REPORT of the 34Th EU/JAPAN Interparliamentary Meeting Tokyo

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REPORT of the 34Th EU/JAPAN Interparliamentary Meeting Tokyo 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.
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