Recommendationsof theEU-Japan Business Round Table
to the Leaders of the European Union and Japan
Brussels, 15 May 2019
Working Party 3
Digital Innovation and Mobility

Working Party Leaders:Mr. Frédéric SANCHEZ
Chairman of the Executive Board
Fives Group

Working Party 3: Digital Innovation & Mobility
EU-Japan BRT 2019 Recommendations Report (Final)
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Fujitsu Limited

List of Abbreviations
Abbreviation
AI
BASA
BRT
CL
DEI
DFFT
DSM
EASA
EPA
EU
FLM
GDPRHPCICTIFRINATBA
IoT
ITA

Meaning
Artificial Intelligence
Bilateral Aviation Safety Agreement
EU-Japan Business Round Table
Copyright Levies
Digitising Europe Industry
Data Flow with Trust
Digital Single Market
European Aviation Safety Agency
Economic Partnership Agreement
European Union
Forced Localization Measures
General Data Protection Regulations
High Performance Computing
Information & Communications
Technology
Instrument Flight Rules
International Association for Trusted
Blockchain Applications
Internet of Things
Information Technology Agreement

M2M Machine to Machine
NIS Network Information Security
OECD Organisation for Economic Co-operation
and Development
SME Small and Medium-sized Enterprise
R&D Research and Development
WP Working Party
WTO World Trade Organization

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Introduction
Digital Sector
Digital technologies such as IoT, Big Data, AI, Blockchain, 5G and Robotics aretransforming business and society. These digital technologies have huge potential
to achieve the SDGs. The EU and Japan have positioned the digital agenda at theheart of their respective growth strategies while reviewing and implementing
appropriate regulations to foster digitalization.
Significant progress has been made on both sides. Under the Digital Single Market
strategy, many regulations have been implemented in the EU and the BRT expects
that the next European Commission will also make efforts to further develop the
Digital Single Market. The Japanese Government has launched a flagship policy
programme based on the concept of ‘Society 5.0’ where the effective use of cuttingedge technologies such as AI, Robotics, IoT and Blockchain in every industry andaspect of social life enables us to harness human creativity and create a newsociety of the future.
It is significant for the digital relationship between the EU and Japan that the EUJapan EPA came into effect on 1st of February 2019 as well as the complimentary
mutual adequacy recognition of data protection regulations on 23rd of January 2019.
This provides a unique building-block for the EU and Japan to advance a common
agenda at global level. The BRT expects further cooperation between EU andJapan on the digital agenda.
The Japanese Government has put forward the concept of “Data Free Flow with
Trust (DFFT)”. Our view is that promoting free cross-border data flows will be vital
not just for the digital industry but for many other industries as well. Thus, EU andJapan recognize the importance of promoting free flow of data, in particular byenhancing privacy, data protection and thereby ensuring confidence and trust in thedigital economy. In order to maximize the opportunities presented by the G20
meetings in Japan and G7 meetings in France this year, the EU and Japan shouldtake coordinated actions based on common principles towards global digitalrulemaking. This will ensure that to the potential of social transformation by digitaltechnology can be exploited and can involve other international forums such as theOECD and WTO.
To embrace the power of digital technology, both authorities are required to work
together more closely. The publication of EU Ethical Guidelines on AI in April 2019
and the discussion of Japan’s Principles of Human-centric AI society are good
steps in the right direction. Further EU-Japan cooperation could bring about adigital transformation that is positive, sustainable and beneficial for all. By bringing
together all stakeholders and civil society in an open debate it will be possible toreap the benefits of new and emerging technologies such as AI and Blockchain.
In addition, it will be crucial to support the creation of effective stakeholder’
platforms at an international level to foster public-private cooperation on key
technologies. The INATBA (International Association for Trusted Blockchain
Applications) is a good example that should be supported by many countries andreplicated.

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The BRT thinks that all digital related policies should take into consideration
globalization and inclusive growth. In addition to sharing a common recognition of
the impact of digital technologies on society, jobs and the economy, the EU andJapan should specify the areas for cooperation and endeavour to create concrete
projects.
Role of Innovation
The EU and Japan face similar societal challenges such as aging populations andclimate change. To address these complex global issues, governments should
foster their cooperation and harness the innovation capacity of the private sector by
fostering a better R&D business environment. Given the critical roles of digitaltechnology, such as IoT, in supporting other sectors, the BRT urges both authorities
to mobilize all necessary tools for the development and deployment of innovative
solutions and products.
Funding programmes such as Horizon 2020, the new Horizon Europe (2021-2027)
and its Japanese counterpart. Programmes for International Cooperation on
Research and Innovation should increase the efforts towards open collaboration
between the EU and Japan. Funding programmes to finance innovation andcollaboration are crucial. Supporting the participation of both SMEs and larger
companies is essential for the success in adopting the results of R&D Public
Programmes and convert them into economic growth and jobs creation. Developing
new mechanisms to help to facilitate new R&D outputs to the market is a further
area of focus.
Facilitating bilateral R&D collaboration and pilot projects with the participation ofacademia, public and private sectors will contribute to the creation of innovative
products and services that can be deployed in both regions and also in the rest of
the world. The BRT encourages the European Commission and the Japanese
Government to keep on investing in common calls for proposals on projects such as
the EU-Japan Horizon 2020 Calls for proposals that also should be present in theWork Program 2018-2020 and in the next Framework Programme.
The BRT also suggests fostering EU-Japan Programmes for a mutual exchange of
Researchers, PhDs and students in order to allow for better collaboration inparticular in certain areas of common interest such as Healthcare, Robotics, IoT
and HPC.
Regulatory cooperation between the EU and Japan will also facilitate thedeployment of new services and products.
5G, open innovation and startups are new contributions to innovation for which
fields cooperation between Europe and Japan is crucial.
Big events like Olympic Games and World Cups are major opportunities toaccelerate cooperation between Europe and Japan with regard to digital innovation.

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Aeronautics
EU and Japanese industries are major suppliers to the global aeronautics market.
Both, however, are challenged by aggressive new entrants. In this context, joint
technology and project development is necessary for both sides to maintain theirtechnological leadership and competitiveness. EU-Japan industrial cooperation
already exists in helicopters and aeroengines, but there is much more potential.
More government-led cooperation and continued support from both authorities isneeded to help the European and Japanese aircraft industries bring to fruition thedevelopment of their relationship while meeting the EU's environmental, social, andsafety requirements.
Space
EU and Japanese space industries are major suppliers of space products andservices. The global commercially accessible space market, however, is small withlimited growth prospects. As government budgets remain low and competition
increases, mutually open markets and cooperation are a possible opportunity for the
EU and Japan to achieve their goals in space and for their industries to realize theirfull potential in the global market. We are satisfied with the meetings of the EU-Japan
Space Policy Dialogue and want them to continue on a regular basis.

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Recommendations from both
European and Japanese industries
Digital Innovation

WP-3 / # 01* / EJ to EJ

Cooperation for Global Digital Trade Rule Making

The BRT calls on the EU and Japanese Authorities to:Continue to enhance EU-Japan ICT dialogue between governments as well aswith the private sector in order to facilitate the free flow of data between the EU,
Japan and other parts of the world.



Align future EU digital public policies with the concept of ‘Society 5.0’, which isJapan’s flagship policy programme to build a super-smart society that addresses
environmental, social, and economical challenges by the promotion of cuttingedge technologies such as AI, Robotics, IoT and Blockchain into every industry
and aspect of social life.



Agree on the text on the free flow of data at next EU-Japan EPA review expected
within three years of the EPA coming into force.



Lead global rule making with coordinated approach at several international fora
such as G7, G20, OECD, and WTO.



Develop a high standard for WTO rules on e-commerce building upon the jointstatement of 76 members on 25th of January at the WEF Davos meeting in 2019.



Incorporate provisions to restrict digital protectionism such as Forced Localisation
Measures (FLM), prohibit tariffs and taxes on digital products and services,
ensure free access to the internet, improve market access, prohibit arbitrary
access by governments to information held by private sector including personal
data and trade secrets to trade agreements.



Cooperate to increase the number of member countries for an ITA/ITA expansion
and coordinate with regard to third countries’ violation of WTO binding
commitments based on ITA/ITA Expansion.

The BRT believes that:

The agreement of the EU-Japan EPA and adoption of mutual adequacy
decisions provide a unique building-block for the EU and Japan to advance acommon agenda at global level. This includes promoting the free flow of data
across borders in line with Prime Minister Shinzo Abe’s concept of DFFT. DFFT
was introduced at the World Economic Forum in Davos in January 2019 andemphasizes the importance of trust that facilitates free flow of data.

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Page 6 of 16With rising protectionist sentiment and a growing undercurrent of distrust
surrounding trade, the EU and Japan are required to demonstrate that improved
trade relations can bring great value to the mutual benefit of economy andsociety.

The principles of free flow of data and the avoidance of mandatory requirements
for data localization will be one of the foundations of the digital economy.

WP-03 / # 02 / EJ to EJ

Privacy Protection for Trusted Digital Society

The BRT calls on the EU and Japanese Authorities to:Ensure the adoption and implementation of the ePrivacy Regulation is done incoherence with the GDPR of the EUEnsure that the definitions and possible impact on M2M data transfers does nothamper innovation and digital solutions.

Strengthen the EU-Japan dialogue so as to create consistent personal dataprotection regimes around the world e.g. by promoting discussions in relevant
multilateral fora.

Promote interoperability of risk-based security and privacy protection standards
across jurisdictions and align the implementation of their regulations so as tocreate a trusted, harmonized and future proof set of data protection environments
and to ensure the free flow of data across borders.



Enhance cooperation with third countries and international organizations to fightagainst digital protectionism.

The BRT calls on the EU Authorities to:Establish a mechanism for the smooth transfer of data between the EU and theUK.

The BRT believes that:

Modern and flexible regulations which encourage data utilization by the private
sector and interoperability of risk based security and privacy protection standards
across jurisdictions have the potential to act as a catalyst for growth, jobs,
innovation and trust in digital services and solutions.



As concerns with regard to privacy protection have arisen, differences inregulations by countries in various jurisdictions have caused an increase incompliance costs and have become obstacles to efficient global operations anddata-driven innovations.

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WP-3 / # 03* / EJ to EJ

Cybersecurity for Trusted Society

The BRT calls on the EU and Japanese Authorities to:

Pursue international harmonization in the field of cybersecurity, especially the
inclusion of global recognized standards in the EU cybersecurity certification
schemes.



Align a coherent regulatory cybersecurity framework with Japan (incl. regarding
certification and labelling of IoT devices and services).

Ensure the private sector is duly consulted for the development of cybersecurity
certification schemes;

Reinforce cybersecurity capabilities – in that regard EU and Japan authorities are
required to enhance both the development of skills in human resources and thetechnologies to cope with the speed and complexities of cyberattacks.

Adopt a voluntary risk-based certification mechanism.

Address global supply chain cybersecurity risks.

Conduct cybersecurity educational activities to raise awareness of society andbusinesses.

The BRT believes that:

Security is necessary as a precondition for creating value in cyberspace. A
prosperous digital society is enabled where trust exists. A Data utilization society
achieved by initiatives such as Digitizing European Industries, Society 5.0 andConnected Industries will improve convenience. But without taking appropriate
measures, it will increase vulnerability.

A Global coordinated approach is effective in coping with high-level attacks. An
information sharing scheme with regards to security incidents should be createdbetween the national contact points in each EU Member States based on the NIS
directive on the one hand and Japan on the other.



Cloud computing services are within the scope of the NIS Directive. Detailed
provisions will be specified by EU Member States. The NIS Directive is a vital
Directive to mitigate risks of Cyber Attacks. The European Commission should
work to ensure a harmonised implementation in the Member States.

WP-3 / # 04 / EJ to EJ

Social Deployment of AI Technology

The BRT calls on the EU and Japanese Authorities to:Support initiatives aiming at creating a better understanding of the potential of AIbased solutions such as through discussion fora with stakeholders, publicdebates with experts and researchers open to civil society, public consultations
with strong use of online platforms and social media to reach and involve citizens,
open strategies for AI where organisations can add expertise and comments.

Use global fora to foster an international common understanding of holistic,

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Page 8 of 16human- centred, and future-oriented AI– also by using bilateral initiatives so thatas many as possible are able to benefit from AI.
Oppose policies that pre-emptively limit or ban AI technologies throughunsubstantiated prejudices and harmful speculation; instead support extensive
testing of AI technology solutions across different use cases/business sectors.

The BRT believes that:

The efforts and work done by both EU and Japan in order to align on AI
Principles and Ethics will pave the way for a social acceptation of AI.

Both government and industries need to innovate, to support a positive,
sustainable and beneficial digital transformation for all,

Also, they need to work together to adapt to technological disruptions, which bytheir nature are difficult to predict beforehand.

WP-3 / # 05* / EJ to EJ

Skill Development for Digital Economy

The BRT calls on the EU and Japanese Authorities to:Take actions to build innovative ways to create new skills for new jobs andprepare all generations to gain benefits and enhance confidence in digitaltransformation including social acceptance of AI and other new technologies.



Fund education programs at all levels dedicated both to young students andworkers to support the creation of the skills which are necessary to fulfil therequirements of the new job opportunities coming from new technologies. An
exchange program and a common effort to train the trainers should also be
promoted.

The BRT believes that:

New technologies such as AI and Robotics should be perceived as newopportunities to create better jobs and economic growth. To keep all generations
close to the new jobs market conditions it is crucial that all actors (Universities,
Digital Clusters, Governments, Public Authorities, Unions, Industry and SMEs
associations) work together to find solutions to guarantee a harmonised match
between offer and demand for new jobs and avoid resistance to change andinnovation.

WP-3 / # 06 / EJ to EJ

Creating a Blockchain-friendly Environment

The BRT calls on the EU and Japanese Authorities to:Create a blockchain-friendly environment that enables businesses andconsumers to be part of the blockchain landscape and promote strong
international cooperation to remove legislative obstacles to blockchain
applications and solutions across borders.

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The BRT believes that:

The blockchain technology has the potential to disrupt many markets as its
properties enable new forms of user participation and new business models;

Immutability of the data will lead to smart, automatically enforceable, contracts
under which the authenticity of the data is clear;

Although the principle of technology neutrality means that the same regulatory
principles should apply regardless of the technology used, some changes shouldbe blockchain specific, if the advantages of the blockchain are to be fully utilized

The BRT welcomes the initiative of the European Commission of promoting thecreation of INATBA (International Association for Trusted Blockchain
Applications).

WP-3 / # 07 / EJ to EJ
Fundamental Reform of the Private Copying Levy
System (Compensation System for Private Copying)
The BRT calls on the EU and Japanese Authorities to:

Cooperate to thoroughly reform the levy system with regard to private copying
taking into account the evolution of technology and distribution channels forlawful digital content consumption. Expansion of the current levy system to anincreasing number of devices and cloud services should be avoided. Instead any
new levy system must be based on independent studies that show use anddemonstrate harm.

The BRT believes that:

Any review for reform should consider, in a comprehensive manner, alternative
methods available to secure compensation of rights’ holders and creators fromprivate copying as well as the development of licensed cloud-based content
streaming models. The goal should focus on reforming the system in a way to be
more transparent, predicable, balance, avoid distortions, and fair to consumers,
rights holders, and service and equipment providers at the same time. In order toachieve these goals, we recommend, especially to EU policy makers:
1. Keep a close look at copyright levies developments in the Members Stateswith a view to prevent internal market distortions
2. Ensure that Member States properly implement the EU legislation and caselaw;
3. Come forward with a recommendation for a clear and common approach tothe calculation and application of CL.

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WP-3 / # 08 / EJ to EJ
All (5G)

Updating Connectivity for Digital Transformation for

The BRT calls on the EU and Japanese Authorities to:

Reinforce initiatives regarding sharing of progress towards 5G commercial
service, e.g. through sharing of trials plans and results.



Reinforce cooperation regarding these initiatives and promote events in thisdomainThe BRT believes that:

Ensuring connectivity available for all is instrumental to enjoying the benefits ofdigital transformation.



5G is a key pillar for accomplishing Society 5.0. Governments should establish
policy frameworks to encourage the necessary investment from businesses andto ensure that trustworthy and secure 5G infrastructure will be available to all ona sustainable and market-oriented basis without delay.



5G has important consequences in all fields of industry not only for innovative
services but also to tackle various global challenges such as natural disaster andinfectious diseases where vast amount of relevant trustworthy data and analysis
are required across borders.

WP-3 / # 09 * / EJ to EJ

R&D cooperation

The BRT calls on the EU and Japanese Authorities to:Maintain and reinforce strong EU R&D programmes such as Horizon 2020 andits successor, Horizon Europe, that are open to the international community, andto ensure these programmes support international standardisation, notably
standardisation in advanced manufacturing, the Internet of Things andcybersecurity.



Offer more initiatives supporting open innovation between large companies,
universities and startups.



Share information regarding the main initiatives in this domain with a focus on
initiatives sponsored respectively.

The BRT believes that:

Innovative solutions and products can contribute to the realization of aprosperous digital society only after social deployment is completed. Therefore
seamless and comprehensive approaches from innovation creation to social
deployment are required. Regulatory cooperation between the EU and Japan will
facilitate digitalization of the society by the deployment of new services andproducts in both regions

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Page 11 of 16Big events such as Olympic Games or World Cups offer opportunities forinnovative solutions.

WP-3 / # 10* / EJ to EJ

Cooperation Towards Digital Economy

The BRT calls on the EU and Japanese Authorities to:

Foster digitalization of SMEs and participation to digital economy.

Foster key collaborative projects under Digitising European Industry (DEI) andConnected Industries.

The BRT believes that:

The framework for cooperation in the Digitising European Industry (DEI) should
be expanded to allow for an exchange of ideas, best displayed in the Digital
Innovation Hubs. Bottom up innovation is crucial here as it will allow the various
stakeholders to play to their strengths.

The central goal of DEI is to ensure new technologies are integrated andexpanded throughout the European economy. An essential condition for success
rests in collaboration between various actors.

Taking note of the European Commission’s 2017 Digital Transformation
Scoreboard, we must ensure cybersecurity is central in our efforts regarding the
DEI initiative. We must create a safe environment for both businesses andEuropean citizens.

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Aeronautics

WP-3/ # 11/ EJ to EJ
Aeronautics

Government-Led Industrial Cooperation in

The BRT calls on the EU and Japanese Authorities to:Establish a permanent dialogue aiming to significantly upgrade the scale of EUJapan industrial cooperation in aeronautics based upon mutual trust, equality andmutual benefits, and stimulated by government funding. This should include a
broad cooperation on environmental issues.

WP-3 / #12 / EJ to EJ

Cooperation in Aircraft Certification

The BRT calls on the EU and Japanese Authorities to:Upgrade cooperation between Japanese and European aircraft certification
authorities. Specifically, the BRT recommends the rapid signature of a Bilateral
Aviation Safety Agreement (BASA) between the JCAB and the EASA establish
quickly, incorporation of a maintenance activities appendix following signature of
the certification appendix that would cover both type certification andmaintenance activities.

WP-3 / # 13/ EJ to EJ
Helicopters

Cooperation on Navigation Regulations for

The BRT calls on the EU and Japanese Authorities to:Establish an increased level and better cooperation between Europe and Japan
regarding the development of low altitude IFR routes and satellite basednavigation regulations for helicopters.

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SpaceWP-3 / # 14 / EJ to EJ

Regulatory Cooperation in Space Operations

The BRT calls on the EU and Japanese Authorities to:Not lose the momentum and continue to cooperate closely on regulatory mattersin the space sector.

The BRT believes that:

Mutually open markets and cooperation are a possible opportunity for the EU andJapan to achieve their goals in space and for their industries to realize their fullpotential in the global market.
The EU-Japan Space policy Dialogue significantly promotes cooperation inSpace and should thus continue on a regular basis.

WP-3 / # 15 / EJ to EJ
Technological and industrial cooperation on
Japanese and European next generation of launch vehicles
The BRT calls on the EU and Japanese Authorities to:Strengthen technological and industrial cooperation in the framework of thedevelopment of the products and services related to space sector including next
generation launch vehicles.

The BRT believes that:

There is a similarity regarding the environment surrounding Japanese andEuropean national launchers: Both have the responsibility vis-à-vis each
respective government to guarantee an independent access to space and due toinsufficient institutional demands, both have to be commercially competitive inorder to maintain a sufficient number of launches.



Due to the rapidly emerging new satellite applications, continuous improvements
are required for both the Japan and the EU in order to be competitive in thecommercial market. As a lot of similar hardware developments are required insuch improvements, Japan-EU cooperation is indispensable in quick and costeffective developments.

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Recommendations from
European industry
Aeronautics

WP-3 / # 16 / E to J

A380 day-time operations at Haneda airport

The BRT calls on Japanese Authorities to:Allow A380 day-time operations at Haneda.

The BRT believes that:

Haneda is the preferred gateway for visitors to Japan. With the continuing
impressive growth of traffic into Tokyo, Haneda needs larger aircraft such as theA380 to accommodate the growth in traffic.

The main issue that has been identified for day-time operation of the A380 at
Haneda is the wake vortex. EASA, the European Airworthiness Authority, hasdeveloped a methodology (EU-Recat) that allows to maximise the operation of
the A380 into airports such as Haneda. EU-Recat is used successfully in otherheavily congested airports around the world, such as Heathrow and Dubai.

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SpaceWP-3 / # 17 / E to J

Mutual Backup of Government Satellite Launches

The BRT calls on the Japanese Authorities to:Bring about a mutual backup cooperation scheme of government launches using
Japanese and European launcher fleets.

The BRT believes that:

The International Space Station future automated cargo spacecraft HTV-X could
benefit from a back-up launch service aboard the future European Ariane 6
launch vehicle.

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