Recommendationsof theEU-Japan Business Round Table
to the Leaders of the European Union and Japan
15 November 2022

Working Party 3
Digital Innovation and Mobility

Working Party Leaders:Mr. Frédéric SANCHEZ
Chairman of the Executive Board
Fives GroupMr. Hidenori Furuta
Representative Director, COO &CDPOFujitsu Limited

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List of Abbreviations
Abbreviation
AI
BASA
BRT
EASA
EPA
EU
GDPR
ICT

Meaning
Artificial Intelligence
Bilateral Aviation Safety Agreement
EU-Japan Business Round Table
European Aviation Safety Agency
Economic Partnership Agreement
European Union
General Data Protection Regulations
Information & Communications
Technology
IFR Instrument Flight Rules

IoT
ITA
MC
NIS
SME
R&D
WP
WTO

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Internet of Things
Information Technology Agreement
Ministerial Conference
Network Information Security
Small and Medium-sized Enterprise
Research and Development
Working Party
World Trade Organization

Introduction
Digital Innovation
The BRT believes that building social acceptance among stakeholders including
citizens, business and organizations across countries and sectors is essential toachieve digital transformation through the social implementation of digitaltechnologies. It is necessary for society to properly understand the technologies andenhance the social implementation and application of new technologies. The BRT believes
that everyone can benefit from digital transformation by engaging in open
discussions with stakeholders, including civil society.
The BRT acknowledges that the EU and Japan recognize the importance ofpromoting the free flow of data with trust in companies and society.
G7 2022 Digital Minister’s Meeting adopted a Joint Declaration on promoting the Data
Free Flow with Trust (DFFT) and the Cyber Resilience of Digital Infrastructure. Japan
will chair the G7 in 2023. The BRT expects further cooperation between the EU andJapan, and international leadership in the field of digital transformation.
The BRT supports the European Commission Digital Strategy objectives and moregenerally the European Commission strategic priorities where Green & Digital
Transition together with a strong emphasis on democracy, human rights, andinternational cooperation.
The BRT also welcomes the establishment of the Digital agency in Japan in
September 2021 and Vision for a Digital Garden City Nation
BRT is also supporting initiatives that aims to build digital sovereignty and believes itshould not be a tool for protectionism which prevent market access for companies
and investments on new technologies and R&D project and programmes such as
Horizon Europe, Digital Europe and other Public/Private initiatives.
In Cybersecurity and other key topics such as Artificial Intelligence, it is important towork together on standards that are shared and applicable at international level. The
same goes for regulatory cooperation and mutual support on R&D investments andprogrammes following some good initiatives between the EU and Japanese
Government.
The BRT values the Japan-EU Digital Partnership as a comprehensive digital
initiative between the EU and Japan. The several channels of institutional andtechnical discussion must be reinforced to provide companies and citizens with more
opportunities for investment and growth between the two regions.
Additionally, digital innovation and artificial Intelligence development have beensteadily gaining traction during the last few years. While EU and Japan haveacknowledged and supported this domain, many barriers remain for SMEs in thatspace who wish to expend abroad. Reinforced initiatives and support should beconsidered to help them fully develop and mature while promoting a more connected
and developed ecosystem, providing stronger growth potential and opportunities.
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Aeronautics
The Covid-19 pandemic has had a huge impact on passenger air transport and amore limited impact on airfreight. Consequently, demand for aircrafts has decreased
impacting aeronautics industries. Return to pre Covid-19 situation will probably takefew years.
That said, 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.
In perspective of post Covid-19 world economies recovery, that will spur aircrafts
demand, more government-led cooperation and continued support from both
authorities is needed to help the European and Japanese aircraft industries bring tofruition the development of their relationship while meeting the EU's environmental,social, and safety requirements.
Space
EU and Japanese space industries are major suppliers of space products and services.
The global commercially accessible space market is expected to grow.
However, as government budgets remain low and competition increases, mutually
open markets and cooperation are a possible opportunity for the EU and Japan toachieve their goals in space and for their industries to realize their full potential in the
global market. We urge to resume the meetings of the EU-Japan Space Dialogue ona regular basis in order to collaboratively accelerate this dialogue for make Japan &EU space industry more competitive.
Mobility
With the development of electric cars, demand for car batteries is increasing andmanufacturing batteries becomes a strategic issue. EU and Japanese industries shallcooperate to be able to preserve sovereignty on batteries production.
Demand for energy is increasing with the world’s population growth. As urbanization
progresses, demand for electricity is increasing. These are also among the industries
where achieving net zero carbon is hardest. As other parts of the global economy
decarbonise, they will contribute a more significant proportion of remaining emissions
unless the technologies and the infrastructures underpinning them are completely
reimagined.

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Recommendations from Both
European and Japanese Industries
Digital Innovation

WP-3 / # 01* / EJ to EJ
Strengthening the EU-Japan Cooperation to Realize the DFFT
A) Cooperation in Rulemaking on Global Digital Trade
The BRT calls on the EU and Japanese Authorities to:•

Stay committed to free trade and multilateralism and develop a high standard, suchas cross-border data flows, prohibition of data localization requirement and accessrequirement of source code and algorithm, non-discriminatory treatment of digitalproducts, and moratorium on customs duties on electronic transmissions, for WTO rules
on e-commerce to secure the strongest possible commitments for confronting
barriers to trade and facilitating the development of strong, interoperable regulatory
frameworks in areas like privacy and cybersecurity.

•

Work together with industry and like-minded governments to address third-party
country policies and practices that create unfair competitive conditions, such as
unfairly limiting data movement, distorting subsidies, unreasonably enforced data
localization measures, other requirements for using local servers and software,requirements for transferring and accessing sensitive information such as source
code, algorithm and encryption, and unrestricted and disproportionate access bygovernments to personal data held by private companies.

•

Avoid expiration of moratorium on customs duties on electronic transmissions
which was agreed on MC12 and continue to lead in seeking a permanent
moratorium on customs duties on electronic transmissions.

•

Cooperate in the development of government access rules for personal data heldby the private sector.

•

Work with industry and like-minded governments to craft a balanced approach tomultiple sector data flows in trade agreements and international frameworks thatguarantees a high level of data protection and allows in-vehicle, mobility, andindustry data to flow freely across borders to realize the Data Free Flow with Trust.

The BRT believes that:•

The thirteenth WTO Ministerial Conference (MC13) will be a very important
meeting to drive global digital trade rule negotiation.

•

Agreement of the EU-Japan EPA and adoption of mutual adequacy decisions forthe protection of personal data provide a unique building-block for the EU andJapan to advance a common agenda at global level. In addition to mutually
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promoting digital innovation and transition, efforts to promote digital trade rules atthe WTO and in FTAs are necessary to support level playing fields and long-term
growth perspectives.

WP-3 / # 01* / EJ to EJ
Strengthening the EU-Japan Cooperation to Realize the DFFT
B) Cooperation through EPA and Digital Partnership between Japan and the EU•

Agree on a text to facilitate the free flow of data between Japan and the EU at thetime of the next review scheduled within three years of the entry into the EPA andseek adding prohibition of data localization requirement and non-discriminatory
treatment of digital products which helps reducing barriers and issues of dataflow.

•

Start a dialogue between two regions in the Digital Partnership to create mutual
understanding of current and future regulatory framework including: data
governance and rules including IoT data, Open data, and standards, aiming for
future cooperation and agreement in the regulatory cooperation framework of theJapan-EU EPA between authorities to eliminate legal uncertainties andcomplexities associated with the de-centralized data sharing across sectors andregions.

WP-3 / # 01* / EJ to EJ
Strengthening the EU-Japan Cooperation to Realize the DFFTC) Support for Social Implementation•

Take strong leadership to forming data ecosystems to achieve policy goals suchas green, health and mobility.

•

Promote cross-regional projects by enabling interoperability that promote datadriven economy through decentralized data sharing.

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WP-3 / # 02* / 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, in particular thealignment between the EU cybersecurity certification schemes and regulatory
cybersecurity framework in Japan and integration of the international standards
including certification and labelling of IoT devices and services.

•

Request that both authorities take the lead in introducing new security technologies
for the quantum computer age.

The BRT believes that:•

Security is necessary as a precondition for creating value in cyberspace and therealization of digital transformation. Without taking appropriate measures, however,risks of increasing vulnerability might hold it back, or even seem to outweigh its
benefits.

•

Cybersecurity policy should be built on a shared responsibility in private and public
sectors.

•

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 and NIS2 Directive on the one hand and Japan on the other.

•

The European Commission should work to ensure a harmonised implementationof NIS2 in the Member States.

•

The EU’s approach to establish cybersecurity certification schemes for ICT, Cloud,
AI and 5G would be a great benefit to develop a safer society where IT is
penetrating and indispensable. Having said that, the EU should make full use ofand, if needed, amend existing regulations to the minimum extent so that industry
can comply with new regulations without any unnecessary burdens. For low-risk
products, regulations should allow for self-assessment and self-declaration. In
addition, whether new cybersecurity schemes would be mandatory or not shalldepend on the risk level which also makes us believe that it must be clearly definedwhat cybersecurity risks are in products/services or usage scenes.

•

The advent of the quantum computer age is expected to make existing
cryptography obsolete. New security technologies for the quantum computer age
are now in the stage of practical application, and the introduction of thesetechnologies will benefit both the public and private sectors. The EU and Japan
should further promote technology cooperation as trusted partners.

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WP-3 / # 03* / EJ to EJ
Technology

Social Implementation of human-centered AI

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

Support, develop, and implement human-centered, trusted AI applications toprotect citizens' fundamental rights.

•

Recognize that AI technologies are constantly evolving and require ongoing
discussion efforts, and that innovative governance with agility and flexibility isneeded to encourage innovation and to avoid and mitigate negative impacts onsociety. Regulatory measures should be limited to AI that creates truly serious risks,
while ensuring legal stability and predictability while clarifying the scope of
regulations, their rationale, and methods for measuring and assessing risks.

•

Avoid imposing responsibilities of risk management and legal liability only on AI
system developers, recognizing the facts that AI technology itself is neutral andcan be both a problem and a solution depending on how it is used.

•

Strengthen cooperation on AI standardization between the EU and Japan (JISC),
promote the development and deployment of human-centered and reliable AI in
both regions, and cooperate with international standards organizations (ISO/IEC
JSC).

•

Avoid policies that pre-emptively restrict or prohibit potentially beneficial AI
applications, including remote biometrics, without clear evidence that specific AI
applications pose high risks to safety, health and fundamental rights.

•

Enables broad AI application testing across different use cases and businesssectors to ensure positive impact and reduce negative impact of AI applications.

•

Enhance open and transparent dialogue with citizens of all generations andsegments to avoid misunderstandings and highlight the social benefit of AI.

•

Build bridges and links between existing public institutions and networks tocentralize key information and facilitate SME expansion into new markets whenaddressing innovative topics (Example: Establish, hire, or introduce a subsidiary).

The BRT believes that:•

Discussions about the potential risks of AI applications have only just begun invarious industries, and it is premature to expect convergence. The concept of “risk”
varies across industries and should be consistent with existing concepts.

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WP-3 / # 04 / EJ to EJ•

ITA/ITA Expansion

Cooperate in expanding ITA/ITA by increasing the number of member countries
and expanding the scope of products covered, and coordinate violations of WTO
binding commitments by third countries based on ITA/ITA expansion.

WP-3 / # 05 * / EJ to EJ

Updating Connectivity for Digital Transformation forAll

The BRT calls on the EU and Japanese Authorities to:•Strengthen cooperation between the EU and Japan in advanced research anddevelopment towards 6G.

•

Promote open 5G networks, encourage free and vigorous competition in the 5G
equipment market, and enhance the resilience of the supply chain.

•

Share good use cases of application using 5G network.

•

In the development of 6G, it is necessary to promote the development oftechnologies and applications that will be realized on 6G in parallel.

The BRT believes that:•

Ensuring availability of high speed and reliable connectivity for all is a necessary
condition so that all citizens are able to enjoy the benefits of the digitaltransformation.

•

5G and expected 6G are key technology for accomplishing the Society 5.0.
Governments and the EU institutions should establish without delay policy
frameworks to encourage the necessary investment from businesses and toensure that trustworthy, open and secure 5G/6G infrastructure as well as optical
networks that support these 5G/6G infrastructure will be available to all on asustainable and market-oriented basis.

•

5G and 6G have important consequences in all fields of industry not only forinnovative services, but also to tackle various global challenges such as climatechange, natural disasters and infectious diseases as a vast amount of relevant andtrustworthy data and analysis are required across borders to tackle thesechallenges.

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WP-3 / # 06 / EJ to EJ
Development of Next-Generation Computing Infrastructure
The BRT calls on the EU and Japanese Authorities to:•

Promote the development of next generation computing infrastructure that can beused for industrial purposes.

•

Strengthen research collaboration between Japan and the EU on next generation
computing technologies such as quantum computing.

•Strengthen investment towards development and social implementation ofsolutions that contribute to solving local problems by utilizing the next generation
computing infrastructure.

The BRT believes that:•As the global environment becomes increasingly uncertain and social issues
become more complex, it is becoming more and more important to utilize a variety
of data to solve problems and create new value.
•

Establishing next generation computing platforms with advanced computing
capabilities, such as to; HPC, AI, pseudo quantum, and quantum computing;and creating an environment that can be used by many users will greatly
contribute to solving complex social issues and realizing innovation.

WP-3 / # 07* / EJ to EJ

Skill Development for Digital Economy

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

Take actions and invest to raise awareness and educate for all generations to gain
benefits and confidence in digital transformation including cyber security, AI,
Robotics Simulation, Multiverses and so on.

•

Support the creation of the skills which are necessary to fulfil the requirements of
the new job opportunities coming from new technologies.

•

Foster digitalization of SMEs and participation in the digital economy.

The BRT believes that:•

New technologies such as AI Simulation and Robotics should be perceived as newopportunities to create jobs and economic growth.

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WP-3 / # 08 / EJ to EJ
Fundamental Reform of the Private Copying Levy System (Compensation
System for Private)
The BRT calls on the EU and Japanese Authorities to:•

Cooperate to thoroughly reform the levy system about private copying considering
the evolution of technology and distribution channels for lawful consumption ofdigital contents. Expansion of the current levy system to an increasing number ofdevices and cloud services should be avoided. Instead, any new levy system must
be based on independent studies that show the actual use of copyrighted works
and demonstrate the harm to the right holders resulting from the use.

The BRT believes that:•

Any review for reform should consider, in a comprehensive manner, alternative
methods available to secure adequate compensation of rights’ holders andcreators from private copying as well as the development of licensed cloud-based
content streaming models. The goal should focus on reforming the system to be
more transparent, predictable, and balanced, and to avoid distortions. Also, a new
system shall be fair to consumers, rights holders, and service and equipment
providers at the same time. In order to achieve these goals, we recommend,•

Keep a close look at copyright levies developments in the Member States with aview to prevent internal market distortions.

•

Ensure that Member States properly implement the EU legislation and case law.

•

Come forward with a recommendation for a clear and common approach to thecalculation and application of copyright levies.

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WP-3 / # 09 * / EJ to EJ

R&D cooperation

The BRT calls on the EU and Japanese Authorities to:•Strengthen strategic R & D cooperation in Horizon Europe's digital programme andthe Sixth Science, Technology, and Innovation Basic Plan.

•

Lead the integration of various academic fields including humanities and social
sciences, the creation of a forum for collaboration including human resource
exchange, and international standardization. to realize innovation development andsocial implementations under these programs.

•

Promote the creation and development of start-up ecosystems, including local
communities, universities, and companies, and strengthen global partnerships increating environments for start-up growth.

•

Discuss Japan's position as an associate member in the Horizon Europe program.

The BRT believes that:•

Modern social systems are becoming more complex, and solving problems
requires knowledge that is not confined to a single discipline or research area. In
particular, collaboration between researchers in the natural sciences andengineering as well as those in the humanities and social sciences will lead to theresolution of social issues and the creation of new innovations.

•Start-ups are pioneers in transforming society through technological innovationand solving social issues. By strengthening cooperation between Japan and the
EU to support the creation and development of globally viable start-ups, it isexpected to accelerate innovation in both regions.

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WP-3 / # 10 / EJ to EJ

Cooperation Towards Harmonised Deployment ofAutomated Driving (In joint proposal with WP1Regulatory Cooperation)

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

Enhance cooperation to harmonize regulatory frameworks and roadmaps to deploy
automated and connected driving in a consistent and synchronized manner.

•

Continue to lead efforts to create international standards and interoperability
frameworks in the domain of automated and connected driving.

The BRT believes that:•

European and Japanese Industry have the potential to be front-runners in
automated and connected driving which can create jobs and growth and bringinnovation to our roads, increasing road safety and making our transport system
more accessible.

•

For European and Japanese companies to invest in automated and connected
driving and bring solutions to the market it is necessary to have stable legal
certainty and predictable market conditions which are aligned and synchronized.

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Aeronautics

WP-3/ # 11/ EJ to EJ

Government-Led Industrial Cooperation in
Aeronautics

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 broadcooperation on environmental issues, such as sustainable fuels.

WP-3 / #12 / EJ to EJ

Cooperation in Aircraft Certification

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

Accelerate the discussion of the annexes linked to MRO and training.

WP-3 / # 13/ EJ to EJ

Cooperation on Navigation Regulations for
Helicopters

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 in Spaceand should thus continue on a regular basis.

WP-3 / # 15 / EJ to EJ

Technological and industrial cooperation on Japaneseand 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 must be commercially competitive in orderto 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 in such
improvements, Japan-EU cooperation is indispensable in quick and cost-effective
developments.

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Mobility

WP-3/ # 16/ EJ to EJ

Battery wide range of production world regions

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

Enhance EU-Japan technical cooperation for sustainable batteries andinvestments in EU and Japan to preserve Japan & EU sovereignty in batteries and
EVs manufacturing

WP-3/ # 17/ EJ to EJ

Decarbonized electrification

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

Enhance cooperation on decarbonized electrification by gathering a wide range of
EU JAPAN industries from the automotive, aviation, energy, infrastructures sectors(charging infra/services, asset management, battery management services, H2,
supply of hardware, management of power…)

The BRT believes that:•

Electrification will continue to disrupt the short-range travel across of all sectors inmobility including for EVTOLs / UAM for commuter market. As the short to medium
range of the market becomes increasingly electric, the question of charging up
these vehicles begins to emerge as a key enabler for electrification.

WP-3/ # 18/ EJ to E

EJ industrial leadership in battery design &manufacturing

The BRT calls on the EU Authorities to:•

Include innovating SMEs in the battery industry development programs to foster
European & Japanese industrial leaderships (RE technology in Japan, RE
production capacity in Europe)

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Recommendations from
European Industries
Space

WP-3 / # 19 / 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 launchvehicle.

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