>>>> A VIEW FROM AFAR >> Lithuania’s Ambassador Extraordinary and Plenipotentiary to Japan and the Republic of the Philippines, Doctor Habilitatis Algirdas Kudzys Lithuania’s representation in Japan ourteen years ago Japan We approached the Lithuanian Ambassador to Japan and the Re- acknowledged the restoration of public of the Philippines, Dr Habil Algirdas Kudzys, to find out what independence in Lithuania. This year, steps have been taken to increase Lithuanian and Japanese cultural, for the first time, Lithuania will take political and economic co-operation. The ambassador and his colleagues, Fpart in the world exhibition EXPO 2005 in Japan. Asta Chaladauskienë and Vytautas Gaisrys, responded by e-mail to the Although we can hardly notice direct questions of our editor Saulius Gudeliauskas. investments by Japanese companies in Lithuania and Lithuanian businesses cannot – How are you getting with establishing and maintaining business relations and what major obstacles do you encounter? boast great success stories in the Land of the –Lithuania and Japan have had long-lasting governmental, Rising Sun, intensifying cultural exchange and business, cultural and scientific research relationships (2005 will be active political relations are the first positive the 83rd anniversary of diplomatic relations established between the two steps towards future economic co-operation countries). There are quite a few active people and organisations both in between the countries. Lithuania and Japan who try to bring the two nations and countries 8 >>>> A VIEW FROM AFAR closer. However, fifty years of Soviet occupation erased the name of Lithuania delegation, in July, by the Kagawa province business federation Keizai off the world map, and as a result, most Japanese know very little or Doyukai and by a delegation of parliamentarians and Tokyo businessmen nothing about our country. This lack of knowledge about Lithuania brings in September). The Lithuanian Development Agency is also an active fewer Japanese tourists and almost zero Japanese investment to our participant in EU investment promotion seminars in Japan. Participation country compared to other new EU members, which, though being part of in such events is of great importance for dissemination of information the socialist block, retained their independence and maintained regular because Japanese business publications provide little information on contacts with Japan. business conditions in Lithuania. Last March, members of the Japanese Business Federation Keidanren, led by the European Committee Vice-President and NEC – Has the Japanese attitude towards Lithuania changed since computer hardware Company Chairman of the Board Hajime Sasaki, Lithuania’s accession to the EU? visited Lithuania. They met with the managers of the biggest Lithuanian – In my opinion, EU membership is a positive factor in many aspects, companies and representatives of the Lithuanian Confederation of especially for Lithuania’s image in Japan. Here, the EU expansion process Industrialists to analyse the Lithuanian business environment and to had very broad media coverage and people followed it with great interest. look for joint venture opportunities. Keidanren members expressed their This made our small country much more noticeable in distant Japan and approval of Lithuanian economic and social achievements and their hope the Lithuanian identity was presented in a very European context rather for the expansion of bilateral economic relations. During the same month than a Soviet one. the Lithuanian Confederation of Industrialists sent a delegation of 11 EU and NATO membership made Japanese businessmen interested Employees of the Lithuanian Embassy to Japan in April 2005. From left Commemoration of the 85th anniversary of Lithuanian Independence and th >> to right: Kristina Ðaltë, Aurelijus Zykas, Ambassador Algirdas Kudzys, >> the 80 anniversary of diplomatic relations between Lithuania and Japan Asta Chaladauskienë, Vytautas Gaisrys in Tokyo. During the event a concert of reed pipe player Antanas Smolskus and saxophonist Petras Vyðniauskas was held and Kuji Mayor Yoshiaki Kuji (in the centre with his wife) was awarded the Cross of Officer of the Order of Vytautas the Great for merits in the development of Lithuanian – Japanese relations Lithuanian companies to Japan. in the Lithuanian business environment. According to the Lithuanian Lithuanian businessmen who wish to establish business contacts Embassy, the number of business enquiries increased three to four fold. in Japan have to be very patient and should be aware that the Japanese European Union membership gave Lithuanian SMEs the opportunity to market will accept only high quality products. They have to learn to keep take part in the EU export promotion programme “EU Gateway to Japan”. to the terms of their contracts. This is extremely important - quite often This EU financed program is an attractive option for Lithuanian companies business contacts are broken as a result of promises which are not kept. that have products suitable for the Japanese market and a clear export On the whole, Japanese businessmen are pleased with the price and the strategy. In April 2005, our fashion designers Sandra Straukaitë, Giedrius quality of Lithuanian products. Indeed, Lithuanian companies are following Šarkauskas, Aleksandras Pogrebnojus and Vida Simanavièiûtë went on other EU producers who are known in Japan for their high quality products. a business mission under the “EU Gateway to Japan” programme. UAB The Lithuanian Embassy in Japan helps Japanese businesses to Contraforma, a producer of exclusive design furniture, is going to Japan in discover Lithuania by arranging visits to our country (in June, Lithuania June. Programme applicants are selected by the EU Commission will be visited by the Hokaido district’s Sapporo Chamber of Commerce and Eurochambres, the EU Association of Chambers of Commerce. > 9 >>>> A VIEW FROM AFAR Ambassadors of European Union member states to Japan with the Chairman of the Japanese Parliament House of Representatives >> Yohei Kono (in the centre of the second row) The programme co-ordinator in Lithuania is the Lithuanian Association and what is the image of Lithuania among the Japanese public? of Chambers of Commerce (LPPARA), which can be contacted regarding – Officially, Japan treats Lithuania as a new EU member and as the terms of participation in “EU Gateway to Japan”. one of the three Baltic States. Although Japan’s foreign policy sees these countries in similar light, officers of the Ministry of Foreign Affairs of – What is the situation regarding Japanese investments and which Japan often express their view that Lithuania has the most active relations Lithuanian products have found a niche in the Japanese market? with Japan. It will be difficult for Lithuania to find its way onto the list of – Japanese investment in Lithuania is very symbolic – the total Japan’s top priority countries in the near future. Over the fourteen years of Japanese investment in our country is under LTL 10 million (which does independence almost every Lithuanian leader has visited Japan – from not include the joint Yazaki and Siemens investment which is, for statistical different ministers, to prime ministers A. Šleþevièius and G. Vagnorius, to purposes, regarded as German). According to the Lithuanian Department the Chairman of the Supreme Council V. Landsbergis, the Chairman of the of Statistics, Japan is not among the fifty biggest investors in Lithuania. Seimas A. Paulauskas and finally our presidents Algirdas Brazauskas At present, seven Japanese capital companies operate in our country; all and Valdas Adamkus. The most memorable of these visits was Lithuania’s of them are Small and Medium Enterprises. first Premier’s after the restoration of independence. Danutë Kazimiera The special trade system data in the Lithuanian Department of Prunskienë’s visit was of great political significance to Lithuania. On the Statistics show that in 2004 Lithuanian exports to Japan amounted to Japanese side, only the Ministrers of Foreign Affairs of Japan Muneo LTL 34.9 million while imports from Japan amounted to LTL 106.4 million. Suzuki and Shigeo Uetake, and Deputy Chairman of the Upper House Compared to 2003 bilateral trade volume has decreased. Actually, bilateral Kozo Watanabe have visited Lithuania. Nevertheless, Lithuania is currently trade between these two countries is not stable, no visible tendencies can establishing its position in the list of Japan’s priority countries. Awareness be observed due to extreme fluctuation of trade volumes. of its geopolitical identity is also increasing. For instance, a year ago, Lithuania mainly exports furniture, textile and diary products, but the structures of the Ministry of Foreign Affairs of Japan dealing with small amounts of high added value products such as lasers and optics are bilateral Japanese relations were reorganised due to EU expansion. also exported to Japan. Imports from Japan include cars and electronic Lithuania, Latvia and Estonia were relocated to the Western European products. Department of the European Affairs Office which includes all the Scandinavian countries, the United Kingdom and the other EU old- – What is the Japanese government’s official view of Lithuania guard. The other new EU members are handled by the Central and South- 10 >>>> A VIEW FROM AFAR eastern European Department. This simple example illustrates the new is not only highly valued and nurtured but also plays a significant