue to contribute to further facilitating Japan-EU cooperation.

Thank you for your attention.