EUROPEAN PARLIAMENT 2009 - 2014

Delegation for relations with Japan

REPORT

of the 34th EU/JAPAN Interparliamentary Meeting

Tokyo & Miyagi 11-15 February 2013 Introduction

A delegation of thirteen members of the European Parliament's delegation for relations with Japan travelled to Tokyo and Miyagi Prefecture from 11 to 15 February 2013. The delegation was headed by the Chair, Mr Hans van Baalen (ALDE, Netherlands) and included the rapporteur on the EU-Japan Framework Agreement, Mr Alojz Peterle (EPP, Slovenia)

The visit came shortly after the December 2012 parliamentary elections for the Lower House and in the run-up to the 21st EU-Japan summit on 25 March 2013. Following the summit, negotiations will be formally launched between the two sides on a political framework agreement (FA) and a free trade agreement (FTA) - called the Economic Partnership Agreement (EPA) by the Japanese side. The visit also came at a time of continuing tensions between Japan and China over the Senkaku Islands (Diaoyu to the Chinese side) and coincided with the announcement by the North Korean government of a successful underground nuclear test. Finally the visit took place almost two years after the Great Eastern Earthquake of 2011 and members visited some of the locations that had been most affected.

Thematic summary of the visit

EU-Japan relations

The vast majority of speakers on both sides were in favour of achieving a "strategic and comprehensive" FA and FTA. they agreed that a successful trade agreement would help the EU-Japan relationship to live up to its full - and untapped - potential - and contribute to boosting global economic recovery. There was recognition that there were particular "sensitive" issues such as a number of non tariff barriers in fields such as public procurement, which required careful handling. The change in the government in Japan did not appear to have diminished Tokyo's strong wish to reach a deal.

The EP side stressed the need to link the negotiations on the FTA/EPA to the pre-existing EU-Japan Science and Technology Agreement in order that its potential might be fully exploited. Areas for heightened cooperation included increased contacts between universities and research institutes in such fields as the promotion of healthy and active ageing and cancer research. Renewable energy was an area which both sides regularly cited as a particular area in which collaboration might be expanded.

Several speakers on the Japanese side argued that the ACTA agreement had represented a valuable step towards protecting intellectual property rights and expressed disappointment at its rejection by the European Parliament. MEPs explained the context of the vote - particularly the lack of information which they had received - nevertheless they agreed that it was essential to provide proper protection to intellectual property and that the issue needed to be revisited.

There was agreement that the Framework Agreement would complement the FTA by promoting deepened cooperation between the two sides, enabling them to respond more effectively to global threats such as terrorism and nuclear proliferation. Both Japanese and European speakers referred to the common values of democracy and respect for human rights that bound the two sides and which would strengthen any agreement.

-2/25- CR\930219EN.doc PE 503.485v01-00 Internal developments in Japan

Although the new LDP government had a substantial majority in the House of Representatives it did not currently have a majority in the House of Councillors and there was therefore a "twisted government system" that was typical of countries with bicameral systems.

MEPs were informed that there was currently no definite policy to revise the Japanese Constitution, although there had been hints by the Prime Minister of a reinterpretation of Article 9 - which stipulates that Japan has renounced the use of force as a means to resolve international disputes - in order that Tokyo might exercise its right to collective self defence. There had also been discussion about the revision of Article 96 which sets out the rules for revising the constitution.

The EP delegation was interested to learn about the new economic policy of the Japanese government - commonly known as "Abenomics". In an attempt to combat deflation - which the government has declared to be the biggest hurdle to efforts to boost domestic consumption - the central bank had doubled the inflation target to 2% by a policy of monetary easing. The policy had led to a fall of around 20% in the value of the yen against the euro since November 2012 and a 20% increase in the Nikkei index. Some concerns were expressed on the Japanese side that the devaluation of the yen risked setting off a currency war with Japan's competitors.

The closure of the nuclear power plants following the meltdown at Fukushima had resulted in Japan importing increased volumes of fossil fuel based energy - often from volatile parts of the world. There was debate in Japan over the future of nuclear energy with some speakers contending that the necessary lessons had been learned and that safety procedures would be much tighter in the future. It was clear that a major question mark now hung over the plan of the previous government to phase out all nuclear plants by the 2030s. Nevertheless, there was general agreement on both sides that there was a real need to develop renewable energy, such as solar power and wind energy.

There was discussion of the problem of ageing in both Japan and in the EU. Both sides strongly supported the promotion of healthy and active ageing, such as encouragement of voluntary activities and improvements in accessibility.

The EP side briefed their Japanese interlocutors on the current political and economic situation in the EU. There was recognition of the role played by Japan in assisting the EU through its contributions to the International Monetary Fund and its European Financial Stability Facility and European Stability Bond purchases.

Japan's relations with its neighbours

The visit coincided with the ongoing differences between Japan and China over the Senkaku/Diaoyu Islands. One Japanese interlocutor described relations between the two countries as being the worst since 1945. EP members stressed the need for a peaceful resolution of the dispute. The EP Chair stated on a number of occasions his personal belief that Japan had a cast iron case in international law concerning its ownership of the islands. It was agreed that it was essential to keep open channels of communication between the two sides and for China to play a responsible role as a world power. The EP

-3/25- CR\930219EN.doc PE 503.485v01-00 side cited a number of territorial disputes in the EU which had eventually been resolved by peaceful negotiations and - where necessary - international arbitration. On the second day of the visit North Korea announced that it had carried out a successful nuclear test, which prompted Japan to call for an emergency meeting of the United Nations. Both sides were deeply concerned at the news from Pyongyang and stressed the need to take decisive steps to prevent nuclear proliferation in the region. China should also be playing a positive role as the only country with any real influence over North Korea. The EP side raised on several occasions the issue of the Kono Declaration of 1993 in which Japan had apologised to the comfort women in the Second World War and admitted responsibility. MEPs were informed that Prime Minister Abe supported the "basic direction" of the declaration but that a new forward-looking statement to complement the Declaration might be issued, which was "more appropriate for a new era". The EP Delegation stressed that history should not be revisited and that the Kono Declaration must not be diluted. Japan was still considering whether to join the negotiations on the Trans Pacific Partnership (TPP) and was monitoring the situation. Opposition to this was most vocal from farmers who were concerned that the removals of tariffs would have a negative effect on Japanese agriculture.

Visit to Miyagi Prefecture

The delegation travelled to the Miyagi Prefecture, which had suffered much devastation and loss of life following the tsunami in March 2011. MEPs were deeply struck by the resilience shown by the Japanese during the catastrophe and the very impressive reconstruction that had subsequently taken place. On their side, the Japanese expressed their gratitude to the EU for the solidarity shown during the disaster and the subsequent support. They stated on many occasions how much they appreciated the fact that the EP delegation had visited some of the most stricken areas.

Monday 11 February 2013

Monday 11 February 2013 was a public holiday in Japan (Foundation Day). Members attended a briefing session hosted by the Head of the EU Delegation to Japan, H.E. Mr Hans Dietmar Schweisgut, followed by a buffet reception attended by representatives of the diplomatic community, the European Business Council and MP Kosuke Hori, Chair of the Japanese Diet delegation.

Tuesday 12 February 2013

10.00 – 10.45 Courtesy call on MP Bunmei Ibuki, Speaker of the House of Representatives

-4/25- CR\930219EN.doc PE 503.485v01-00 Mr Ibuki briefly outlined the current political and economic situation in Japan. He noted that Prime Minister Abe's main aim was to boost the economy and raise employment levels. He noted in particular that there was internal debate over the appropriate level of exchange rates for the yen. The new LDP government did not currently have a majority in the House of Councillors and there was therefore a "twisted government system", which was typical of bicameral systems.

Mr Ibuki considered that the EU was experiencing an "epoch making period" in which the need to tackle the euro crisis had raised fundamental questions about the extent of national sovereignty. The EP delegation noted that fiscal policy was still a member state prerogative. The situation in the EU had a huge impact and MEPs underlined the importance of promoting international trade in order to boost the global economy. They also emphasised the need to deepen the EU's internal market with regard to public procurement and stressed the need for Japan to ensure its market was open to imports from the EU.

Deputy Speaker and former Agriculture Minister Akamatsu underlined that the EU and Japan needed to conclude the FTA at an early date. It was important to accept that both sides had their "sensitive issues" and recognition of this fact would lead to successful negotiations. He pointed to the example of the EU-South Korea FTA which had led to positive results.

This meeting was followed by a visit to the plenary chamber of the House of Representatives.

11.00 - 11.30 Courtesy call on MP Kenji Hirata, President of the House of Councillors

Mr Hirata underlined the gratitude of Japan for the EU's support at the time of the Great Eastern Earthquake. He noted the current challenges posed by the "twisted parliament" and the territorial issues between Japan and its neighbours.

MEPs responded with examples of how EU member states had addressed these various issues. Examples cited on the constitutional issue included the Netherlands where different political majorities in the two chambers had led to deal making. In Hungary there was a unicameral system, whereas in Romania the proposal to abolish the Senate had not been approved in a referendum. The EU had a type of bicameral system in the form of the Council and the Parliament in which tight deadlines helped to focus discussion and achieve results. However, these time pressures did not always lead to the best settlements.

Regarding differences over borders, the case of the dispute between Slovenia and Croatia was mentioned and it was noted that both sides had agreed to binding arbitration. Other cases mentioned were the dispute between Ukraine and Romania over the Snake Island, which was referred to the International Court of Justice; the Falkland Islands dispute; and the minority policies of Italy and Finland.

Lunch hosted by MP Shunichi Suzuki, Parliamentary Senior Vice Minister for Foreign Affairs

-5/25- CR\930219EN.doc PE 503.485v01-00 Discussion during lunch focussed on the current political and economic situation in Japan; the North Korean nuclear test; the situation of the "comfort women"; the territorial dispute with China; and EU-Japan relations.

In particular, the meeting coincided with the announcement by the North Korean state media of a successful underground nuclear test. This was to lead to an emergency United Nations meeting at the request of Japan. Japanese speakers at the lunch noted that the hopes for a change of policy by North Korea, following the advent to power of Kim Jong-un, had not materialised.

The Japanese side noted - inter alia - the following:

 the new government was a "crisis management administration", which was pursuing a policy of "aggressive fiscal measures and economic easing";

 they very much appreciated the visit by the MEPs to the disaster affected areas;

 there was currently no policy to seek a revision of the constitution, including Article 9 (which prohibits an act of war by the state) - there was a wide variety of opinion over whether this article might be reinterpreted;

 Prime Minister Abe had stressed that he supported the "basic direction" of the Kono Declaration on the comfort women and there would be no revision of this position; however he may issue a "new statement (that was) appropriate for a new era";

 the Japanese government was still considering whether to join the Trans Pacific Partnership (TPP) and was monitoring the situation;

 the EU-Japan political and trade agreements were important for the whole world and were strengthened by the common values shared by the two sides. the importance of cooperation in renewable energy was stressed;

 there was general agreement that the territorial disputes with Japan's neighbours - and indeed all disputes in the region (e.g. between Beijing and Taiwan) needed to be resolved in a peaceful manner through cooperation in an international security framework.

15.30 Preparatory meeting between Chairs and Vice Chairs of the EP and Diet delegations

The meeting involved a discussion of the agenda for the formal interparliamentary meeting.

16.00 Visit to a budget committee meeting at the House of Representatives

The MEPs attended a session of the budget committee - which is a rare event for a foreign delegation. Prime Minister Abe, Vice Prime Minister Aso and other ministers were present. They were greeted by a standing ovation by all those present.

-6/25- CR\930219EN.doc PE 503.485v01-00 16.30 Meeting with Minister for Health, Labour and Welfare, Mr Norihisa Tamura

In his welcome Mr Tamura referred to his pleasure that the upcoming EU-Japan summit was likely to be followed by the launch of the FTA/EPA negotiations.

On behalf of the delegation Mr Harbour welcomed the Minister's comments and raised three specific issues:

 the importance of Japan having an input into the current consultation process by the European Parliament on the revision of the EU rules on medical devices and pre-clinical trials, thereby facilitating mutual recognition between Japan and the EU;

 the need to link the work on the FTA/EPA to the EU-Japan Science and Technology Agreement and thereby exploit its potential more fully, especially among universities and research institutes and also to cooperate in a more structured manner in such areas as healthy and active ageing;

 thanks to Japan for opening its market to French and Dutch beef, while stressing that it was important to be extended to other member states.

Mr Tamura noted that Japan would follow the consultations on the EU rules on medical devices and pre-medical tests. It would also play a constructive role on other non tariff barriers, such as beef imports. Healthy ageing was a very important issue in Japan and should also involve the prevention of illnesses.

The Chair also raised the issue of the "comfort women" and advised the Japanese government not to "revisit history". It should not be seen to be diluting the Kono Declaration. Mr Tamura stressed that this was a very sensitive issue in Japan and Prime Minister Abe would consider what should be the most appropriate action to take. He agreed to convey the EP's concerns to Mr Abe.

The day's programme concluded with a dinner hosted by the Chairs of the two Japanese houses of Parliament.

Wednesday 13 February 2013

09.00 34th EU-Japan Interparliamentary Meeting 1st Working Session

Opening remarks

In his opening statement Mr Kosuke Hori stressed the importance of securing an ambitious EU-Japan Framework Agreement/Free Trade Agreement (FA/FTA). He underlined the ties that bound the EU and Japan, such as shared values and a market economy. He pointed to the common threats, including terrorism in Algeria and the North Korean nuclear test and stressed the need for the relationship to deepen.

-7/25- CR\930219EN.doc PE 503.485v01-00 Mr van Baalen thanked Mr Hori and congratulated him on becoming Chair of the EU Friendship group. He passed on his condolences to Mr Hori's predecessor, Mr Hatoyama, whose mother had died that week. Mr van Baalen also underlined the importance of the FA/FTA and stressed that boosting trade would help to bind the two sides together.

1. Political and regional situation in Japan and the EU

1.1. Political situation in Japan

Mr Seishiro Eto referred to the "twisted house" in which the government had a stable majority in the lower chamber but was in a minority in the upper chamber. He pointed to the government's policy of promoting stable growth through fiscal reform, administrative reform, and budgetary expansion. He outlined the territorial issues that had led to problems between Japan and some of its neighbours and stressed the need for Japan and the EU to work together to contribute to global peace and stability.

Mr Kenji Kosaka gave details of the December 2012 election results in which the LDP had won 291 seats and its ally, the Komeito party, had secured 31 seats. The new government had set an inflation target of 2% and its economic strategy had already led to a 20% increase in the Nikkei index and depreciation of 16% in the value of the yen since the December election. The current budgetary process should be finished by the end of March. It was important to have a stable majority to tackle the many challenges facing the country.

Mr Kosaka also noted that Prime Minister Abe's upcoming summit with President Obama would address the issue of US forces in Okinawa; a possible start of discussions on Japanese accession to the Trans Pacific Partnership (TPP); and relations with the Korean Peninsula and China. He concluded by asking for European support for Japan's bid to host the 2020 Olympic Games.

Mr Shu Watanabe stressed that the DPJ (to which he belonged) had done everything it could while in government to tackle the issue of North Korea's nuclear programme. He also referred to the abductions by Pyongyang of citizens of Japan and other countries. Many of those abducted were children who were turned into DPRK agents. There were also instances in North Korea of public executions without trial. Mr Watanabe stressed the need for a clear international response to tackle the problem of a country which was "a common enemy to all of us". He referred to a brochure on the issue that had been handed out and asked for MEPs' support.

Mr Shinkun Haku noted that he had a Korean father and was the only member of the Diet who could read Korean. He also referred to the importance of cooperation with the EU to deal with problems concerning North Korea, particularly the nuclear standoff and the abductions. He underlined the need for Japan and South Korea to resolve the Takeshima/Dokdo territorial dispute through international arbitration. A brochure on the issue had also been distributed.

Mr Shinji Oguma outlined the situation in his Fukushima constituency in which there were still 160,000 displaced people and 60,000 had fled. Many people were working in reconstruction. Although there were very low levels of radiation, there were harmful rumours about the level of contamination in the area and there was discrimination against

-8/25- CR\930219EN.doc PE 503.485v01-00 food products from Fukushima. An invitation to the freestyle ski World Cup in Inawashiro (Fukushima) in late February was distributed.

Mr Belder highlighted the threat posed by China and asked about the role the Japanese Diet might play in de-escalating the situation. He also referred to the recent Algerian hostage crisis in which several Japanese citizens had been killed and noted the different role played by the Japanese Self Defence Force (SDF) in protecting the country's citizens abroad.

Mr Kiyohiro Araki of the Komeito Party contended that Sino-Japan relations were at their worst point in the post-war period. There was no doubt that the Senkaku Islands belonged to Japan, however it was vital to maintain dialogue and his party's leader, Mr Yamaguchi, had proposed a summit. The new government had established a committee to assist Japanese citizens abroad through more rapid gathering and provision of information. Although he considered it to be important to keep the peace constitution, he noted that there could be a revision of the SDF legislation. He stressed that it was essential to build up Japan's defence capabilities and to increase the defence budget after years of decline.

Mr Kosaka noted that he regularly went to China and had been received by a Vice Minister during his private visit in January. He stressed the need to keep open paths of communications and to highlight the beneficial aspects of the Sino-Japanese relationship. He referred to the role that could be played by parliamentarians from Japan and China to promote exchanges and mutual understanding. Nevertheless, he stressed, China had raised tensions in the area and had to be made aware of the risks. He also pointed to the restrictions placed under Japanese law on the SDF forces in the recent Algeria hostage crisis (the SDF planes had not been allowed inland and the SDF ships had to remain in harbour). There was therefore a need for constitutional changes.

Mr Fujita referred to the territorial disputes in Europe and noted that countries such as France and Germany had agreed never to use force.

Mr Gollnisch stressed that France and Germany had gone to war three times in 70 years but were now friends. He referred to other territorial disputes in Europe such as the case of the "Anglo-French" islands, which had been considered by the International Court of Justice; and the dispute over Andorra between France and Spain. In his view Japan had a very strong case in all its territorial disputes with its neighbours.

Mr Zasada referred to Poland's territorial disputes with its neighbours and the differences between Cyprus and Turkey. He stressed the need for all sides - in Asia and Europe - to avoid military conflict. Mrs García-Hierro recalled the differences between the United Kingdom and Spain over Gibraltar and stressed that it was important not "to return to the times of the Crusades and the use of force" in territorial disputes.

Mr van Baalen stressed that, in his personal view, the claim of China to the Senkaku Islands was unfounded. China was at liberty to take its case to the International Court of Justice and he was confident that Japan's position would be vindicated. He noted, too, that the key to a resolution of the problems relating to North Korea lay in Beijing and that China needed to play a constructive role and become a "normal state" in Asia. He referred to the experiences of Poland and Germany and Germany and the Czech Republic

-9/25- CR\930219EN.doc PE 503.485v01-00 where the study of history was carried out jointly. He also stressed the need for the Kono Declaration to "remain intact"

Mr Hori argued that the military in North Korea was out of control and that this might also be the case in China.

Mr Masaharu Nakagawa emphasised the need to look at "historical facts". He stressed the importance of bringing China into the international community and for the political leaders in Beijing to exercise proper control of the military. He was concerned that the Chinese leadership was seeking to divert popular anger towards external threats. These concerns were subsequently echoed by Mr Hori.

1.2. Political situation in the EU

Mr Gollnisch gave his views on the situation in the EU. He recognised that these were considered to be minority opinions but argued that they might in the future come to be judged to be the views of the majority. He highlighted the "dogma" that the free circulation of goods would automatically bring prosperity. He stressed that it was impossible to compete with Chinese workers who accepted much lower wages and did not have the right to go on strike - this was a very "cynical capitalism" he believed. Open borders in Europe had also created a significant problem. He considered, too, that the EU was inclined to adopt too much legislation.

Mr Gollnisch also questioned how democratic the EU really was, noting that the proposed European constitution had been rejected in referenda in several countries in 2005 but had re-emerged in the form of the Lisbon Treaty. In conclusion, he confirmed his belief in a "European civilisation" in which the "equality and independence of nations" was respected.

Mr Vaughan argued that one of the greatest achievements of the EU was its contribution to establishing peace and stability, founded on the fundamental principles of human rights. Politicians were prepared to talk and listen to people. The euro-zone had an impact on every member state and all had been hit by the sovereign debt crisis and the lack of growth. It was essential to invest in jobs and growth and many problems could only be tackled at EU level with a focus on stimulating growth. He stressed too that the Community budget was only a very small percentage of the total GDP of member states. He noted that a start had been made with the European banking union which would lead to further common decision making. He underlined the importance of free movement of people, goods, services and capital and for this to be based on common rules.

Mr Hori expressed his deep interest in the possible referendum in the UK in 2017 and underlined his hope that Britain would stay in the EU as it was an important trade partner.

Mr Belder noted that his party was critical of the EU but played a constructive role. He considered the member states to be the core of European cooperation and the EU institutions to be the instruments. These institutions should serve the member states, he stressed, and not "the other way round". The current crisis had occurred, he believed, because some member states had not stuck to the rules and the EU should not use the crisis to extend its powers. He concluded by stating that he was not a euro-sceptic but that he wanted "rational cooperation".

-10/25- CR\930219EN.doc PE 503.485v01-00 Mr Sógor said that the EU was a "good project"; nevertheless it should be a source of inspiration, rather than a model for others. He commended the Nordic countries which were - he argued - superior in the fields of education, innovation and work ethics.

Mr Harbour was interested whether there might be lessons for the EU to be drawn from the economic policy of the Japanese government. It was important to invest political capital in working for future growth in the period beyond the financial crisis. It was essential to focus on making the Single Market Act work more effectively. Negotiating a successful FTA/EPA was fully in line with promoting growth in the EU and it was also important for Japan to secure more inward investment. He stressed the need to promote economic growth outside national borders and he rejected concepts of protectionism and "national champions".

13.30 2nd Working Session

2. Common concerns for Japan and the EU

2.1. Strengthening the EU-Japan comprehensive relationship

Mr Koichiro Gemba stressed that in his 16 months as Foreign Minister he had fully supported a "high level" FA/FTA. It was essential that the EU and Japan - which shared common values - cooperated to tackle the threats of terrorism and weapons of mass destruction. He warned that there was a risk of China seeking to change the current situation in Asia by force and this needed to be addressed by a peaceful response based on international law. He considered that the EU-Japan relationship was not living up to its full potential and he asked for the EU's cooperation in strengthening it.

Mr Masaharu Nakagawa noted that there were differences among the MEPs but that this was evidence of a mature democracy. Speaking as a former Minister of Education, he very much favoured cooperation in the field of science and technology. He outlined a number of areas of this cooperation, including work on super conductors and solar power, and pointed to four environmental projects with JST (SICP). He favoured people to people cooperation and the Erasmus Mundus programme and regretted that student exchanges between the EU and Japan had been limited to date.

Mr Peterle was very pleased that negotiations would soon start on the FA/FTA and he believed this to be a "turning point" in EU-Japan relations. He stressed that the partnership should be "strategic and comprehensive" and not "just another agreement". It was important to go beyond the FTA to achieve a real political agreement in which the EU and Japan joined together to tackle the threats of a world which "is not getting more peaceful". He highlighted cooperation in finding a cure for cancer, sustainable development and a strong accent on "the citizens". The EU was facing a crisis and needed the agreement with Japan even more than before.

Mr Harbour stated that cooperation between the EU and Japan in the field of science and technology was now fully underway, following the entry into force of the S&T Agreement on 29 March 2011. He stressed the need to maintain this momentum and highlighted the importance of ensuring adequate funding for research and development. Mr Harbour underlined, too, the need for there to be open access to public procurement and stressed that science and technology should not be compartmentalised but had to be a fundamental part of the framework of the FTA. Areas of cooperation included the health

-11/25- CR\930219EN.doc PE 503.485v01-00 sector, transport and energy (notably renewable energy). He also highlighted the benefits of a digital single market and an enabling legislative framework in the EU, with fair competition and "net neutrality".

Mr Hori noted that when he had been science minister he had visited CERN twice and that Japan was considering purchasing a linear accelerator. He stressed the need for a proper budget for "blue sky" research.

Mr Okuharu Yasuoka pointed to the high level of scientific knowledge in the EU and Japan. Turning to another issue, he recalled that the G8 at its 2005 Gleneagles summit had discussed the issue of contraband and product piracy and an agreement had subsequently been reached. He had been surprised and disappointed at the European Parliament's rejection of ACTA in July 2012. He stressed the need to protect Intellectual Property Rights (IPR) and for there to be a new international framework that was more advanced than TRIPS. He believed ACTA to be essential to prevent China spreading counterfeit products.

Mr Harbour stressed that ACTA had raised very important issues. There was a significant problem of counterfeiting but there had also been a feeling in the European Parliament that ACTA had been negotiated by officials and that parliamentarians had been excluded from the process. This sense of disconnection had led to the rejection of ACTA. He emphasised the need to an anti-counterfeiting agreement for physical products but recognised that achieving an agreement on the digital element was far more difficult.

Mr Gollnisch highlighted the strong and increasing interest in the EU in Japanese culture and noted that Japanese was the second of 27 foreign languages being taught at the University of Lyon. He thanked Mr Hori for his contribution during his time as Minister for Education. He asked, too, about the potential for geothermal energy in Japan.

Mr Gemba agreed that geothermal energy was a possible energy source for Japan and that it was important to develop the use of renewable energies in general. He too expressed his surprise that the European Parliament had rejected ACTA and asked for more clarification.

Mr Yasuoka added that ACTA appeared to provide sufficient safeguards for the privacy of the individual.

Mr Vaughan stressed that the European Parliament took copyright issues very seriously and would come back to the issue. He pointed to the internet campaigns against the agreement which had influenced many MEPs, as had the rise of the Pirate Party.

Mr van Baalen noted that there had been a generational element to the debate and the question had revolved around obligations and freedoms. He agreed that many MEPs had initially felt excluded from the negotiations and had reacted against the perceived secrecy.

Mr Vaughan underlined the need to widen people to people exchanges between the EU and Japan and the importance of the two sides cooperating in R&D in the field of climate change. He emphasised the importance of collaboration on the International Thermonuclear Experimental Reactor (ITER) and looked for Japan to continue to provide support as there was always a shortfall in funding. It was important to decouple ITER

-12/25- CR\930219EN.doc PE 503.485v01-00 from the STI budget as it used up the resources of other projects and member states were not willing to increase the budget for STI.

2.2. Economic, fiscal and financial issues

2.3. Security of energy supply

The two items were combined.

Mr Naokazu Takemoto outlined Japan's role in supporting the EU in the euro crisis through its contributions to the International Monetary Fund and its EFSF/EMS bond purchases. He stressed that it was ready to assist the EU in the future and that he had been impressed by the EU's management of the crisis. He underlined, too, the importance of the FTA/EPA in promoting economic growth. Mr Takemoto then outlined the "bold monetary policy" of the new government which was aimed at overcoming the problem of persistent deflation and securing economic growth. These emergency measures aimed to boost GDP by 2%. It was maintaining its G20 commitments of 2015 for primary deficit balance and 2020 as a target for primary surplus. This growth strategy was essential to promote competitiveness and to tackle the challenge of an ageing population.

Mr Okubo declared his support for "Abenomics" as the only suitable policy to tackle the current situation. Nevertheless, he pointed to risks such as the collapse of the Japanese Government Bond (JGB) market and the effects of 2% inflation on interest rates. He noted that Korean competitors were now suffering as a result of the devaluation of the yen and he stressed that there should be no currency war. This was a matter for the G20 to discuss at its meeting the following week.

Mr van Baalen stressed that the banking crisis was one of trust and morality. Banks had given loans and mortgages to people who could never repay them and there had been "total liberalisation". The member states had bailed out the banks, with very negative results for state finances. The euro was a political project in which Germany had agreed to give up the Deutschmark in return for being given the green light for reunification. France and Germany had not followed the rules and had broken the Stability Pact. The banking crisis had brought this all out into the open. Greece had made a mess of its finances and "had lied" to the EU. The euro was not in imminent danger but there were still big problems that had not yet been solved. It was still hard to get all parties to reform and much would be based on trust and a common culture of repayment. It was essential to deepen trade relations to create wealth but there was a "long way to go".

Mr Zasada noted that Poland was not in the euro. He was not sure what Greece could do, as it had a weak economy, much of which was based on tourism.

Mr Gollnisch argued that Greece would have been in a better position if it had retained the drachma, thereby enabling it to devalue its currency. Japan should not worry about the yen being weaker and Japanese citizens were owners of the country's deficit.

Mrs García-Hierro argued that the austerity measures being introduced in Europe were very unfair as they affected those who had not caused the crisis, particularly the young people. Governments had taken the easy route by making the citizens pay. She warned of an explosion in Spain as many people were suffering, although the situation would have

-13/25- CR\930219EN.doc PE 503.485v01-00 been worse if it had retained the peseta. She believed that a different policy should be adopted.

Mr Geier did not agree that the euro had been a political project and he argued that it was only a coincidence that the process had been launched around the time of German reunification. He argued that a common market meant common rules which logically demanded a common currency. Eurostat was aware that the figures being delivered by Greece were inaccurate - a situation compounded by the control of the Greek statistics body by the Ministry of Finance. Eurostat had complained about this situation to the Commission but the Council ultimately did nothing as there was no transparency.

Mrs Kawagushi noted that all nuclear power plants in Japan had ceased operation after the Fukushima disaster. As a result there had been a trade deficit, with a 50% increase in Japan's imports of oil and LNG in 2012. This had had a negative impact on Japan's competitiveness.

Mr Takemoto recalled his meetings some years ago with the Greek Prime Minister in which he had been told that Germany was benefitting from the opportunity to export to Greece with a euro that had been depreciated.

Mr Okubo considered that the consumption tax in Japan should be increased to 20% to cover the current deficit and the challenges of an ageing population.

Mrs Kawaguchi stressed that energy needed to be "eco-friendly" and she hoped that the supply of renewable energy would increase. Japan had had a policy of reducing its dependence on energy imports from the Middle East. It was essential to determine future energy policy and whether this involved a switch back to nuclear power or an increased use of coal and LNG, as well as shale gas from the USA. She noted that there were nine power companies in Japan which had a monopoly in their respective regions. Japan also had two separate electricity currents, depending on the region, which was not efficient.

Mrs Kawaguchi also pointed to the problems caused by declining birth-rates and an ageing population. Around 40% of the population would be over 65 by 2025. There was also a low fertility rate as young people had to concentrate on getting a job and therefore did not get married.

Mrs García-Hierro underlined the need to develop renewable energy and to intensify EU- Japan cooperation in the field of research and to promote nuclear safety and non- proliferation. She argued that nuclear power should be phased out at a global level in the long term and that renewable energy had to be developed further with fossil fuels also being phased out. She considered that the precautionary principle should apply and that the EU should be united in ensuring security of supply.

Mr Harbour did not agree that nuclear power should be phased out but also stressed the importance of collaboration in the field of research.

Mrs Kawaguchi argued for the development of smart grids and interconnectivity. She did not accept that nuclear power was inherently unsafe and stressed the importance of secure power supplies. She contended that Japan had learned from its past mistakes and pointed to the lessons learned from the EU and the establishment of the Nuclear Regulatory Agency in 2012.

-14/25- CR\930219EN.doc PE 503.485v01-00 Mr Kosaka argued for the development of solar energy and for Japan to use the same electricity cycle throughout the country. He noted that a debate was underway in Japan on whether there should be new nuclear plants. Development of geothermal energy caused a particular problem as the sources were mainly located in Japan's national parks.

Mr Haku noted that the promise by the former government to phase out nuclear plants by the 2030s no longer held.

2.4. Social issues

Mr Kósa pointed to the low birth rate in the EU (currently 1.4%) and the ageing population. He stressed that this was a global issue as currently 10% of the world's population was over 65 and this would increase to 21% by 2060. There was now an emphasis in the EU on "active ageing", for example by encouraging voluntary activities and new models of employment for older people and the disabled.

Mr Kósa also pointed to an unemployment level of 10% in the EU, which varied from 4% in Austria to 25% in Greece and Spain. 50% of young people in Greece were unemployed, compared to 10% in Austria. The EU had limited powers in social issues, he noted, but it faced a huge challenge.

Mr Belder highlighted the cost of education and the low birth rate.

Mrs Kawaguchi referred to Japan's "lost decades" of the last 20 years and the expansion of the gap between rich and poor. Generations of families were experiencing poverty and had been hit by the cost of education, with very high fees for good quality private schools and universities. The growth of poverty had led to need for a larger social security budget and the increase in the level of the consumption tax would not compensate for this increase.

Mr Kosaka referred to the UNICEF report in which Japan had the fourth worst level of child poverty in OECD countries. 1.57 million children needed financial support to go to public schools. It was important to ensure access to free education and financial support, he stressed.

Mr Kosa asked about accessibility issues for elderly people and those with disabilities, such as the visually impaired. Mr van Baalen asked if the Japanese government might provide more information on this issue.

Mrs García-Hierro stressed the importance of ensuring that women could follow a career, while also having a family. She asked how the Japanese government ensured that there was a proper balance between work and family life.

Mr Haku stressed that accessibility for the elderly and those with disabilities had improved, however problems remained - particularly in rural areas. He agreed that it was important to strike the correct balance between work and family life and this had been a key objective of the previous government.

-15/25- CR\930219EN.doc PE 503.485v01-00 Mr Koshimizu underlined the need for reliable day care centres for elderly people. He also welcomed any steps towards encouraging fathers to take leave to look after their children.

Mr Hori - noting that he was probably the oldest person in the room - also commended the benefits of active ageing. Returning to a previous item, he underlined the importance of restarting the nuclear power plants as soon as this could be done safely.

He then thanked Mr van Baalen for chairing the second half of the meeting and expressed his satisfaction at an intense and wide-ranging exchange of views across a spectrum of very important topics.

Mr van Baalen expressed his satisfaction at the meeting and thanked Mr Hori for the excellent organisation of the event. He looked forward to hosting a lunch that evening.

17.30 Press slot at the hotel for Chair

M van Baalen was interviewed by the Japanese NTV television channel.

He made the following points during the interview:

 the FTA was "good for Japan and good for the EU", although there was a need to reach a compromise in such areas as cars, agriculture and NTBs - the two sides "needed to be honest with each other";

 agreement on the FTA could be reached within two years - "it can take a long time to agree or a short time to agree" - it was important that negotiators be appointed as soon as possible;

 China needed to respect international law and - if it felt it had a case over the Senkaku/Diaoyu Islands - should take it to the ICJ and not threaten force - in Mr van Baalen's personal view Japan had the stronger claim to the islands;

 Beijing should not threaten the use of coercion against Taiwan and needed to play a positive role regarding North Korea;

 the EU, USA and Japan needed to work closely together and ensure respect for international law;

 both sides agreed on the need to take bold steps to tackle the current economic recession but he warned that national debts were unsustainable and that growth could not only be financed by credit;

 it was important that Japan did not seek to revise the Kono Declaration on the issue of "comfort women".

Thursday 14 February 2013

Visit to the Miyagi Prefecture

-16/25- CR\930219EN.doc PE 503.485v01-00 The delegation travelled to the Miyagi Prefecture which had experienced the worst of the effects of the tsunami in March 2011.

The delegation travelled by high speed train to Sendai. On arrival they were briefed by local MPs who gave their personal experiences of the disaster and the losses of friends and relations. There was no evidence of the tsunami in central Sendai, which had not been hit; however the affects of the disaster became clear when the delegation subsequently travelled along a highway which had acted as a breakwater during the floods. On the coastal side of the highway there was evidence of devastation, whereas the landward side had been protected.

MEPs were informed that in many areas it was still not possible to grow rice as the salt from the seawater in the fields still needed to be removed. Many ruined houses had not yet been demolished as the owners' permission was required. The debris from the disaster had been gathered together in piles and waste was being burned in an incinerator.

Following lunch the delegation visited Onagawa, a fishing village which had been particularly affected, with 835 people losing their lives out of a population of around 8,000. The officials in the town hall had escaped to the roof of the building where they had been isolated for three days without any mobile telephone coverage. The members visited the hospital, which had been less affected as it was on high ground, and they laid a wreath in honour of those who had lost their lives.

Around 70% of the buildings in Onagawa had been washed away and the delegation visited the temporary housing that was being used. They were informed that the rebuilding process would take around eight years in total and construction would be on higher ground. So far 90% of the population had agreed to the work taking place. Fishing was the most important industry of the town and the fishing community was unhappy with proposals for a seawall as it could impact on catches.

44,000 tonnes of debris had been collected and it would take 115 years for Onagawa to dispose of this debris if it did not have outside assistance. However this external help ought to result in all the debris being removed by 2014.

The delegation visited the temporary town hall for a briefing on the reconstruction plan with Mr Masato Higashino, the deputy mayor.

In the meeting the delegation underlined how impressed they were by the resilience of the local population who had "taken the future in their own hands". They wished Mr Higashino and his colleagues every success in "making their town beautiful again".

Mr Higashino expressed his gratitude for all the support that the EU had provided. He noted that the tsunami had affected Onagawa more than any other town and that a disaster of that magnitude "strikes every thousand years". EU Fisheries Commissioner Damanaki had come to the town in July 2012 during a visit to Japan to strengthen cooperation on fisheries and maritime protection.

In response to questions from members, Mr Higashino noted that speakers had been installed in homes to alert people about any impending disaster but that electrical failure had resulted in the message not getting through. Onagawa did not have the resources to fund the reconstruction process and this was being financed by the national government.

-17/25- CR\930219EN.doc PE 503.485v01-00 Many of the fishermen were now working outside the town or in temporary fish processing facilities. Catches of fish currently stood at 60% of pre-tsunami levels and the Deputy Mayor hoped that this would rise to 90% by 2014. He anticipated that it would take up to five years to make a full recovery.

Following this visit the delegation returned to Sendai where they attended a dinner hosted by Mr Hori.

Friday 15 February 2013

09.00 Meeting with Mr Masahiro Wakoh, Vice Governor of Miyagi Prefecture

Mr Wakoh thanked the EU for its support during the Great East Earthquake. He outlined efforts to rebuild agriculture and the fishing industry following the disaster. The effects of the disaster in the Miyagi Prefecture had been compounded by the departure of many people from the region. A campaign was underway to attract tourism from Europe and other parts of the world. There were also efforts to bring in industry and significant progress had been achieved in January 2012 when Toyota had established a factory in the Prefecture. Mr Wakoh was keen for the delegation to publicise the recovery made by the Miyagi Prefecture.

The Vice Governor noted that Japan had experienced many earthquakes and was accustomed to rebuilding after disasters. He stressed the importance of effective cooperation between the national and municipal governments in the reconstruction process. Much attention was currently being paid to future disaster mitigation strategies, including assistance to disabled and elderly people who were particularly vulnerable.

The EP delegation stressed how impressed they were by the reconstruction effort and recalled that they had visited Japan in 2011 only two months after the tsunami. They also referred to the exhibition in the European Parliament on the first anniversary of the disaster.

Mr Wakoh commended the EU for the emphasis that they had put on renewable energy and stressed that there was untapped potential for this to be developed in the Miyagi Prefecture, particularly in the case of wind power. The areas in which solar energy could be developed were mainly covered by farmland and the regulations regarding development were very strict, although he anticipated that this would change as the central government had recognised the need to develop renewable energy. He welcomed proposals for European companies to invest in the development of renewable energy in the region.

The Vice Governor noted that radiation levels in the Miyagi Prefecture were well within acceptable limits, even in the southern parts near the Fukushima region. All necessary precautions had been taken, including removing the soil in the areas worst affected. All food products were inspected before they were sold.

There was also discussion of an earlier episode of links between Europe and Japan - the diplomatic mission led by the Japanese noble, Hasekura Tsunenaga, to Spanish America and Europe from 1613 to 1620.

-18/25- CR\930219EN.doc PE 503.485v01-00 10.15 Briefing at Sendai Airport by the President of the Airport, Mr Katsuhito Ito

Mr Ito informed the delegation that Sendai Airport had previously been a military airbase. It had begun to service commercial flights in 1970 and there were now 80 daily flights with 2.8 million using the airport every year. This made it the tenth largest airport in Japan in terms of passenger numbers and the hub airport of the Tohuku region. The runway was at sea level and situated 1.7 kilometres from the coast.

Mr Ito gave a graphic description of the experience of those at the airport's experiences during the tsunami, which had struck the airport around 90 minutes after the first earthquake, sending a tidal wave that went around five kilometres inland. Most people were able to move to the third floor of the terminal building and 1,700 were eventually evacuated. Many of those who did not succeed in reaching the building perished. 2,000 parked cars were washed away. The fuel containers did not explode so there was very little secondary damage.

Airport officials had not been trained to respond to tsunamis and were forced to rely on their fire drill training. Little food was available, except what was on sale in the airport. The rescue operation was hampered by the lack of mobile telephone contact and those at the airport could not follow the news on the television. On the fourth day those who were able to do so left by walking along the runway. The terminal was built to be earthquake proof and no windows had broken.

There was an objective of restarting domestic flights within six months: in fact they started again on 25 July 2011 and the airport was fully operational on 25 September 2011. Officials were continuing to measure radiation but readings showed levels at Sendai to be lower than at Narita or Haneda airports.

The visit to the airport was followed by lunch hosted by the Diet and the delegation then returned to Tokyo by train for onward travel to Europe.

-19/25- CR\930219EN.doc PE 503.485v01-00 EUROPEAN PARLIAMENT 2009 - 2014

Delegation for relations with Japan

34th EU/Japan IPM 11-15 February 2013 Tokyo & Miyagi prefecture

List of participants

Members (13)

Committee on Foreign Affairs Mr Hans VAN BAALEN, Chairman ALDE Subcommittee on Security and Defence Netherlands Delegation for relations with the United States Delegation for relations with the Afghanistan EPP Committee on Transport and Tourism Mr Artur ZASADA, 2nd Vice-Chair Poland EPP Committee on Employment and Social Affairs Mr Adám KÓSA (full member) Hungary Committee on Civil Liberties, Justice and Home Affairs EPP Mr Csaba SÓGOR (substitute Delegation for relations with the countries of Romania member) Southeast Asia and the Association of Southeast Asian Nations (ASEAN) S&D Ms Dolores GARCÍA-HIERRO Committee on Fisheries Spain CARABALLO (full member) S&D Committee on Budgets Mr Jens GEIER (full member) Germany Committee on Budgetary Control

S&D Committee on Budgets Ms Zuzana BRZOBOHATÁ Czech Committee on Budgetary Control (substitute member) Republic Committee on Budgets S&D Mr Derek VAUGHAN (substitute Delegation to the ACP-EU Joint Parliamentary UK member) Assembly

ECR Mr Mirosław PIOTROWSKI (full Committee on Foreign Affairs Poland member)

-20/25- CR\930219EN.doc PE 503.485v01-00 ECR Chairman, Committee on the Internal Market Mr Malcolm HARBOUR CBE UK and Consumer Protection (substitute member) Delegation for relations with Israel EFD Committee on Foreign Affairs Mr Bastiaan BELDER (full Netherlands Delegation to the Parliamentary Assembly of the member) Union for the Mediterranean NI Mr Bruno GOLLNISCH (full Committee on Transport and Tourism France member)

Committee on Foreign Affairs, Rapporteur on EPP the Framework Partnership and Cooperation Mr Alojz PETERLE Slovenia Agreement with Japan

Secretariat of the EP Delegation (3)

Mr Jonas Condomines Béraud Head of Unit Mr Tim Boden Administrator Ms Kathleen Huygen Assistant

Political group advisors (4)

Ms Anne Vahl EPP Mr Philip Drauz ALDE Ms Sheena Gooroochurn ECR Mr Walter van Luik EFD

Interpreters (3)

Ms Isabel Payno Jiménez-Ugarte (ES) Mr Diego Garzon Nunez (ES) Ms Cynthia Cave (sign language interpreter)

______EPP Group of the European People's Party (Christian Democrats) S&D Group of the Progressive Alliance of Socialists & Democrats in the European Parliament ALDE Alliance of Liberals and Democrats for Europe ECR European Conservatives and Reformists group EFD Europe of Freedom and Democracy Group in the European Parliament NI Non-attached Members

-21/25- CR\930219EN.doc PE 503.485v01-00 EUROPEAN PARLIAMENT 2009 - 2014

Delegation for relations with Japan

34th EU/JAPAN Interparliamentary Meeting

TOKYO & MIYAGI 11-15 February 2013

FINAL PROGRAMME

Sunday 10 February 2013

17.30 Preparatory meeting with EU delegation (secretariat only)

Monday 11 February 2013

Final preparations (completion of chair notes, liaison with hotel, EU Delegation, Japanese Parliament)

Individual arrivals of Members and staff

Accommodation: Palace Hotel Tokyo 1-1-1 Marunouchi, Chiyoda-ku Tokyo 100-0005 +81-3-3211-5211

16.15 Preparatory meeting with EU Delegation staff (secretariat only)

17.00 Delegation meets in hotel lobby

17.10 Departure from the hotel for EU Delegation by a chartered bus

17.30 Briefing with Ambassador Schweisgut at the EU Delegation (offices)

-22/25- CR\930219EN.doc PE 503.485v01-00 18.30 Reception with buffet hosted by Ambassador Schweisgut at the EU Delegation (Reception Room)

20.30 Departure from EU Delegation for the hotel

Tuesday 12 February 2013

08.30 Preparatory meeting with Diet secretariat at hotel (secretariat only)

09.30 Meet in hotel lobby

09.40 Departure from the hotel

10.00 – 10.45 Courtesy call on MP Bunmei Ibuki, Speaker of the House of Representatives Venue: Speaker's Office in the House of Representatives

Followed by a visit to the plenary chamber

11.00 - 11.30 Courtesy call on MP Kenji Hirata, President of the House of Councillors Venue: President's Office in the House of Councillors

12.00 - 13.30 Lunch hosted by MP Shunichi Suzuki, Parliamentary Senior Vice Minister for Foreign Affairs (MEPs only) Venue: Room of Hikari, Akasaka Excel Tokyu (13F)

15.30 Preparatory meeting between Chairs and Vice Chairs of the EP and Diet delegations Venue: Office of Chair of the HoR Constitution Committee, Daiichi Giin Kaikan

16.00 Visit to a budget committee meeting at the House of Representatives

16.30 Meeting with Minister for Health, Labour and Welfare, Mr Norihisa Tamura Venue: Room for Standing Committee Chairmen, Main Building, House of Representatives

16.45 Depart from the Diet for the hotel

17.40 Depart from the hotel for Speaker's Residence

18.00 Reception with buffet hosted by House of Representatives Speaker and House of Councillors President Venue: Speaker's Official Residence

-23/25- CR\930219EN.doc PE 503.485v01-00 Wednesday 13 February 2013

08.30 Meet in the hotel lobby

08.40 Departure from the hotel

09.00 1st Working Session Venue: International Conference Room, Shugiin Daiichi Giin Kaikan

11.45 Reception with buffet hosted by Chair of the Japanese Diet delegation Venue: Tachibana Room, Palace Hotel (2F)

13.30 2nd Working Session Venue: International Conference Room, Shugiin Daiichi Giin Kaikan

17.30 Press slot at the hotel for Chair

18.00 Dinner hosted by Chair of the EP delegation for relations with Japan Venue: Hagi Room, Palace Hotel (2F)

Thursday 14 February 2013

08.30 Meet in hotel lobby

08.40 Departure from the hotel

09.24 Departure from Tokyo Station (by shinkansen train)

11.17 Arrival at Sendai Station

12.30 Lunch hosted by the Diet delegation Venue: Hotel Taikanso, Matsushima

15.00 Visit to Onagawa Town (tsunami affected region), including a visit to the temporary town hall for a briefing on the reconstruction plan, meeting with Mr Masato Higashino, deputy mayor

17.50 Arrival at the hotel

18.30 Dinner hosted by Chair of the Diet delegation Venue: Westin Hotel Sendai

Overnight stay in Sendai city (Miyagi prefecture)

Westin Hotel Sendai Ichibancho Aoba Ward Sendai, Miyagi Prefecture 980-0811 - +81 22-722-1234

-24/25- CR\930219EN.doc PE 503.485v01-00 Friday 15 February 2013

08.30 Departure from the hotel

09.00 Courtesy call on Mr Masahiro Wakoh, Vice Governor of Miyagi Prefecture (Govenor will not be in Miyagi on the day)

10.15 Visit to Sendai Airport

Briefing by President of the Airport Mr Katsuhito Ito (former vice- governor of the prefecture) on the disaster situation and management measures after the Great East Japan earthquake.

12.30 Lunch hosted by Chair of the Diet delegation Venue: Former Date's Residence Shoukeikaku

14.46 Departure from Sendai Station for Tokyo Station (by shinkansen)

16.56 Arrival at Tokyo Station and transfer to the Palace Hotel by chartered bus

Evening Secretariat: preparation of feedback note, settlement of expenses, money exchange, administrative work

Saturday 16 February 2013 onwards

Return of Members/staff to Europe

-25/25- CR\930219EN.doc PE 503.485v01-00