Recommendationsof theEU-Japan Business Round Table
to the Leaders of the European Union and Japan
Brussels, 28 April 2015
Working Party C
Innovation, Information & Communication Technologies(Final Version)

Working Party Leaders:Mr. Stéphane ISRAËL
Chairman & CEO
Arianespace

Mr. Chiaki ITO
Advisor
FUJITSU Ltd

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List of Abbreviations
Abbreviation
BASA
BRT
CATATS
DSM
EASA
EEN
ETP
EU
FLM
FP
GOJ
GPA
ICT
ITA
ITI
ITR
ITU
JCAB
JEITA
JEUPISTE
METI
MEXT
MIC
MoD
NATO
NCP
NICT
NIS
SESAR
SME
UN
R&D
WCIT
WSIS
WTO

Meaning
Bilateral Aviation Safety Agreement
Business Round Table
Collaborative Action for Renovation of
Air Transport Systems
Digital Single Market
European Aviation Safety Agency
Enterprise Europe Network
European Technology Platform
European Union
Forced Localization Measure
Framework Programme
Government of Japan
Agreement on Government
Procurement
Information and Communication
Technology
Information Technology Agreement
Information Technology Industry Council
International Telecommunication
Regulations
International Telecommunication Union
Japan Civil Aviation Bureau
Japan Electronics and Information
Technology Industries Association
Japan-EU Partnership in Innovation,
Science and Technology
Ministry of Economy, Trade andIndustry
Ministry of Education, Culture, Sports,
Science and Technology
Ministry of Information andCommunications
Ministry of Defence
North Atlantic Treaty Organization
National Contact Point
National Institute of Information andCommunications Technology
Network Information Security
Single European Sky ATM Research
Small and Medium Enterprises
United Nations
Research and Development
World Conference on International
Telecommunications
World Summit on the Information
Society

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VAT World Trade Organization
Valued Added Tax

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Introduction
The Government of Japan and the European Commission have been negotiating
towards a Free Trade Agreement and a Strategic Partnership Agreement for more than
two years. In April 2013 and in April 2014 the BRT has extended proposals tocooperate with negotiators and help to resolve technically complex issues. As wecannot see concrete improvement in our business and lack information on the statusof negotiations regarding our issues, we uphold most previous recommendations. In
order to make this document useful, however, we again highlight our priority issues,
mostly joint recommendations, i.e., from both the EU and Japanese sides. We alsomention new issues in each sector, where applicable, and reiterate our offer to help
resolve issues.
ICT
We uphold all previous years’ recommendations.
The BRT highly appreciates that the European Commission positioned the Digital
Single Market as one of the most important policy packages. In particular the BRT
supports the recent announcements from the European Commission published on 25thof March on an official press release. Topics as Data Flows, Data Protection,
Standards and Industry 4.0 are top priorities. The BRT is available to collaborate with
the European Commission to define the DSM Strategy. The BRT expects that the EU
regulations will be streamlined under the Digital Single Market Strategy to be releasedin May 2015. Global rules on ICT need regular updates to reflect latest technology
developments and business models. The EU and Japan should influence international
negotiations by taking harmonized actions based on our common principles regarding
internet governance, cybersecurity, privacy protection, data utilization, cross-borderdata flows and forced localization measures.
Innovation in General
We uphold all previous years’ recommendations.
The EU and Japan face similar societal challenges such as aging populations andclimate change. To address these complex global issues, governments should harness
the innovation capacity of the private sector through a better R&D businessenvironment. Funding Programmes such as Horizon 2020 should increase the efforts
towards open collaboration between the EU and Japan. Funding Programmes tofinance Innovation and collaboration are crucial.
Facilitating bilateral R&D collaboration with the participation of academia, public andprivate sectors will contribute to the creation of innovative products and services thatcan be deployed in both regions and also in the rest of the world.
Regulatory cooperation between the EU and Japan will also facilitate the deploymentof new services and products.

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Aeronautics
We uphold all previous years’ recommendations.
Europe's aeronautics industry is a major supplier to the world market, and Japan withits many advanced technologies may soon follow in its footsteps. Both, however, arechallenged by aggressive new entrants. In this context, joint technology and project
development are necessary for both sides to maintain their technological leadershipand competitiveness. EU-Japan industrial cooperation already exists in helicopters andaeroengines, but the potential is much higher. More government-led cooperation andcontinued support from both sides' Authorities are needed to help the European andJapanese aircraft industries bring to fruition the development of their relationship while
meeting the EU's environmental, social and safety requirements.
Space
We uphold all previous years’ recommendations.
The EU and the Japanese space industries are major suppliers of space products andservices. The space market, however, is small with limited growth prospects. As
government budgets remain low and competition increases, mutually open markets
and cooperation are necessary for the EU and Japan to achieve their goals in spaceand for their industries to realize their full potential in the global market. We are verysatisfied with the creation and first meeting of the EU-Japan Space Policy Dialogue,
and advise urgent and close regulatory cooperation in the area of space operations.
Defence Industries
We uphold all previous years’ recommendations.
Potentially momentous changes have been occurring in Japan’s defence equipment
sector. Cooperation between the Japanese and EU defence industries shows signs ofbudding as a result. Taking note of the fact that most of the progress being made is
between Japan and individual EU Member States, we urge a steady continuation ofthis fruitful bilateral process while also recommending discussions between Japan andboth the European Commission and the European Defence Agency.
Railways
We uphold all previous years’ recommendations.
Railways are among the high-technology sectors where both the EU and Japaneseindustries are world leaders and can together continue setting world standards in theface of new competition from emerging economies. This can have deep implications
for expanded cooperation in third-country markets. Safety is a particularly promisingcooperation area that we hope can be promoted by both sides’ Authorities. Working
towards harmonization and mutual recognition of standards would be a welcome
development.

One asterisk (*) identifies “priority” Recommendations, two asterisks (**) identify “toppriority” Recommendations.
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Recommendations from both
European and Japanese industries
WP-C / # 01** / EJ to EJ Cybersecurity of Critical Infrastructure
Trust, safety and robustness are key pillars expected of cyberspace and physicalinfrastructure supported by ICT. The BRT appreciates that both sides’ Authorities are
already working on joint initiatives on cybersecurity issues, and also encourages
further cooperation between the EU and Japan on safe and robust infrastructure basedon ICT.
Security of data and, preventing damaging leaks from public or private organizations
is a key growing issue, as more and more data go into clouds and are processed from
it. A common frame of best practices related to protection from and adequate response
to cyber-attacks should be established by both Authorities. Cooperation between
critical infrastructure operators and ICT service providers is a must in order to address
cyber threats. The BRT considers that security notification reporting should be applied
only to critical infrastructure operators and that such a requirement should not beapplied to enablers of internet services. The BRT requests that both sides' Authorities
enhance the quality and volume of human talent in the cybersecurity area.
Finally, due to the sometimes crucial role played by ICT in supporting anddeveloping key lifelines (energy, transportation, etc.), a robust ICT sector is especially
important. Considering the development and smartening of the infrastructures
including Electricity Grid Transmission, the BRT recommends the Authorities toencourage the private sector to construct resilient and safe ICT infrastructures in order
to both promote the development of new technologies and guarantee an adequatelevel of protection for critical infrastructures.
< Yearly Status Report >There has been good progress on this recommendation. In the joint statement of
the 22nd EU-Japan Summit held in May 2014, the EU and Japan shared theirrecognition of risks in cyberspace and agreed to launch a Cyberspace Dialogue. Basedon the agreement at the Summit, In October 2014, the 1st Meeting of the Japan-EU
Cyber Dialogue was held in Tokyo.
In November 2014, Japan adopted the Basic Law for Cybersecurity. Based on thisbasic law, a Cybersecurity Strategy Headquarters was established and is in theprocess of formulating a new Cybersecurity Strategy.
In March 2014, the European Parliament voted to give mandate to negotiate with
the Council on the NIS Directive. Several informal trilogues are conducted among theEuropean Commission, the European Parliament and the EU Council.
< Background >Risks surrounding Cyberspace are increasing. Cyber-attacks against criticalinfrastructure are serious threats to society. The operations of critical infrastructuresuch as energy, transportation, water, etc., are highly dependent on ICT. It means that
defending critical infrastructure from cyber threat is indispensable for maintaining thebusiness operations and a stable civil society. Addressing these serious issues
requires a close international cooperation of the public and private sectors.
WP-C / # 02** / EJ to EJ Balancing Privacy Protection and Innovation
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The responsible collection and use of personal data is important not only for the ICT
industry but also for the entire society. The BRT requests both sides’ Authorities to set
clear rules for the use of each category of data, thus enabling data transfers andcreating an environment that facilitates the utilisation of “big data” in a responsible waythat also protects privacy. The BRT also requests both sides’ Authorities to adopt laws
and regulations on data protection which are compatible with each other, so that there
is no gap in data protection and enterprises can conduct business without concern
about different data protection regimes. The BRT welcomes Japan’s decision to revise
its personal data protection regime.
The BRT also welcomes that the European Commission prioritized the Digital Single
Market as its policy agenda and positioned the single data protection rule as importantpillar for Digital Single Market in the EU.
The BRT recommends that Japan’s new law consolidate the currently fragmented
authorities over personal data protection to one independent data protection authority
and ensure transparency and foreseeability for both domestic and foreign-based
companies.
The BRT also strongly recommends the authorities of Japan make sure that theamended law will satisfy the adequacy-finding procedure under the EU system.
The BRT suggests that a reasonable and equitable ‘safe harbour’ agreement
between the EU and Japan or an adequacy-finding procedure under the EU system
be explored after or during the completion of the reforms of the two regimes.
Concerning the draft EU General Data Protection Regulation, the BRT thinks thatthe authorities of the EU should balance privacy protection and innovation, andrecommends an active use of recognised certification schemes in international datatransfers, a clearer definition of extraterritorial applicability, a flexible notification period
in case of a breach, simplified rules for the cross border transfer of employee data
within multinational companies, and the maximum fines to be proportionate andequitable. The BRT expects the adoption of EU General Data Protection Regulationby the end of 2015 to the extent possible.
Furthermore, both sides' Authorities should launch a dialogue to seek aninternational framework by enhancing cooperation with third countries and internationalorganisations. It should eventually lead to the closer alignment of data protection
regimes around the world that would enable global businesses to transfer personal
data by complying with one regime.
< Yearly Status Report >There has been good progress on this recommendation. The draft EU Regulation isin the process of deliberations and might be adopted by the end of 2015.
A revision of Japan’s personal data protection law is under discussion at the Diet.
The draft law includes the establishment of an independent authority responsible for
personal data protection.
< Background>
The European Parliament voted in its plenary session in March 2014 and adopted
the amendments proposed by the committee on Civil Liberties, Justice and Home
Affairs (LIBE), the committee responsible for the proposal. The amendments by the EP
keep harsh conditions on business entities such as potential fines up to 5% of anenterprise’s annual worldwide turnover or 100 million Euros (whichever is greater) fordata breach or complicated requirements on consent and erasure, although it
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introduces a definition of pseudonymous data and the certification program that would
be favourable for business enterprises considering the use of personal data.
Paving the way for a more comprehensive agreement in 2015 at a Council level,agreements on key aspects of a data protection were reached in June, October andDecember 2014 and in March 2015 by the Justice Ministers of the Member States(rules in case of non-EU entities involvement, rules of territoriality, rules on processing
data, and partial rules for the public sector).
WP-C / # 03** / EJ to EJ Cooperation to Maintain an Open and Transparent
Internet (Internet Governance)
The BRT supports the past coordinated efforts on Internet Governance by bothsides’ Authorities and expresses its utmost gratitude to the Leaders and Authoritiesof the EU and Japan for the leadership and efforts they have shown in relation to thisissue. 2015 is an important year as the UN General Assembly will review the WSIS
activities therefore we request both sides’ Authorities to continue cooperating in orderto maintain an open and transparent online environment involving multi-stakeholders.
< Yearly Status Report >In February 2014, The European Commission released its communication “Internet
Policy and Governance” on the EU's role in shaping the future of Internet Governance.
In March 2015, DG CONNECT and the Ministry of Internal Affairs andCommunication (MIC) held 21st EU-Japan ICT Policy Dialogue and discussed Internet
Governance among others.
< Background >Internet has become an indispensable social infrastructure to sustain citizens’ life,
innovation, and economic growth. The BRT acknowledges that several innovative
services using internet have emerged under the multi-stakeholders / international
governance mechanism. At WCIT 2012, revisions of ITRs were discussed by ITU
member states. Different positions on governance among countries became obvious,and international governance remains a key topic in current discussions.
Several top level international meetings on Internet governance have been held in2014 (Global Multistakeholder Meeting on the Future of Internet Governance in April
in Brazil and the ITU Plenipotentiary Conference in October in the Republic of Korea) ,advocating for a global Digital governance and some more are planned for 2015
(including the General Assembly’s special high-level meeting in December). Reflecting
a global trend regarding global governance, it is to be noted that ICANN should
transition to international governance in September 2015.

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WP-C / # 04** / EJ to EJ Concerns on Emerging FLMs and Market Access
Improvement in Third Countries
The BRT has serious concerns that some countries are implementing Forced
Localization Measures (FLMs). Both sides' Authorities are requested to takecoordinated actions against FLMs such as compulsory requirements of local facilities
and subsidiaries for services provisioning, forced local technology transfers and local
testing requirement etc., when those measures are not necessary, are unfair, or
obviously interfere with the rightful and un-hindered provisioning of services to theusers. These kinds of FLMs have a potential to be a real threat to free global trade.
Maintain the business environment to realize “Cross Border Data Flow” is imperative
for multinational companies and citizens who consume several services offered by
global players.
The BRT also requests that both sides' Authorities intensively work on an ambitious
and comprehensive trade liberalization policy of services over the internet with the
purpose of facilitating cross-border business and data flows, including a clear standard
for taxation of cross-border digital contents. This will help actors on all layers(infrastructure providers, operators and service providers) to thrive in synergy for theoverall benefit of the final users. The BRT highly appreciates that at 18th EU-Japan
Industrial Policy Dialogue, DG GROW and Ministry of Economy, Trade and Industry(METI) agreed to deepen the cooperation in Forced Localization Measures in ICT andpersonal data protection etc.
< Yearly Status Report >At the 22nd EU-Japan summit held in May 2014 in Brussels. The EU and Japanemphasised the importance of enhancing cooperation in the current negotiations ofTrade in Services Agreement. The BRT notes that the rules of application of VAT todigital contents sold in Japan from abroad have been clarified by the MOF in June
2014. A clarification of such rules as well as their mutual fairness is needed for the
expansion of digital trade between Japan and the EU.
In October 2014, ICT industry representatives and governments from Europe, Japanand the United States held a trilateral meeting to discuss the challenge of forced
localization measures. The meeting was organized by DIGITALEUROPE and theJapan Electronics and Information Technology Industries Association (JEITA), and theInformation Technology Industry Council (ITI). They shared efforts to prevent andtackle this issue and agreed to enhance coordination by enhancing policy
communication, dialogue, and joint action. Particularly, recognizing serious impacts
on the growth of global economy, DIGITALEUROPE, JEITA, and ITI adopted “TheTokyo Resolution on Combatting Data Localization Requirements” to combat data
localization requirements.
In March 2015, DG GROW and METI adopted a Joint Document on Regulatory
Cooperation between the EU and Japan.
< Background >The ITA facilitated the global trade of IT products and contributed substantially to
the global economy. In the ICT sector, services are an important component ofbusiness in addition to products. Global rules on digital services need modernizationreflecting technology development and emerging business models.

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WP-C / # 05* / EJ to EJ Continued Efforts for Conclusion of ITA Expansion
The BRT requests that both sides’ Authorities set a near-term deadline for WTO
talks and try to bring the current negotiations to expand the ITA to a successful
conclusion. To enjoy the outcome of ITA expansion, we urge zero or shorter staging
periods for the majority of negotiated products.
The BRT also requests that, in the expanded ITA, compulsory and periodical review
mechanisms be built in order to ensure that the ITA will always be kept up-to-date andreflect technological developments.
< Yearly Status Report >Negotiators of ITA expansion participated in the WTO meeting in December 2014
to conclude the negotiation. But unfortunately, they could not finalize the negotiation.
WTO Director General Roberto Azevêdo urged members to remain actively andconstructively engaged to bridge the gaps in the negotiations.
< Background >An ITA expansion would boost trade, remove uncertainties relating to productclassification, and ensure technological developments across all economic sectors andpublic services. Both Japan and Europe will benefit from the development of a majorindustrial sector that is a driver, in virtually all other sectors and in public services, of
productivity, innovation, job creation, improved competitiveness, and service quality.
Unlike the current ITA, which has not been updated since 1996, a built-in periodical
review mechanism will enable additional categories of ICT goods to be traded duty free
and will minimize the risk of current and future innovative technological developments
giving rise to product classification uncertainties.
WP-C / # 06 / EJ to EJ Fundamental Reform of the Private Copying Levy System(Compensation System for Private Copying)
The EU and Japan should cooperate to reform fundamentally the private copying
levy system taking into account the evolution of technology and distribution channels
for lawful digital contents.
Any review for reform should consider, in a comprehensive manner, alternative
methods – including new content distribution practices – available to securecompensation for rights’ holders and creators from private copying as well as thedevelopment of licensed cloud-based content streaming models. Increasing theavailability of lawful digital content will require a reform of the existing copyright regime
in the EU as well as in Japan. The aim of the reform should be to promote open andcompetitive markets in licensed digital content, with the aim to increase availability ofmore legitimate digital content, at prices which appeal to consumers and hereby
promote innovation and growth of digital creative market. The goal should be to enable
the establishment of a system which is transparent and fair to consumers, rights
holders, service and equipment providers, etc.

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Current compensation is based on private copying levies and sometimes dates backto the analogue era. Private copying levy regulations do not address piracy. New
emerging and expanding business models may be hindered by current levy system.
Furthermore the rules vary greatly across Europe and this is in contradiction with theInternal Market principles of the free movement of goods and services.
Innovation in General
WP-C / # 07* / EJ to EJ Work towards International Standardisation at Joint
R&D Programmes
Both sides’ Authorities should specifically favour joint R&D programmes that are
geared towards international standardisation such as standardisation in advanced
manufacturing and in the Internet of Things. Regulatory cooperation for emerging
technologies between the EU and Japan will facilitate the deployment of new services
and products in both regions.
< Yearly Status Report >In March 2015, DG GROW and METI held the 18th Annual Meeting of the EU
Japan Industrial Policy Dialogue in Brussels and adopted a joint document
regarding the regulatory cooperation between the EU and Japan.
< Background >The EU and Japan share common societal challenges such as aging population,
climate change, resources constraints, etc. Enhancing cooperation between EU andJapan expertise will increase possibilities to create new products and services
addressing complex issues. However, a real breakthrough is possible if both
economies and Authorities use the same standards, so that double certification will not
be needed. As this is more difficult to achieve for incumbent technologies and markets,at least new standards should be developed jointly as much as possible. It is wellknown that the seeds for standards are already defined at the R&D level, thus joint
R&D programs should encourage joint standardisation activities.
WP-C / # 08* / EJ to EJ Sharing Vision and Roadmaps for a Better Coordinationof R&D Projects/Programmes
To make the programmes even more effective to manage and accessible from theindustry, the procedure for preparation and launch of coordinated calls should be welldiscussed by both parties and standardised. Especially, transparency should beenhanced throughout the application and evaluation processes. Clearly mentioning
correspondences between European and Japanese calls would greatly facilitate theidentification of opportunities for cooperation. If possible, synchronized publication ofsuch calls would be desirable. Both sides’ Authorities should increase matchmaking
activities between EU and Japanese industry to find out common themes. For sharing
the vision and working on the common roadmaps, the industry-led activities ofEuropean Technology Platforms (ETPs) can be a model.
To increase participation in the respective R&D projects of each region, the BRT
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National Contact Point in Japan for Horizon 2020 and other relevant instruments(including EEN) to widely circulate R&D call notifications and support the formation ofpartnerships. The BRT hopes that initiatives under Horizon 2020 and the forthcoming
5th Science and Technology Basic Plan in Japan will lead to further EU-Japan strategic
R&D cooperation.
The BRT welcomes the successful outcome of the EU-Japan ICT Policy Dialogue
held in March, 2015 between MIC and DG CONNECT. It confirmed the importance ofpolicy coordination and R&D cooperation in the ICT field to promote growth andcompetitiveness. In particular, the BRT welcomes their announcement of theforthcoming signature of the EU-Japan 5G (5th Generation mobile communication
systems) Ministerial Joint Declaration.
< Yearly Status Report >A few joint calls for proposals under Horizon 2020 were released in the fields ofaeronautics and ICT.
In October 2014, the European Commission, Japan’s MIC and NICT held the 5th
EU-Japan Symposium in ICT Research and Innovation in Brussels to discuss updates
on Joint R&D ICT projects between the EU and Japan.
In March 2015, a Horizon 2020 project, SUNJET II organized in Tokyo the “EuropeJapan Symposium Electrical Technologies for the Aviation of the Future”.
To further enhance EU-Japan cooperation in research and innovation, a new projectcalled JEUPISTE was launched in Sep. 2013 under FP7. Since its nomination as NCP
of Japan, the EU-Japan Centre for Industrial Cooperation conducted several activities
to facilitate R&D collaboration between the EU and Japan (translation of key Horizon
2020 contractual documents, organization of seminars on ICT (December 2014) and
Renewable Energy (February 2015), organization of seminars/workshops incooperation with local hosts (grass-root approach, tailored to specific needs),
establishing the Horizon 2020 portal site for Japan and networking and exchanging
information with other NCPs.
The Government of Japan is developing its 5th Science and Technology Basic Plan.
< Background >Science, Technology and Innovation are engines for growth. Ideas cannot be
prevented from crossing borders. Consolidating expertise from both regions will be aneffective way to address current complex global issues. Countries can make more
effective use of human resources and financial funds if their R&D programmes arecoordinated and if mutual access to R&D programmes is easier for participants fromboth regions. Coordination should also be promoted at local/regional levels (e.g. Smart
Specialisation). A similar coordination should be promoted by coordinating the work of
Chambers of Commerce, Industrial Associations and Universities.

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WP-C / # 09* / EJ to EJ Tax credits and other incentives for R&D
The BRT recommends further enhancement of tax credits for R&D, public-private
cooperation in the procurement of R&D results, etc., in particular for SMEs. The
authorities should not change the laws and rules too often, otherwise companies will
be reluctant to plan long-term R&D.
< Yearly Status Report >The Government of Japan (GOJ) extended and expanded special treatment of R&D
tax credit in the FY2014 Tax Reform.
< Background >R&D presents in itself a high risk for companies. Authorities should help to reducethe cost of such risks and apart from subsidies, tax credits present another effective
solution. Particularly SMEs, with limited access to funding, will benefit from tax credits
as the simplest and least bureaucratic form of R&D subsidy. Tax credits should take
into account the long-term nature of R&D, which requires long-term planning of funds
and expense management. Tax credits should therefore be established for a prolonged
period, so that companies can plan their R&D expenditures effectively.
Aeronautics
WP-C/ # 10** / EJ to EJ Government-Led Industrial Cooperation in Aeronautics
The Authorities of Japan and the EU should establish a permanent dialogue aiming
to significantly upgrade the scale of EU-Japan industrial cooperation in aeronautics
based upon mutual trust, equality and mutual benefits, and stimulated by government
funding. This should include a broad cooperation on environmental issues.
<Yearly Status Report>
Some progress has been made on this recommendation.
<Background>
Europe's aeronautics industry has long been a major supplier to the world market.
Japan also has many advanced technologies. Both are challenged by new entrants. In
this context, joint technology and project development are necessary for both sides'
companies to maintain technological leadership and competitiveness, and forgovernments faced with severe budgetary constraints. Some Europe-Japan industrial
cooperation exists in helicopters and aeroengines but the potential is much greater.
EU-Japan industrial cooperation in civil airliners has stagnated since the early 2000s,
when 15 Japanese suppliers joined the A380 programme. The situation is better forJapanese participation in engine programmes and as suppliers of carbon fibre
materials. The aerospace industries of other countries have improved significantly inrecent years and price competitiveness has become a key decision criterion.
Europe and Japan support mostly separate research programmes on environmental
issues, from noise to emissions. We believe that the eco-technology at all aircraft
speeds is one of the fields where further cooperation between Europe and Japan could
yield significant cooperation and business opportunities.
WP-C / # 11* / EJ to EJ Cooperation in aircraft certification
Cooperation between Japanese and European aircraft certification authorities
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should be upgraded. Specifically, the BRT recommends the signature of a Bilateral
Aviation Safety Agreement (BASA) between the JCAB and the EASA that would coverboth type certification and maintenance activities.
< Recent Progress >Significant progress is made towards a BASA between Japan and the EU.
< Background >There is a bilateral agreement between US and Japanese civil aviation authorities
that facilitates the mutual acceptance of the other party’s certification basis, while there
is only a working arrangement between Europe (EASA) and Japan (JCAB) that proves
extremely difficult to work with. Validation by JCAB of European Type certified aircraft
is a very lengthy process. In particular, validation of EASA-certified new optional
equipment for helicopters whose Type Certificates are already validated by JCAB
should be almost automatic, but instead the Japanese authority requires a review of
all the technical documentation before approval. This is often the cause of delivery
delays of the products to Japan and may at times preclude European manufacturers
from fairly competing in public tenders, due to stringent delivery requirements.
Moreover, Japan is probably the only country in the world where the Rotorcraft Flight
Manuals must be translated into the local language and approved by the local authority,
again representing an obstacle to helicopter imports.
WP-C / # 12 / EJ to EJ Cooperation on Navigation Regulations for Helicopters
Establish an increased level and better cooperation between Europe and Japan on
the development of low altitude IFR routes and satellite based navigation regulations
for helicopters.
<Yearly Status Report>
Progress is seen on this recommendation. Europe’s SESAR air traffic management
systems programme and Japan’s CARATS committee on future air traffic systems
established a framework for technical cooperation.
< Background >The US, Europe and Japan are working on developing their own regulations andinfrastructure without an adequate level of exchange of information andstandardisation. European and Japanese territories have more similarities than eachhas with the US, so that Europe and Japan should work more closely and with a sharedapproach. Many European helicopters are already equipped with the hardware tointerface with ground based / satellite based infrastructure already established to allow
low altitude IFR routes, Point-in-Space navigation and GPS precision approaches, butthat may prove useless if there is no cross recognition of standards and regulations(software) between the countries.
Moving forward for bilateral agreement between EASA and JCAB is also expected by
the aviation industries.
Space
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WP-C / # 13 / EJ to EJ Regulatory Cooperation in Space Operations
Japanese and EU Authorities should use their new EU-Japan Space Policy
Dialogue to discuss regulatory cooperation in space operations.
< Yearly Status Report >This is a new recommendation.
< Background >We welcome the first meeting of the newly created EU-Japan Space Policy Dialogue
on 7 October 2014. It covered many areas of mutual interest.
The Government of Japan, on the other hand, is preparing legislation to regulate Space
operations by Japanese entities. Similar legislation already exists in the EU, mainly
including some EU Member States. Healthy EU-Japan trade and cooperation in space
services calls for common legislative and regulatory ground that could be examinedwithin the EU-Japan Space Policy Dialogue.
Moreover, during the first EU-Japan Space Forum on 8 October 2014, Japan and
EU Space Industry participants have outlined the need for industrial cooperation inboth Civil and Defence thematics that will lead to many technological, budgetary andindustrial advantages. Such cooperation will also be studied under this current
dialogue in fields like Communication and Earth Observation services.
WP-C / # 14 / EJ to EJ Mutual Backup of Government Satellite Launches
Japanese and EU Authorities should bring about a mutual backup cooperation
scheme of government launches using Japanese and European launcher fleets.
< Yearly Status Report >No progress has been seen on this recommendation.
< Background >Europe's launcher Ariane 5 and Japan’s H-IIA are in an arrangement to back upeach other's commercial satellite launches. This reduces the risk of long launch delays
due to launcher technical problems. Years of discussions between the MEXT and theEuropean Space Agency towards a similar back-up arrangement for government
launch missions have not produced results.

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Defence
WPC # 15 / EJ to EJ EU-Japan Cooperation in Defence Equipment
Potentially momentous changes have been occurring in Japan’s defence equipment
sector. Cooperation between the Japanese and EU defence industries shows signs ofbudding as a result. Taking note of the fact that most of the progress being made is
between Japan and individual EU Member States, we urge a steady continuation ofthis fruitful bilateral process while also recommending discussions between Japan andboth the European Commission and the European Defence Agency.
< Yearly Status Report >This is a new recommendation.
Railways
WP-C / # 16 / EJ to EJ Railway Market Access
Both authorities should establish an open description of compliance requirements
as well as current validation processes. The certification procedures relevant for the
railways should be made fully transparent to both parties. They should mutually informof their evolutions.
For that purpose, both sides' authorities should continue their efforts to ensure that
their commitments, such as on procurement transparency and non-discrimination as
well as defining the operational safety clause that were agreed in 2014, are fully
implemented to result in much more significant improvements in actual market accessconditions.
In addition, the European Railway Agency and the Japanese Ministry of Land,
Infrastructure, Transport and Tourism could establish a dedicated working group inorder to better capture the certification procedures in both sides' networks.
< Yearly Status Report >Significant progress has been achieved in addressing this topic: the players in therailway sector of the both sides have made efforts to understand the difference
between the two systems for the past few years in parallel with negotiations on
FTA/EPA especially through the Railway Industrial Dialogue launched in March 2014.
Although it still needs to be improved, their mutual understanding has improved.
The European Commission and the Japanese Ministry of Land, Infrastructure,
Transport and Tourism agreed on matters such as procurement transparency anddefining the scope of the safety requirement clause.
The EU finally lifted its objection on the withdrawal of the three JR companies fromJapan’s GPA Annex III to the WTO Secretariat and these companies simultaneously
published their voluntary codes of conduct regarding material procurement.
JR East (East Japan Railway Company), one of the three JR companies, hasalready opened its procurement of safety signalling systems to European companies
and recently announced new international tender for the procurement of 18 diesel cars.
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(1) The EU and the Japanese railways both respectively have long and successful
experience in the railway safety domain.
(2) The legal requirements, management systems and business practices ofrailways in the EU and Japan are not similar to each other. Notably, theresponsibility for the safety and reliability of equipment and systems falls on
different players: while, in the EU, manufacturers are mainly responsible forobtaining safety certification, in Japan, railways operators are responsible forobtaining safety certification.
(3) Safety certifications drive many railways equipment and systems procurement
requirements.
(4) In order to address the difference in safety certification, opening a dialogue
between both sides' industry players, especially between the manufacturers of
the two sides, could be an appropriate way. It would foster the cross-fertilisationof safety performance of the global railways industry.
(5) On 27 March 2014, the first dialogue of the railways that involved nearly all theplayers in the EU and Japan in the sector was organised in Brussels under thesponsorship of the European Commission and the Japanese government. On 4
December 2014, the second dialogue was held in Tokyo.
(6) The BRT supports this initiative. Such an industrial-sector dialogue to enhancemutual understanding is useful and should be held regularly.
(7) During the past few years, a significant effort has been undertaken in the EU inorder to get better visibility on the certification in EU Member States. These
relate to specific requirements for safe operation of relevant railway networks.
The European Railway Agency is taking care of the certification coordination
among EU Member States' National Safety Authorities. In its so-called “Fourth
Railway Package” proposal, the European Commission is paving the way for acommon certification procedure to be granted by the European Railway Agency.
(8) The BRT hopes by taking the above progress into consideration, that win-win
solutions will be found through such a dialogue that will help the developmentof both the EU and Japanese railways industries in and outside the two regions.

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Recommendations from
European industry
Aeronautics
WP-C / # 17** / E to EJ Weight Restrictions on Haneda Airport D Runway
Haneda D runway weight restrictions are an obstacle to the use of European-madeaeroplanes and an obstacle to further development of international traffic at Haneda.
These weight restrictions should be re-examined to allow the operations of new andlarger airplanes such as Airbus-made A380 and A350. We request both sides’
Authorities in charge to cooperate in making the necessary verifications. Additionally,
for the newest mid-size A350 aircraft, operation could be possible with the reverification of the withstand load with regards to part of the construction.
< Yearly Status Report >No progress has been seen on this recommendation. However, the recent approvalof the 747-8i (Code F aircraft) for day-time operations in Haneda offers hope that theA380 (also a Code F aircraft) will be approved soon for day-time operation as there
are some airlines looking at operating the A380 into Haneda.
< Background >With the purpose of expanding airport capacity in response to the increase in air
travel demand as well as to reduce congestion, a fourth runway (D runway) and aninternational terminal were opened in Haneda in October 2010. So far focusing on
flights to and from Asian countries, its use for long-haul international routes will
increase in the future. The number of flights will grow together with the demand but will
be limited in the end by the capacity in terms of slots. This will prevent Japan fromrealising its objective to grow the number of visitors from 13 million per annum today
to 20 million by 2020, when the Tokyo Olympics will take place. The average size ofaircraft departing Haneda (230 seats) is now lower than it was in 1980 (240 seats)
when 747s were used domestically. To see traffic grow at Tokyo’s airports and more
specifically Haneda, work needs to be done to ensure larger aircraft can be used atHaneda. In this regard, the use of new and larger aircraft will be an important part of
the airlines’ strategies. Under such circumstances, aircraft weight restrictions on the
D runway could impede the conversion of Haneda Airport to larger and newer aircraft.
In order to avoid disturbing the flow of the Tama River, the D runway was overhauledusing a pier-like structure instead of a conventional landfill. Due to this, weight
restrictions have been placed upon the aircraft in use, and with the entire line-up of
Airbus’ newest A380 and A350 series exceeding the weight limit, these aircraft could
no longer be used as they currently are (cf. chart below).
Unit: tons
Total weight
Main gear load,t/gearWheel load

Weight
limit

A380

400
139.5

571
161.6

A3501000
308.9
146.9

26.2

26.9

24.5

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A350900
268.9
126.0

B747400
396.0
92.8

B777200ER
286.9
134.9

31.5

23.2

22.5

SpaceWP-C / # 18* / E to J Approval of Satellite Launch Service Providers
The approval by Japanese Authorities of foreign launch service providers throughthe envisioned approval system of Japanese commercial satellite launch projects
should be fair and consistent with commercial world practice as recognised andformalised by the French Space Operations Act of June 2008 and associated by-laws.
< Yearly Status Report >We have no new information.
< Background >Japanese Authorities contemplate Space Operations legislation that would require
Japanese users of satellite launch services to obtain an official approval before they
contract for launch, and that would also require them to only use reliable launch service
providers approved by Japanese Authorities. We have no issue with such legislation
if it cannot be used to make competition in Japan difficult for EU launch service
providers.

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Defence
WP-C / # 19 / E to EJ Internationally Recognized Procurement Processes for
Defence Equipment and Services
The following should be applied to all defence procurement processes:(1) Japan should improve transparency towards foreign suppliers by making theStatement of Requirements for procurement processes more widely available.
(2) Japan’s MoD should adopt NATO standards for the initial research anddevelopment phase to strengthen competition and reduce development risk.
(3) Japan’s MoD should also implement multiyear contract scheme for weapon
acquisition in order to obtain the best conditions in terms of prices and local
content from foreign manufacturers.
(4) Greater emphasis should be placed to date on Life Cycle Costs by Japan in its
defence procurement. Budgeting based on life cycle costs allows governments
to better plan their defence expenditure. It also creates fairer competition
between bidders for contracts as it demands fuller disclosure of cost
information.
(5) Unlimited liability should be removed from the terms and conditions of publictenders, as this puts foreign bidders at a considerable disadvantage in relation
to local contenders.
(6) If a foreign company is selected, then the Japan MOD should separately selectthe local industrial partner based on a licenced production and modification
package made available by the selected foreign company.
(7) The MoD should also send a clear message to suppliers that if they do notcontract on the basis of their selection there will serious consequences orcancellation of the selection.
(8) The BRT would also encourage MoD to create an appeal process.
< Yearly Status Progress >The Japanese MoD has made a move to improve the transparency of its decision
making process by declaring a point system to determine the winner and providing adebrief as to how the decision was made. However the point system is not that clear
and debriefs need to be more detailed.
<Background>
Certain reforms have already taken place in defence procurement processes.
Further reforms would strengthen transparency and competition.

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