Speech by H.E. Takekazu KAWAMURA
Ambassador of Japan to the European Union
At the University of Latvia
In Latvia
18 October 2007 

“Japan and the EU: A Valuable Partnership for the future”

Distinguished professors, students, officials, ladies and gentlemen,

At the outset, I would like to express my sincere thanks to the University of Latvia and the Ministry of Foreign Affairs of Latvia, in particular the Vice-Rector for Research, Professor Muiznieks, for organising this event.

As Ambassador of Japan to the EU, I will speak today primarily on Japan-EU relations. As this topic can be quite broad, I will divide it into four parts: a brief history of Japan-EU relations, current Japan-EU relations, Japan's presence in the EU, and Japan-EU partnership in the future.

But before doing so, let me congratulate you for what you have done, especially since 1991. You succeeded quickly in regarding your independence from the former Soviet Union. Since then, your country has taken steady steps towards democratisation as well as economic and social development, as part of European nations. It has been nearly 3 and a half years since your country joined the EU. You are expected to join the Schengen Area by the end of this year and are willing to adopt the Euro in the near future. These are without doubt remarkable achievements and you can be very proud of them.

I would also like to refresh your most recent memories of the good relations between Japan and your country. In May this year, Their Majesties the Emperor and Empress of Japan paid a formal visit to your country, and were fervently welcomed by the people of Latvia, leading to furtherance of mutual understanding and friendship.

The Imperial couple attended flower laying ceremony at the Freedom Monument. They also visited the Occupation Museum and the University of Latvia.

At the political leaders' level, Honourable Prime Minister Kalvitis visited Japan in April last year. It was a big success in cementing the friendly relations between Latvia and Japan.

Furthermore, in June this year, Dr. Artis Pabriks, Minister for Foreign Affairs of your country, following his visit to Japan last year, met again his counterpart in Tokyo, and they agreed, on the basis of the consent of Estonia and Lithuania, to hold a foreign minister meeting among Japan and the 3 Baltic countries, and to arrange the meeting in the near future.

I am confident that bilateral relations will be further deepened on the basis of these conducts.

  I. A brief history of Japan-EU relations

(Government to Government)

In 1983, regular dialogues started to take place twice a year at the ministerial level for foreign affairs. In addition, several ministers initiated discussions in their respective fields.

In 1991, with a view to further promoting these relations, Japan and the EU decided to raise their communication to the highest level; that is to say, to the Prime Minister on the Japanese side, and, on the EU side, to the President of the European Commission and the Head of State or Government of the rotating presidency of the Council of the EU.

This Japan-EU summit has since been held annually, alternating its venue between Japan and Europe. This year, the 16th summit continued the tradition in Berlin.

The Action Plan for Japan-EU Cooperation for the first decade of the new century was adopted at the Japan-EU Summit in December 2001. it is addressing four major objectives: promoting peace and security; strengthening the economic and trade partnership; coping with global and societal challenges, and bringing together people and cultures. We have been reviewing regularly to achieve further progress in its implementation.

In the economic field, the Regulatory Reform Dialogue has been playing a central role. This was started in 1994 and provides a continuous opportunity for two-way consultations on the regulatory aspect in Japan and the EU. Both sides exchange a specific list of proposals annually and have intensive discussion, in order to contribute constructively to the deregulation process in Japan and the EU.

(Interparliamentary)

Japanese Parliamentarians and the members of the European Parliament have been associating as well. Japan-EU interparliamentary meetings started in 1978. Originally, trade matters dominated discussions between the two delegations, but more recently political issues formed increasingly an important part of the discussions. The 28th meeting took place in Japan at the end of this May and the parliamentarians conducted an active exchange of views on the international political and security issues as well as the economic, trade and other cooperation between Japan and Europe.

(On the Business Level)

As for the business aspect of our relations, dialogues between people in the private sector on both sides became active in the early 1980's. Since 1999, these dialogues have taken shape in the form of the Japan-EU "Business Dialogue Round Table", or the BDRT. At the beginning, as with the parliamentarians' debates, trade issues occupied a major part. Subsequently, various other economic issues have emerged on the agenda.

The BDRT furthermore, has been conveying its opinions and suggestions to political leaders of Japan and the EU.

The 9th BDRT was held this June in Berlin. Their recommendations, including the proposal to establish a task force to explore the feasibility of a Japan-EU Economic Integration Agreement, were welcomed by the Leaders of Japan and the EU at the 16th Japan-EU Summit which took place immediately after the BDRT meeting.

(People to People Exchange)

Let me also touch briefly on Japan-EU relations from cultural and social perspectives.

Following the success of the "2005 Japan-EU Year of People-to-People exchanges", which contributed greatly to further personal and cultural exchanges between our people through a number of events, both leaders of Japan and the EU recognised the significance of continuing people-to-people exchanges. The EU welcomed Japan's proposal of the "Framework Initiative for Exchange Networks and Dialogues", also called "FRIEND". This programme is to further promote Japan-EU exchanges targeting young people, experts, EU officials, business people and so on. In particular, with regard to the exchange of young people, upon whom rests the future of Japan and the EU, Japan set a goal of accepting about 4,000 youths a year.

I believe that we should continue to promote such exchanges, in order to strengthen the foundation of our relationship. Without a solid base at the grassroots level, political and economic exchanges would remain merely superficial.

  II. Current Japan-EU Relations

Ladies and Gentlemen,

The world has changed dramatically since the fall of the Berlin wall, and it is still changing. Faced with the changes on the international political stage, Japan and Europe have been trying to adapt as best as we can.

The application of the Maastricht and Amsterdam treaties, for example, has prepared the ground for a more stable Europe. In addition, the introduction of the "Common Foreign & Security Policy" and the "European Security and Defence Policy" has gradually modified Europe's image in the international political arena, the EU extending its engagement from the West Balkans to Iran, and from Central Asia to East Asia.

Japan, for its part, has re-examined its roles and responsibilities in the world. The need for Japan to contribute to peace and stability as well as prosperity not only in Asia but also in the Middle East and other regions has become more accepted in the opinion of the Japanese people.

At the same time, Japan and the EU share fundamental values and principles of freedom, democracy, the rule of law, human rights and a market-based economy.

Nevertheless, it took Japan and the European Union more than ten years after the fall of the Berlin wall, to fully comprehend the need to expand the scope of dialogues on international political affairs.

September 11 only added the importance of our political dialogues addressing, in particular, the threat of terrorism. The weight of the roles for Japan and the EU in the international community is growing, and Japan-EU consultations on international political affairs have become more frequent.

In fact, at this year's 16th Japan-EU Summit in June in Berlin, then Prime Minister Abe, the President of the European Council, German Chancellor Ms. Merkel and the President of the European Commission, Mr. Barroso reaffirmed their desire to further strengthen the longstanding strategic partnership between Japan and the EU.

The leaders also discussed global issues such as climate change, energy, WTO/DDA and development, as well as the international situation in such areas as North Korea, China, Central Asia, Middle East, Iran, Afghanistan and Russia.

On Russia, the Japanese side pointed out the necessity to establish a partnership with Russia based on mutual common strategic interests. The EU side also mentioned the necessity to further develop relations with Russia, too, while the EU should be united in taking actions against Russia. With Russia, Japan has the issue of the Northern Territories, which are inherently Japanese. Japan has been tenaciously engaged in negotiations, in line with a consistent policy of concluding a peace treaty, through resolving the territorial issue. Japan will endeavour patiently toward resolution of the issue, while striving to promote exchanges between the two countries.

I would also like to touch upon here briefly Japan's relationship with NATO. In January this year, then Japanese Prime Minister Abe visited Brussels and met with the Secretary General of NATO. He addressed the North Atlantic Council and stressed that Japan and NATO are partners. As I mentioned, we have in common fundamental universal values. It is only natural that we cooperate in protecting and promoting these values. He, for example, made it clear that "Japan is investing in the future of Afghanistan because its stability is vital to Japan and the world." In the Indian Oceans, Japanese Maritime SDF vessels have been providing fuel to countries participating in Operation Enduring Freedom in Afghanistan, including nine NATO member states. Mr. Fukuda, the new Japanese Prime Minister nominated this September this year, expressed his intention to continue the Maritime SDF' activities in the Indian Ocean and make his utmost efforts to obtain the understanding of the Japanese people and the Diet.

In this connection, I would like to commend your country for sending troops to the International Security Assistance Force, ISAF, in Afghanistan, in order to assist the Afghan authorities in providing security and stability, paving the way for reconstruction.

  III. Japan's Presence in the EU

Now, I would like to talk about Japan's presence in the EU. As the overall relations between Japan and the EU have been developing, Japanese presence is getting increasingly noticeable in the EU.

In spite of Japan's economic situation over the last 15 years, the number of Japanese affiliated companies in Europe has been increasing at a steady rate. The total number of Japanese affiliates in Europe grew from 2,162 in 1996 to 6055 in 2005.

As the number of Japanese affiliates grew, Japanese investment in Europe has grown steadily in recent years, and has reached around 14.7 billion USD in 2006. The corresponding figure to the United States was lower, which was 9.2 billion USD. I should also note that in 2006, the EU's investment in Japan was approximately 4.3 billion USD, considerably greater than the US investment into Japan.

This growth of Japanese investment has also produced employment opportunities in Europe. In 2004, Japanese auto manufacturers alone created more than 200,000 jobs in Europe; almost 40,000 of which were directly related to production, research and development activities.

Although the investment from Japan in your country is yet small, there exists the potential to attract more Japanese business people. Latvia enjoys very high economic growth rate and is often called one of the "Baltic Tigers". Your 2006 estimated growth rate was 11.9 %. This is partly because of abundant human resources of good quality. One of the areas that is worthy of note is IT. According to the 2006 statistics of the ITU, International Telecommunication Union, the number of subscribers of cellular phones per 100 inhabitants reached 95.13 in Latvia, while that in Japan was 79.32.

I just mention also that trade remains one of the important elements in Japan-EU relationship: Japan is the fifth largest source of imports of the EU in 2006 after China, USA, Russia and Norway, while the import from the EU accounted for 10 % of the total Japan's import in the same year.

According to survey concluded in October 2006, there were around 160,000 Japanese nationals residing in the EU 25 Member States, up from about 130,000 in 1997 in then EU 15 countries. Compared to the number of Japanese citizens living in the U.S., which was about 370,000 in 2006, it may not sound striking, but the figure for the EU nevertheless accounts for more than 15 % of the total number of Japanese nationals living overseas. At the time of October 2006, about 1.06 million Japanese people were living outside of Japan.

As the number of Japanese people living in Europe increases, so does the number of Japanese restaurants. At present, there are more than 40 Japanese restaurants in Belgium alone, while in Germany, the number seems to be up to 300. I hope that you will also find more Japanese restaurants in your country in the near future. I should note that the major customers for these restaurants are not only Japanese but also Europeans. The steady increase of Japanese investment in the EU, accompanied by the growth in number of Japanese affiliates/residents, has thus contributed not only to "growth and jobs" in Europe, but also to Europe's cultural diversity.

  IV. Japan-EU Partnership

The final part of my speech is about Japan-EU Partnership in a global context.

1. Cooperation towards peace and stability

As I mentioned earlier, Japan and the EU share fundamental values and principles.

You, the European people, decided to put war behind you and construct a society where the concept of military conflict among the member countries was no longer imaginable. Japan itself renounced resorting to use of force as a solution of international disputes since 1945.

This determination to renounce the use of force is strongly rooted in the Japanese people. With a view to ensuring peace and stability, Japan works closely with the European Union in all parts of the world.

In more concrete terms, then, how do Japan and the EU cooperate? Let me show you a few examples.

(West Balkans)

The European Union is an actor par excellence in West Balkan affairs. It makes great efforts to maintain peace, and foster and re-establish economic and social stability there. Japan contributes to such European efforts by organising and supporting meetings in close collaboration with the EU and by providing technical and financial assistance of more than 1.2 billion dollars to the region thus far.

(Central Asia)

Central Asia is another region of mutual interest.

In June 2006, the Japanese Foreign Minister hosted in Tokyo the 2nd Foreign Ministers' meeting under the "Central Asia plus Japan" initiative. It was two years before that the first ministerial meeting among Japan and the Central Asia countries had taken place in Kazakhstan.

Recognising that the stability and development of Central Asia are indispensable for the peace and prosperity of the Eurasian Continent as well as for the international community as a whole, Japan and the EU also started Strategic Dialogue on Central Asia. The first Dialogue was held in July 2006, and it is continuing.

It is our understanding that the EU is very keen to foster relations with the Central Asia countries, and that the EU's strategy on this region is now being prepared. Japan is looking forward to working closely with the EU in this part of the world as well.

(Iran) In view of the political and economic importance of Iran, Japan and the EU maintain close consultation with one another to explore solutions to the critical nuclear issue, and sustain world stability in this context.

(Asia) The fourth example is our cooperation in Asia. All eyes are focused on the economic dynamism of Asian countries such as China, India as well as most of the ASEAN countries. The region, however, is not without some security and political problems and challenges, such as the Korean Peninsula and Taiwan issues, legacy of the cold war era. We, Japan and the EU, therefore, are engaged in close dialogues on East Asia and other issues in Asia.

At the Japan-EU Summit in 2005, the leaders agreed to hold Strategic Dialogue on the East Asian security environment. The first meeting of this Dialogue was held in September 2005. Since then, already the fifth meeting is scheduled to take place in the very near future. The EU countries used to regard Asia mainly as an economic market. Through broader Dialogues, however, the EU has come to understand and grasp more deeply the political and strategic situations of the Asian region, which will have important implications in relation to the peace and stability of the whole world.

2. Common Issues: global and internal

Japan and the EU face other common challenges. Some are global, and others are about our respective societies.

(Global issues)

Poverty still plagues the world. To fight against such suffering, technical and financial assistance will continue from both Japan and the EU through more and better consultations. Environmental issues have also repeatedly been on our common agenda, and we are currently working closely together on a wide range of issues from climate change to energy efficiency. We are also working together on issues that range from the fight against terrorism to the proliferation of weapons of mass destruction and avian influenza to other infectious diseases. At the Japan-EU Summit in June in Berlin this year, the Leaders expressed the view that a long-term goal for reducing global greenhouse gas emission by half or more by the year 2050 needs to be established. Japan and the EU played a leading role at the G8 Summit in Heiligendamm in formulating the consensus on the global climate change issue.

(Internal Issues)

In addition to these world-wide issues, when we look at our own societies, we also find many issues in common. For instance, Japan and some of the EU Member countries are faced with rapidly aging societies, accompanied by extremely low birth-rates.

This implies a possible decrease in economic capacity if appropriate measures are not put in place. In this context, we can share experiences and learn from each other

 V. Conclusion

Ladies and Gentlemen,

Before concluding my presentation, let me express my views on the EU and the future cooperation between Japan and the EU.

I am one of those who believe in a strong, more united and integrated Europe in this globalised and multi-polar world. I say this not only because the EU has been so much growing in terms of integration and expansion, but Europe possesses substantial knowledge and experience gained from its long history. To achieve a balanced, stable and prosperous world, the role of the EU is indispensable. The agreement on climate change reached at the Spring European Council was a good example to prove such an important role to be played by Europe.

It goes without saying that the EU is not just an international organisation such as NATO or the United Nations. The differences lie in that the EU's decisions affect directly and immediately the daily lives of the people of the member countries. Your safety and security, tackling organised crime and immigration issues are all dealt with by the EU. Your budgetary deficit is scrutinised by the EU. In short, areas which directly interest the citizens are handled by the EU. As a result, a member country receives great benefits from being a part of the EU.

At the same time, the EU cannot fulfil its role unless all Member States act in concert in both political and economic domains. It is essential that there is a strong and integrated Europe whose voices are united. It is also vital that political leaders in all Member States make efforts in disseminating and sharing new visions and ideals of the EU with their own citizens. The member countries are expected to meet challenges and fulfil obligations that accompany its membership as well. I believe that some economic and social reforms may prove to be painful. But, for instance, your country's actions through the EU gain resonance in the long-term for a better Europe.

Japan too has a global role to play, and that role is very often in step with the EU. Japan will continue to commit itself to further developing the important and desirable cooperation with such a strong and unified Europe, although on occasion this may not be easy. I believe, however, that our partnership should continue to evolve, to meet the challenges of today.

Next year, Japan is to host two important meetings: the fourth Tokyo International Conference on African Development, TICAD IV, in May, and the G8 Hokkaido Toyako Summit in July. In order to tackle the imminent issues of common interest such as climate change and African development, Japan and the EU can continue and further deepen their cooperation, for the realization of a low-carbon society with innovative energy-saving technologies, as well as a "Vibrant Africa" of greater hope and opportunity.

Thank you for your attention.