EUROPEAN PARLIAMENT 2009 - 2014

Delegation for relations with

32nd EU-Japan Interparliamentary Meeting

Tokyo, 18 - 20 May 2011

REPORT

The European Parliament’s Delegation visited Japan () from 18 to 20 May 2011 in the framework of the 32nd EU - Japan Interparliamentary Meeting. Nine Members participated: Chair Hans van Baalen (ALDE, NL), first Vice-Chair Sandra Kalniete (EPP, LV), second Vice-Chair Zasada (EPP, PL), Ioan Paşcu (S&D, RO), Csaba Sógor (EPP, RO), Ramona Mănescu (ALDE, RO), Frieda Brepoels (Greens/EFA, BE), Malcolm Harbour (UK, ECR), Bruno Gollnisch (FR, NI).

The visit achieved its goal which was the strengthening of Interparliamentary relations. The 32nd Interparliamentary meeting was held on 19 and 20 May and the Japanese Delegation was led by Mr. Hatoyama, President of the Friendship Group with the EU and former Prime Minister of Japan. The fact that the visit took place at the date initially scheduled was much appreciated by the Japanese counterparts and it emphasized the solidarity the EU showed from the date of the earthquake and tsunami on 11 March 2011, onwards.

On the evening of 17 May 2011, Ms Brepoels MEP had a meeting on human rights with representatives of various civil society organisations. She had an intensive exchange of views with members of Amnesty International, Human Rights Now and the Center for Prisoners' Rights Japan. A wide range of issues were discussed: death penalty, refugees statute, prisoners' rights, judicial reform in Japan, the National Human Rights Institution etc. The civil society representatives briefed Ms Brepoels on current issues and asked for the support of the European Parliament on a number of points. They noted that no essential developments were done regarding the issue of the death penalty in Japan; there is low recognition rate and difficulty to be recognised as a refugee, lack of legal status and financial difficulties for asylum seekers. They expressed their worries that the new National Human Rights Institution, created at the United Nations' request, will not be an independent body if it is affiliated under the Ministry of Justice. Ms Brepoels promised that she would bring their message back to Brussels and she would discuss the issues mentioned above at the meetings with the Japanese authorities in the forthcoming days.

CR\872716EN.doc 1 PE465.370v01-00 Wednesday 18 May 2011

Briefing by the EU Delegation to Tokyo, led by Ambassador Schweisgut

The MEPs were briefed by the EU Delegation to Tokyo on the latest developments in Japan's political and economic scene. The emphasis was put on the Japanese change of attitude after the earthquake and tsunami which hit Japan in March 2011

Since 11 March the tensions that were previously evident in domestic politics have for the most part subsided in the interests of national unity. There have been a few eruptions from both the main LDP opposition and from within the DPJ, mostly aimed at Prime Minister Kan, but on the whole the Kan administration is no longer hamstrung by intraparty strife. The latest opinion polls show the approval rating of the Kan administration at the 30% mark, up from a pre-crisis 20%. That said, the PM is on record as saying he would not quit even if his approval rating dropped to 1%.

Before the disaster on 11 March, Japan’s economy was emerging from a brief deceleration phase and was seen to be returning to moderate growth with anticipated support of robust external demand in 2011. Despite the scale of the disaster, the impact on the 2011 GDP is expected to be relatively limited, (average growth estimates revised down to 0.4% from 1.6%). Domestic demand is set to be boosted by reconstruction efforts from the second half of the year. The Cabinet Office estimated that reconstruction costs could reach ¥25 trillion (€210 billion approx.) or 5% of GDP. Supplementary budgets in Financial Year 2011 are predicted to total ¥10 trillion (€84 billion approx) or 2% of GDP. The first supplementary budget of ¥4 trillion (€34 billion approx) passed in early May and was financed by discretionary spending cuts and drawings from the public pension reserves. It is widely perceived that it will be the second and possibly third supplementary budgets that will pose the greatest fiscal challenge for the government.

At the regional level, the June deadline on the decision about entering preliminary TPP trade talks is likely to be postponed due to preparations being disrupted by the disaster.

At the multilateral level, one consequence of the nuclear crisis is the emphasis put by Japan on nuclear safety. Prime Minister Kan is keen to have nuclear safety issues as a theme at the next G8 Summit.

On the issue of a future EU - Japan Free trade Agreement, Mr Schweisgut said that the EU is expected to propose to Japan at the EU - Japan Summit in Brussels on May 28th that the two sides hold preparatory talks, known as a "scoping exercise," with the aim of narrowing down issues and problems to be discussed during the full-scale negotiations. The scoping exercise is the best sign that the EU can give because it means that it is an important matter on its agenda. He was sure that the two main topics on the Summit's agenda would be the FTA/EPA and food safety.

Answering MEPs' questions on agriculture, Mr Schweisgut noted that Japanese agriculture, since 90% of the fishery sector was destroyed, needed to be rebuilt and only after can it be subjected to regularisation.

CR\872716EN.doc 2 PE465.370v01-00 Meeting with Mr Takashi Shinohara, Senior Vice-Minister at the Ministry of Agriculture, Forestry and Fisheries

The estimated damage of the earthquake, tsunami and Fukushima nuclear power station disaster is estimated at ¥ 1.49 trillion on the agriculture, forestry and fisheries sectors. Around 24 000 ha of land were damaged by tsunami in the area affected. The EP Delegation raised topics such as the compatibility between a future FTA and Japanese agriculture, consumer's concerns on food safety, the situation of rice farmers and the mutual confidence needed to be built on both sides.

Minister Shinohara inquired on the CAP's within the EU and the EU legislative system in general. He noticed that in October 2010, a special body was created within the Japanese Cabinet to seek compatibility between FTA's and agriculture reform. Due to the earthquake, its activity is on hold for the time being. The Vice-Minister urged the EU to withdraw its restrictions on Japanese exports, thus supporting Japan to rebuild a productive agriculture sector post-disaster.

Courtesy call on H.E. Mr Takahiro Yokomichi, Speaker of the House of Representatives

Mr Yokomichi noted the importance of the long lasting EU - Japan relations which exist since 1979. He expressed his gratitude for the EU's support post earthquake and emphasized the effort of the Japanese people to maintain the situation under control. He considers that the launching of negotiations in view of an EU - Japan FTA would enhance cooperation and would create a win-win relation.

The EP Delegation highlighted the solidarity of the EU with Japan and its respect for the way in which the people of Japan reacted to the crisis. This unfortunate situation could create the base of a better communication between the two sides, to jointly work on a common approach regarding such issues as nuclear and food safety.

Courtesy call on H.E. Mr Takeo Nishioka, President of the House of Councillors

A wide range of issues were discussed during the meeting: post disaster assistance, the EU - Japan FTA, Japan's foreign policy in conflict areas such as Afghanistan, Pakistan, Iraq. Energy policy, the death penalty, relations of Japan with China and Russia.

Mr Nishioka pointed to the support offered by Japan to the Afghan process of reconstruction. He agreed that the EU - Japan cooperation in this area should be improved. The instability in Afghanistan and Pakistan have a direct impact on Europe and Japan, therefore both Japan and the EU have a strategic interest in the region. Regarding the death penalty, he informed the delegation that a consensus to abolish the death penalty had not been reached yet. Speaking about relations with China and Russia, he stressed that the situation is sensitive, but they are interested in having a good relation with both countries and they are working towards this.

CR\872716EN.doc 3 PE465.370v01-00 Meeting with Mr Banri Kaieda, Minister of Economy, Trade and Industry

The main topic of interest was the EU - Japan Free Trade Agreement. Minister Kaieda explains that the FTA is vital for both Japanese and European economies. Japan is ready to tackle the non tariffs barriers after the launching of negotiations. The EP Delegation said that preparatory talks should be held before the starting of negotiations. On the basis of a successful scooping, the EU can decide to start the negotiations or not. Both sides agreed that a deep and comprehensive FTA/EPA is needed and it has to address all issues of shared interest such as tariffs, non-tariff barriers, public procurement, agriculture including food safety etc and that this exercise has to be based on a reciprocal trust.

Thursday 19 May 2011

Meeting with Mr Yoshinori Suematsu, Senior Cabinet Vice Minister

The discussion was focused on Japanese political life post disaster, the FTA, the nuclear crisis, its impact on nuclear energy, the issue of food safety. The EP Delegation noted that the Europeans were very much moved by the response of the Japanese people, and government, to the disaster and ensuing accident at the Fukushima nuclear power plant. The Delegation mentioned that they also understand that the point of interest of the Japanese side is a FTA/EPA and they are ready to support it as long as preparatory talks are held prior the negotiation process to be launched. Both sides agreed that a common approach is needed in order to promote the highest levels of nuclear safety around the world, in particular through the International Atomic Energy Agency. Information on safety measures has to be exchanged and further developed and that further cooperation on strengthening international nuclear safety standards is needed. The recovery and reconstruction process was another issue discussed by Mr Suematsu and the EP Delegation. The Minister briefed the MEPs on the measures taken by the Government in this sense.

Meeting with representatives of the European Business Council

The EBC was represented by Ms Alison Murray, Executive Director, Michel Theoval, Senior Vice-Chairman and Mr Duco Delgorge, Vice-Chairman.

The main topic of discussion was the EU - Japan FTA. The EBC representatives asked for the EP's support in this matter. They pointed out that progress could only be secured through intense negotiations based on binding commitments on both sides; therefore they expressed their reticence regarding a possible "scoping exercise". They consider that a further delay on the EU's commitment to open the negotiations risks being interpreted by the Japanese side as a lack of commitment to the relation as a whole. The opinion of the EBC was that the 2011 EU - Japan Summit represents the best opportunity the EU may ever have to boost mutual trade and investment with Japan.

The EP Delegation insisted that the EU can not engage in this process before having guarantees that Japan is serious about tackling non tariffs barriers and dealing with the public procurement issue. They also admitted that the strong opposition on the matter by the EU has softened since the March 11 earthquake and tsunami.

CR\872716EN.doc 4 PE465.370v01-00 1st Working session of the 32nd EU - Japan Interparliamentary Meeting

The discussions were led by the two Chairs, Mr van Baalen, Chair of the EP Delegation, and Mr Hatoyama, Chair of the Japanese Delegation.

Mr Hatoyama pointed out in his introductory remarks that he was very grateful that the visit could take place as initially planned and he thanked the European Delegation for the EU's solidarity at this difficult time. He apologized in the name of Japan for the Fukushima incident and its aftermath. He emphasized the main topic of interest, a future EU - Japan FTA/EPA. As this issue is on the common agenda, both delegations should look into this precise theme in more depth in order to provide the necessary political impetus and accelerate the start of formal negotiations.

Current situation in Japan, countermeasures against and forward-looking agenda on the Great East Japan Earthquake.

Mr , Special Advisor to the Prime Minister, briefed the MEPs on the situation at the Fukushima Dai-ichi Nuclear Power Plant. He detailed the whole process put in place by TEPCO - and he outlined the Roadmap towards Restoration from the Accident at Fukushima Daiichi Nuclear Power Station. The targets of the Roadmap have the Government's support and he confirmed the safety of the plan; they will conduct monitoring; continue international cooperation; and continue the investigation and verification of the accident. Government's support is expected in actions such as cooling the reactors, cooling the spent fuel pools, containment, storage, treatment and reuse of water contaminated by radioactive materials, prevention of the spread of contamination of subsurface water, mitigation of radioactive materials in the atmosphere and soil. He outlined the measures against aftershocks, and measures put in place to ensure the safety of the working environment, improve living conditions and health management.

Mr Koichiro Ichimura, Acting Chief, local Disaster Response Headquarters, presented the economic impact of the "Great East Japan" earthquake and the current status of recovery. He talked about the effects on the infrastructure, on specific industries such as steel, petrochemical, auto and electronics.

The macroeconomic impact can be summarised as follows: ' growth will be positive after the Great earthquake. He estimated damage to stock due to the disaster to be about 1% of national stock. According to private sector forecasts, Japan's economy will grow in Q3 and Q4 2011 after slowing down in the Q1 and Q2. The degree of the slowdown is expected to be much less than after the "Lehman Shock" which hit the financial sector.

An exchange of views between the members of the two delegations followed. The MEPs raised issues such as the social dimension of the disaster, IAEA involvement in the issue, the safety of the other Japanese nuclear power plants, measures taken in case of a second big earthquake.

CR\872716EN.doc 5 PE465.370v01-00 Friday 20 May 2011

2nd Working Session of the 32nd EU - Japan Interparliamentary Meeting

The three themes discussed were the political situation of Japan and the EU; Economic cooperation between Japan and the EU (emphasis on the EPA); Energy Policy and Climate Change, Science Co-operation Agreement and Scientific & Technological Collaboration.

In his introductory remarks, Mr van Baalen said that the EU was very much moved by the response of the Japanese people and the government, to both the disaster and the ensuing accident at the Fukushima nuclear power plant. He considers that maybe Fukushima could be a "wake-up call" for both the European and the Japanese sides to see the importance of cooperation. It is also an opportunity to learn a lot about safety. He also emphasized that the key words of today's EU - Japan relations is "reciprocal trust".

Political situation of Japan and the EU

The two delegations discussed the big impact the earthquake had on Japan and ways to overcome the immense loss. The Japanese side was very interested in learning from European experience. The MEPs briefed their counterparts on the changes the Europe suffered from the 2nd World War onwards in terms of politics, economics, security and European integration. The Japanese colleagues agreed that there are measures to be taken such as the improvement of the parliamentary system, the constitution could be amended and the participation and role of women in politics increased. It was emphasized that a big part of Europe did not have knowledge about Japan history and culture and vice-versa. A better reciprocal acknowledge would deepen the collaboration and friendship between the two nations.

Economic cooperation between Japan and EU (EPA)

The discussion focussed on the EU - Japan FTA/EPA. As in the previous meeting, the European Delegation expressed its commitment to the process. They agreed that the process had to be speeded up, because there is a need of economic cooperation in the aspect of rebuilding Japan after the earthquake, and Europe after the financial crisis. The FTA has considerable potential and will be beneficial for the economies of both parties. At a time when both economies are recovering from recession, new jobs have to be created and financial growth stimulated. It was underlined that in order to achieve the FTA, efforts to meet each others interests have to be done and both sides must be willing to compromise for the benefit of the future. The MEPs encouraged their Japanese colleagues to be ambitious and press ahead with fundamental domestic reforms in order to strengthen Japan’s competitiveness and to be ready to open the country for free trade. They emphasized that in a resolution passed in plenary session on 11 May, the European Parliament supported the opening of negotiations on a free- trade agreement between the EU and Japan, but beforehand expects much more progress from Japan on the removal of non-tariff barriers. MEP's called for a safeguard clause to be included in any future agreement, especially in sensitive sectors such as the automotive, electronics, aviation and machinery industries.

CR\872716EN.doc 6 PE465.370v01-00 Energy policy and Climate change (including Science Co-operation Agreement and Scientific & Technological Collaboration)

The European Parliament delegation briefed the Diet Members on European energy policy. They explained that the European Council adopted in 2007 ambitious energy and climate change objectives for 2020 – to reduce greenhouse gas emissions by 20%, rising to 30% if the conditions are right, to increase the share of renewable energy to 20% and to make a 20% improvement in energy efficiency. The European Parliament has continuously supported these goals. The European Council has also given a long term commitment to the decarbonisation path with a target for the EU and other industrialised countries of 80 to 95% cuts in emissions by 2050. One of the latest European achievements is that the Lisbon Treaty established an EU competence on energy. Under the terms of the Lisbon Treaty, the basic control of national energy policy is partly being transferred from Member States to the EU. The Treaty allows the EU to direct the objectives for energy policy. The new EU energy policy focuses on five priorities: achieving an energy efficient Europe; building a truly pan-European integrated energy market; empowering consumers and achieving the highest level of safety and security; extending Europe's leadership in energy technology and innovation; strengthening the external dimension of the EU energy market.

The energy policy impact on climate change was also discussed. Both sides agreed that after the Fukushima nuclear incident, an increased attention should be dedicated to renewables and energy efficiency. The EU considers that the economies could get a boost from investments in green industries. As an example, it was estimated that 1, 5 million additional jobs would be created by green industry by 2020.

Despite the fact that nuclear energy increasingly has been described as an important bridge to a low-carbon future, after Fukushima, that is no longer feasible. The accident at Fukushima, therefore, is quite likely to worsen climate change by leading nations to rely more heavily on fossil fuels at a time when the opposite should be done. An increase of climate change measures are requested in this context. The Japanese delegation made it clear that they would do their utmost for Japan to keep its commitment to lower greenhouse gas emissions by 25 percent by 2020 from the 1990 level, commitment set in September 2009 by then Prime Minister . It was agreed that the EU and Japan would work together in the field of climate change, promoting the development of low-carbon global economies that are safe and sustainable.

The bilateral Science and Technology (S&T) Cooperation Agreement entered into force on 29 March 2011. The EU delegation emphasized that the cooperation between the European Union and Japan under the new agreement will benefit both sides. They will not only have joint projects, but due to the agreement, they will be able to jointly exploit these projects. Both parties agreed that the agreement creates a very favorable framework for further cooperation in the area and the two sides will continue to promote joint studies and initiate new projects.

In the conclusions of the meeting, both Chairs Mr van Baalen and Mr. Hatoyama, highlighted that the meeting was very successful and productive. The very intense exchanges of views made the time of the meeting look to be too short for the wide-

CR\872716EN.doc 7 PE465.370v01-00 range of issues on the agenda. Mr Hatoyama agreed that Japan needs to do some important political and economic changes, the country needs to open more in order to face the global challenges. He repeated that the key word of the EU - Japan relation is "trust" and the Japanese side would do its best to create it. He militated for a very short period of time of pre-negotiations in view of a FTA, enhanced cooperation on energy efficiency and climate change.

Mr Van Baalen reiterated his belief that only the reciprocal trust could be a solid base for EU - Japan relations. The EU is prepared to show its commitment to a FTA. Progress is needed on a number of issues such as non tariff barriers and restrictions on public procurements, but the EU is ready to send a positive message that it has faith in the Japanese side as an economic partner. EU - Japan cooperation needs to be extended in other fields such as energy, climate change, science and technology. He believes that despite the current difficulties, Japan will overcome the challenges and emerge even stronger than before. The EU and Japan have to continue close dialogue and seek possibilities for collaboration during the recovery and reconstruction phase.

The 33rd EU - Japan Meeting will take place in 2012 in Brussels.

CR\872716EN.doc 8 PE465.370v01-00 EUROPEAN PARLIAMENT 2009 - 2014

DELEGATION FOR RELATIONS WITH JAPAN

32nd EU/JAPAN INTERPARLIAMENTARY MEETING

18 - 20 May 2011 Tokyo

List of Participants

Mr Hans VAN BAALEN, Chair ALDE Netherlands Ms Sandra KALNIETE, Vice-chair EPP Latvia Mr Artur ZASADA, Vice-chair EPP Poland Mr Csaba SÓGOR EPP Romania Ms Ramona Nicole MĂNESCU ALDE Romania Mr Ioan Mircea PAŞCU S&D Romania Ms Frieda BREPOELS Greens/EFA Belgium Mr Malcolm HARBOUR ECR United Kingdom Mr Bruno GOLLNISCH NI France

Secretariat of the EP Delegation

Ms Alida Staicu Administrator Ms Kathleen Huygen Assistant

Political Group Advisors

Mr Conan D'Arcy ALDE Ms Sheena Gooroochurn ECR

CR\872716EN.doc 9 PE465.370v01-00 EUROPEAN PARLIAMENT 2009 - 2014

Delegation for relations with Japan

32nd EU/JAPAN Interparliamentary Meeting TOKYO 18 - 20 May 2011

FINAL PROGRAMME

Accommodation:

IMPERIAL HOTEL TOKYO 1-1, Uchisaiwai-cho 1-chome, Chiyoda-ku, Tokyo 100-8558 TEL: +81-3-3504-1111 FAX: +81-3-3581-9146

Tuesday 17 May 2011

Individual arrivals of Members and staff at Narita

08.55 Arrival Mr Van Baalen on flight KL861 from Amsterdam, met by Head of Delegation Mr Schweisgut

14.00 Coordination Meeting of EP secretariat with Diet Secretariat and EEAS Imperial Hotel, 5th floor, room F

17.00-18.00 Meeting on human rights issues at EU Delegation offices (Human Rights Now, Ms Brepoels, EP secretariat)

18.30- 21.00 Meeting/ reception hosted by Dutch Ambassador Dr. Philip de Heer Venue: Ambassador's residence

Wednesday 18 May 2011

08.30-09.30 Briefing by the EU Delegation to Tokyo, led by Ambassador Schweisgut

CR\872716EN.doc 10 PE465.370v01-00 Venue: Imperial Hotel, 5th floor, room A

10.00-10.30 Courtesy call on Mr Takashi Shinohara, Senior Vice-Minister of Ministry of Agriculture, Forestry and Fisheries Venue: MAFF, 1-2-1, Kasumigaseki

12.15-13.45 Lunch hosted by Senior Vice-Minister for Foreign Affairs Mr Yutaka Banno Venue: Iikura Kokan

14.00-15.00 Courtesy call on H.E. Mr Takahiro Yokomichi, Speaker of the House of Representatives Venue: Drawing room of the Speaker's office, Diet

15.00-16.00 Courtesy call on H.E. Mr Takeo Nishioka, President of the House of Councillors Venue: Drawing room of the President's office, Diet

16.30-17.00 Call on Mr Hideo Hiraoka, Senior Vice Minister of Internal Affairs and Communications Venue: MIC building, 2-1-2 Kasumigaseki

17.15-17.35 Call on Mr Banri Kaieda, Minister of Economy, Trade and Industry Venue: METI ministry

18.30-20.30 Reception offered jointly by the EU Delegation and the EP Venue: Tsuru Room, Imperial Hotel

Thursday 19 May 2011

09.30-10.00 Courtesy call on Mr Yoshinori Suematsu, Senior Vice Minister of Cabinet Venue: Mr Suematsu's office

10.30-11.00 One-on-one Press interview between Mr Van Baalen and JIJI Press Venue: "The salon", Imperial Hotel

11.15-12.00 Meeting with representatives of the European Business Council Venue: Imperial Hotel, meeting room A

12.00-13.30 Preparatory lunch meeting of the Chairs of the both delegations Venue: "Les Saisons", Imperial Hotel

CR\872716EN.doc 11 PE465.370v01-00 (Other Members: lunch at "San Applause", Imperial Hotel

(14.00-16:00 plenary session of the House of Representatives)

16:00-18:00 1st working session of the 32nd EU - Japan Interparliamentary Meeting Venue: Diet meeting room

18:30- 20.30 Buffet Reception hosted by the Speaker of the H.R. and the President of the H.C. Venue: Residence of the President of the H.C.

Friday 20 May 2011

7:45 - 8:40 Working breakfast meeting hosted by Interparliamentary league (Members only)

Venue: "Ran" room, Imperial Hotel

09:00-12:00 2nd session of the EU - Japan IPM Venue: Diet meeting room

12:30-13:30 Lunch hosted by the Japanese Diet Delegation Venue: Capitol Tokyu Hotel

End of official meetings

Saturday 21 May 2011

Departures back to Europe

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