Recommendationsof theEU-Japan Business Round Table
to the Leaders of the European Union and JapanTokyo, 20 April 2018
Working Party 3
Digital Innovation and Mobility

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

Mr. Nobuhiko SASAKI
Corporate Executive
Vice Chairman
Fujitsu Limited

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List of Abbreviations
Abbreviation
AI
AIOTI
API
BASA
BRT
CARATS
DEI
DSM
EASA
ENISA
EPA
ePR
EU
FTA
HPC
IoT
ITA
ITAC
FLM
GDPR
GPS
JCAB
METI
MEXT
MOU
M2M
NIS
SESAR
SME
R&D
WP

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Meaning
Artificial Intelligence
Alliance for IoT Innovation
Application Programming Interface
Bilateral Aviation Safety Agreement
EU-Japan Business Round Table
Collaborative Action for Renovation of
Air Transport Systems
Digitising Europe Industry
Digital Single Market
European Aviation Safety Agency
European Union Agency for Network
and Information Security
Economic Partnership Agreement
ePrivacy Regulations
European Union
Free Trade Agreement
High Performance Computing
Internet of Things
Information Technology Agreement
the IoT Acceleration Consortium
Forced Localization Measures
General Data Protection Rules
Global Positioning System
Japan Civil Aviation Bureau
Ministry of Economy, Trade and Industry
Ministry of Education, Culture, Sports,
Science and Technology
Memorandum of Understanding
Machine to Machine
Network Information Security
Single European Sky ATM Research
Small and Medium-sized Enterprise
Research and Development
Working Party

Introduction
Digital Sector
Digital technologies represented by IoT, Big Data, AI, Blockchain and Robotics arechanging business and society. These digital technologies are expected tocontribute to the accomplishment of the SDGs. The EU and Japan have positioned
the digital agenda as a pillar of their respective growth strategies while reviewing
and implementing appropriate regulations to foster digitalization. New initiatives,
such Industry 4.0 in Europe and Society 5.0 in Japan, are re-thinking the way
modern societies will manufacture and create new economic value. This willstrongly impact civil societies and social policies with significant impact on the Jobs
Market. This needs to be supported by efficient political initiatives from
Governments.
Significant progress has been made at both sides, but to embrace the power ofdigital technology, both authorities are required to work more closely at several
international arenas. The BRT thinks that all digital related policies should take into
consideration globalization and inclusive growth. Broad participation on policy
discussion will facilitate social acceptance of digital transformation.
In addition to sharing a common recognition of the digital technologies on society,on jobs and the economy, the EU and Japan should specify the areas forcooperation and endeavour to create concrete projects.
The EU and Japan should lead the discussion of the development of the global
digital society. This should include global digital rule making by taking coordinatedactions based on common principles to fully exploit the potential of socialtransformation by digital technology at several international fora. The EU and Japan
share the same principle that the multi-stakeholder approach is highly effective inrealizing the global digital economy. Following the roadmap prepared during thelast G7 meeting in Taormina (Italy)“ people centered action plan on innovation,
skills and labour”, the EU and Japan should adopt concrete actions andinvestments in particular on the creation of adequate skills to fill the gap with theactual demand from labour market and to better involve developing countries.
The BRT also welcomes the new initiative of the European Commission, “Digitising
European Industry” (DEI), and Japan’s Connected Industries. The European
Commission and the Government of Japan are encouraged to foster key
collaborations.
Albeit still in its infancies, Blockchain and derived technologies have the potential tocreate major disruptions. It is of utmost importance that regulators are closely
following the developments and define rules already now on the major issues bytaking into account the principle of technology neutrality and finding the rightbalance between regulation and self-regulation of the industry.
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
harness the innovation capacity of the private sector by fostering a better R&D
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business environment. Given the critical roles of digital technology, such as IoT, insupporting other sectors, the BRT urges both sides’ authorities to mobilize allnecessary tools for the development and deployment of innovative solutions andproducts.
Funding programmes such as Horizon 2020 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 and collaboration is crucial. Supporting
the participation of both SMEs and (big) Industry 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 such as the EUJapan Horizon 2020 Calls that should be present in the new Work Program 20182020 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.
Aeronautics
Europe's aeronautics industry is a major supplier to the world market, and Japan
with its many advanced technologies may soon follow in its footsteps. 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 sides'
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
The EU and the Japanese space industries are major suppliers of space products
and services. The global commercially accessible 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 andJapan to achieve their goals in space and for their industries to realize their fullpotential in the global market. We are certainly satisfied with the creation and first two
meetings of the EU-Japan Space Policy Dialogue, which were fruitful and enabled
the two bills enacted to be coherent with the EU legal framework towards space. We
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also appreciate that the outcome of discussions held in Japan regarding the Approvalof Satellite Launch Service Providers was finally fair.

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Recommendations from both
European and Japanese industries
WP-3 / # 01* / EJ to EJ

Cooperation for Global Digital Trade Rule Making

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 and society. The EU andJapan should commit to free, open and fair trade in cyberspace and ensure fairmarket access.
The BRT has serious concerns that some countries are implementing Forced
Localization Measures (FLMs). Maintaining the business environment to realize
adequate “cross-border data flows” is imperative for both large and small businessesof all sectors and for citizens who consume services. The BRT thinks that the
principles of free flow of data and the restriction of a mandatory requirement of data
localization will be one of the foundations of the digital economy.
Under these circumstances, the BRT highly welcomes the agreement of EU-Japan
EPA which includes provision of restriction of source code disclosure andcooperation on regulatory issues of e-commerce.
The BRT expects that text on free flow of data will be agreed at next review expected
within three years of the entry into force of the EPA.
The BRT requests both sides’ Authorities to lead global rule making with coordinatedapproach at several international fora such G7, G20, OECD, and WTO. The EU andJapan should promote initiative for future rule-making on e-commerce building upon
the joint statement issued at MC11. The BRT also requests to incorporate provisions
to restrict digital protectionism such as FLMs, ensuring free access to internet,
improvement of market access, prohibiting arbitrary access by governments to
information held by private sector including personal data and trade secrets into
FTA/EPA negotiations respective parties are engaged in and jointly approach theabolishment of such regulations.
The BRT welcomes the efforts to increase membership countries for ITA/ITA
Expansion. The BRT expects both governments to coordinate together against third
countries violation of WTO binding commitments based on ITA/ITA Expansion.
< Recent Progress >On 7 December 2017, both authorities agreed on the EU-Japan EPA, which
includes e-commerce chapter.
At the Eleventh WTO Ministerial Conference (MC11) held in December 2017 in
Buenos Aires, Argentina, Japan played chair of e-commerce meeting together with
Australia and Singapore. Total 71 WTO members including the EU agreed to work
together toward future negotiations on electronic commerce.

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At the G7 Summit in Taormina, Italy on 27 May 2017, important progress has been
made to avoid protectionist measures. During the high level meeting, a generic but
important declaration was decided to prevent negative consequences on digital trade.
< Background >Thanks to the digital economy, today’s business environment is evolving at
exceptional speed. Information, goods, and services are more global than everbefore. In the trade environment, digital trade - intended as for example cross-borderdata flows and e-commerce - is growing exponentially around the world. It is
important to emphasize though that digital trade does not only positively impact thedigital technology sector, but also has a positive spin-off effect on the entire value
chain and across all industries and players, including consumers and employees.
Digital trade has a positive effect on the quality of goods and services andproductivity levels thanks to new technologies, processes, business models, andservices. Thus digital trade has great potential to bring new growth and prosperity toEurope and Japan. However, the true potential of digital trade to drive innovation, job
creation, and economic growth has yet to be fully realized. Indeed, barriers persist,and protectionist trends and policies are on the rise.
Several countries are trying to implement digital protectionist policies. To spreadthe fruit of digital technology all over the world, modernized and harmonized rules areindispensable so that business can offer innovative solutions without unnecessary
burdens to meet specific local requirements.

WP-3 / # 02* / EJ to EJ
EconomyPrivacy Protection and Innovation towards Digital

The BRT believes that establishment of personal data transfer mechanism between
the EU and Japan will enhance the EU-Japan economic relation complementing the
EU-Japan EPA.
The BRT highly welcomes constructive dialogues conducted by both Authorities andexpects both Authorities to reach an agreement as soon as possible this year.
The BRT requests the EU and Japan to align in the implementation of regulations
and to foster Regulatory Cooperation in order to create a trusted, harmonized andfuture-proof set of data protection environments both for the EU and Japan as we
believe that modern and flexible regulation has the potential to act as a catalyst for
growth, jobs and innovation both in the EU and Japan.
GDPR implementation
The BRT welcomes the work and the approach of WP29 allowing all stakeholders tocontribute through public consultations in preparing the Guidelines for the
implementation of the GDPR.
It is crucial that the GDPR is implemented in a harmonised manner across EU
Member States. This is important in order to fully take advantage of the cross border
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business opportunities. In this sense the BRT encourages the European Commission
and WP29 working together with National Data Protection Authorities (DPAs) during
these last months before GDPR will get into force in May 2018 in order to minimize
different interpretations of some Article of GDPR and to complement WP29
Guidelines with other actions in order to coordinate the work of DPAs and to properly
communicate with Citizens, Stakeholders and Companies in order to assure as muchharmonisation as possible and avoid to create different market conditions in different
Member States.
Rulemaking for the facilitation of cross border transfer of personal data
The BRT welcomes the EU-Japan joint Statement released on 14 December 2017confirming the strong political commitment in finding the best solution to allow Free
Flow of personal Data between the EU and Japan.
The BRT also expects that it will take into account during the negotiations between
the UK and the EU that there will be not hinder to the smooth transfer of data
between the EU and the UK.
Furthermore, both sides' Authorities should strengthen their dialogue to realize
consistent personal data protection regimes around the world, to assureinteroperability and to fight against digital protectionism through enhanced
cooperation with third countries and international organizations.

ePrivacy Regulation
Regarding the potential ePrivacy regulation (ePR), it is essential that there is nocontradiction with and no duplication of the GDPR and that no undue restrictions areplaced on businesses.
While to the respect of privacy remains at the core of the ePR, this right must be
effectively balanced with the other rights within the Charter of Fundamental Rights asunderlined by the Court of Justice of the EU and in line with international humanrights law.
Broadly including M2M communications into the scope of the ePR could mean thatvarious products and services that contain built-in M2M communication features like
automated supply chains, remote control or operation of machines might be coveredby the legislation. This does not seem to be consistent with the purpose andobjective of the ePR. We see the risk that the inclusion of M2M communications andapplying provisions as currently worded would lead to unworkable situations inpractice and render standard processes and developments of Industry 4.0
impossible. We suggest a clarification that products and services containing an M2M
platform do not fall within the scope of the ePR.
M2M communications are in scope in the ePR proposal. In principle, only thetransmission of data should be captured by the ePR, but the wording in the draft isconfusing. A possible broad interpretation of the provisions related to M2M

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communications could include not just the transmission of data but also theapplication/services layer.
Ancillary Services: the Parliament report has already begun to move in the right
direction by removing ancillary services, and the BRT supports this. The scopeshould be limited to core communication services to avoid misalignment with theEuropean Electronic Communications Code.
Legal persons: the ePR proposal applies to both natural and legal entities (contrary
to the GDPR). This is problematic for several reasons, not the least of which is thatM2M communications happen with limited or no human intervention and have no
personal data. This begs the question of what confidentiality is intended to protect inthis case. It is likewise difficult to understand how end-users who are legal persons
can consent to the provision of M2M services.
Terminal Equipment: The ePR prohibits collection and storing of information on
terminal equipment unless certain conditions are met. This could be problematic
because processing can be done for many legitimate purposes and device
information can be needed, e.g. for diagnostics. Proposed text establishes
constraints on information emitted by the terminal equipment and the definition ofterminal equipment is vague and could implicate a broad unintended scope.
The BRT wants to highlight that not all terminal equipment data is personal nor
sensitive and would urge the European Council to clarify the definition of terminal
equipment in its ePR report in order to avoid broad interpretation.

< Recent Progress >There has been good progress on this recommendation.
GDPR implementation
The General Data Protection Regulation will be effective on 25 May 2018. Several
guidelines for implementation were released by the Article 29 Working Party.
On 24 January 2018, the European Commission issued a communication for direct
application of the GDPR.
On 14 December 2017, Commissioner Kumazawa, the Personal Information
Protection Commission of Japan and Commissioner Jourová, the European
Commission held a meeting in regard to transfer of personal data between Japanand the EU, and issued joint statement
At Japan-EU Leaders Meeting on 26 May 2017 in Taormina, Italy, both leadersconfirmed that free flow of data is important for EU-Japan economy relations andagree to continue discussion for reciprocal smooth data transfer mechanism while
protecting appropriate personal data protection.
ePrivacy Regulation
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In January 2017, the European Commission (EC) proposed a new Regulation on
Privacy and Electronic Communications (ePR) to replace the existing ePrivacy
Directive (Directive 2002/58/EC). The proposed text follows a reforming effort fromthe EU on its privacy and data protection rules in light of the challenges brought by
the digital economy. The draft ePR is currently working its way through the EU
legislative process but the time of its final adoption is still uncertain.
The European Parliament had approved its position in October 2017
The new Text ended up to the European Council as foreseen by the usual legislative
process.
< Background >The original personal data protection laws were adopted before the technicaladvancement of internet and cloud computing. Since then, citizens have become
more concerned about privacy protection, and the differences in regulations bycountries in various jurisdictions have caused an increase in compliance costs.
Those differences have become obstacles to efficient global operation and innovation
utilising data. Reviewing the regulations is thus needed.

WP-3 / # 03* / EJ to EJ

Social Deployment of AI Technology

The BRT believes that a frank and sober discussion is needed between citizens,technology companies, civil society representatives, and governments about how tomanage risks from disruption stemming from AI technology, while realizing theirpotential for economic growth and digital transformation.
The BRT requests both authorities to invite stakeholders in industry, civil society, andgovernment to engage in an open, evidence-based discussion about theopportunities and challenges of AI-powered future. Both government and industries
need to innovate, to support a positive, sustainable and beneficial for all, digitaltransformation, and to work together to adapt to technological disruptions, which bytheir nature are difficult to predict beforehand. We therefore oppose policies that preemptively limit or ban AI technologies based on speculative harms.
The BRT supports any initiative aiming at better understanding and communicating
the potential of AI based solutions and is open to any discussion with political
Authorities in order to ensure an effective and positive implementation of thistechnology in our societies.
The BRT welcomes the upcoming Communication of the European Commission on
AI and expects it should suggest initial strategic priorities to streamline investments
and efforts at EU level. These priorities should be supported by a clear market
analysis and discussed with Industry in order to keep them continuously updated.
This should enable a better focus on key investments and identify the right sectorsapplications. A public private collaboration should be promoted at EU level with astrong international cooperation with key Countries such as Japan in order toestablish a fruitful dialogue and align on strategic values, political and investments’priorities and standards.
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< Recent Progress >This is new recommendation.
<Background>
In coming years, innovation in AI will revolutionize business, drive global economic
growth, and empower people around the world. These technologies have great
potential to augment human capability and productivity.
The G7 declaration in Torino, 2017 pointed out four main topics:
1 - Understanding that the economic, ethical, cultural, regulatory and legal issues arelinked to AI and thoroughly researched and understood by policy-makers, industry
and the civil society;2 - Noting the multi-stakeholder discussions about, inter alia, economic growth, job
creation, productivity, innovation, accountability, transparency, privacy, cybersecurity,
safety;3.- Exploring multistakeholder approaches to policy and regulatory issues that
include technical and societal considerations posed by A.I.;
4 - Having a better understanding of how the potential of A.I. can be fully andequitably realized across society and how the current and future labour force willobtain the necessary skills to work with AI based technologies.
MIC of Japan developed Draft AI R&D GUIDELINES for International Discussions inJuly 2017.
The EU-Japan cooperation would be extremely important not only for investments
and priorities but also in terms of regulatory cooperation. In the EU the application ofsome products’ Regulation to AI must be clarified by the European Commission andshould be discussed with stakeholders.

WP-4 / # 04 / EJ to EJ

Cybersecurity for Social Resilience

Security is necessary as a precondition for creating value in cyberspace. Prosperous
digital society is enabled where the trust exists. At Data utilization society achievedby initiatives such as Digitizing European Industries, Society 5.0 and Connected
Industries, convenience will be improved. But without taking appropriate measures, itwill increase vulnerability therefore it is required that the EU and Japan corporately
develop new security response mechanism are required.
The BRT welcomes that the EU and Japan share their views on the importance ofcybersecurity measures and take action for improved resilience.
The BRT requests that the EU and Japan should lead rule making on cybersecurity
towards data utilization society.
To reinforce cybersecurity capabilities, both authorities are required to enhance skill
development of cybersecurity human resources and technologies to cope with the
speed and complexities of cyberattacks.
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International cooperation is effective in coping with high-level attacks. The BRT
requests to actively conduct educational activities such as public-private joint
seminars to raise awareness of society and businesses. Information sharing schemeof security incidents should be created between the national contact points
designated in each Member States based on the NIS directive on the one hand andJapan on the other.
Cloud computing services are under the scope of the NIS Directive. Detailed
provisions will be specified by EU Member States. NIS Directive is a vital Directive to
mitigate risk of Cyber Attacks. The European Commission should work to ensureharmonised implementation in the Member States.
The BRT welcomes the new Package consisting of Proposal for a Regulation on
ENISA, the "EU Cybersecurity Agency", and on Information and Communication
Technology cybersecurity certification (''Cybersecurity Act'') proposed by theEuropean Commission.
The BRT understands the efforts of the European Commission in order to tackle thechallenge of the current landscape in the EU characterized by fragmentation and its
proposals for a “CyberSecurity Act”, but urges the European Commission to better
clarify what will actually fall under the voluntary cybersecurity certification framework
to enable tailored EU cybersecurity certification schemes for ICT products andservices. The BRT would better support a Risk based approach and a stronger
involvement of business and stakeholders in order to avoid that such certifications
could be used as an additional tool for protectionist national measures.
< Recent Progress>
There has been good progress on this recommendation.
The NIS Directive entered into force in August 2016.
The European Commission proposed Cybersecurity Package in September.2017.
The proposed regulation on ENISA foresees three main measures: Building EU resilience to cyber-attacks (reformed ENISA including a permanent
status, adequate resources, EU cybersecurity certification framework to increase
trust in digital products and services in a society that is ever more digitalised) Creating effective EU cyber deterrence (identifying malicious actions, stepping up
law enforcement responses)
 Strengthening international cooperation on cybersecurity (promoting global cyberstability contributing to Europe’s strategic autonomy in cyberspace, advancing
the EU cyber dialogue)
The GoJ revised its Cybersecurity Basic Act in April 2016.
At G7 Summit in Taormina, Italy, G7 Leaders agreed to work together with other
Partners to tackle cyberattacks and mitigate their impact on our critical infrastructures
and the well­being of our societies.
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< Background >With the diffusion of IoT, the fusion of real space and cyberspace is accelerating.
Risks surrounding cyberspace are increasing.
Critical infrastructures sustain citizen’s life and economic activities. The
impediments of their operations because of cyber-attacks, etc., are serious threats tosociety. It means that defending critical infrastructures from cyber threats is
indispensable for maintaining the business operations and a stable civil society.
As the entities conducting cyber-attacks act globally, and their attacks become
more and more advanced, addressing these serious issues requires sustained andclose international cooperation between the public and private sectors.

WP-3 / # 05* / EJ to EJ

Cooperation Towards Digital Economy

The framework for cooperation in the Digitising European Industry (DEI) should be
expanded upon 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. Considering the importance roles of SME in
global value chain, both authorities are requested to foster digitalization of SME andparticipation to digital economy.
The central goal of DEI is to ensure new technologies are integrated and expanded
throughout the European economy. An essential condition for success rests incollaboration 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 and European citizens.
The BRT supports the priority actions identified by DEI: ICT Standards, eGovernment
action plan and the Cloud Initiative which will hopefully make it easier to do business
in Europe and spur entrepreneurship. The BRT shares the focus on Public Private
Partnerships and Digital innovation Hubs as drivers for new investment in innovationand digital solutions.
The European Commission and the Government of Japan are encouraged to foster
key collaborative projects under DEI and Connected Industries.
Finally, any policies related to the DEI and Connected Industries initiative should notplace undue restrictions on innovation and its bottom up nature.
< Recent Progress >In April 2016 the Digitising Europe Industry (DEI) initiative sought to offer concrete
steps towards completing the DSM. Chief among the various initiatives stand theEuropean Cloud Initiative, Industry 4.0, and the Digital Innovation Hubs.
The European Commission released its mid-term review of its Digital Single
Market strategy on 10 May 2017 and identified to develop the European Data
Economy to its full potential as one of major challenges.
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In March 2017, METI of Japan introduced Connected Industries as a new vision
for the future of Japanese Industries.
In October 2017, METI identified five strategic fields of 1) Automated Driving andMobility Service, 2) Manufacturing and Robotics, 3) Plant/Infrastructure Safety
Management, 4) Smart Life and 5)Biotechnologies and Materials for Connected
Industries.
At the joint statement released on 20 March 2017, both authorities confirmed theimportance of data and committed to a continuous exchange of views.
On 20 March 2017, the IoT Acceleration Consortium (ITAC) and the Alliance for IoT
Innovation (AIOTI) of the EU signed a Memorandum of Understanding (MOU) for IoT
Cooperation. At the joint statement released on 20 March 2017 by the both
authorities welcomed this MOU.

WP-3 / # 06* / EJ to EJ

Skill Development for Digital Economy

The BRT welcomes initiatives such as the Grand Coalition for Digital Jobs of theEuropean Commission a multi stakeholders platform that brings together Member
States, companies, social partners, non-profit organisations and education providers,
who take action to tackle the lack of digital skills in Europe.
In this sense the BRT encourages the European Commission and the Japanese
Government to take common actions to guarantee innovative ways to create newskills for new jobs and prepare the young generation to meet the new challenges
related to the Digital evolution. New technologies such Robotics, and Artificial
Intelligence should be perceived as new opportunities to create better jobs andeconomic 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 and innovation. Joint initiatives and cross border collaborations
should be reinforced in order to find resources and new ways to create the rightcompetences for new jobs. Gender equality should be guaranteed as equal
opportunities for everybody, ensuring there are no discriminations. This is also
important to in terms of SDGs.
< Recent Progress >On 27-28 March 2018, G7 Employment and Innovation Ministers Meeting held inMontréal, Canada and discussed the theme of Preparing for jobs of the future.
< Background >Digital technologies represented by IoT, Big Data, AI and Robotics are changing
business and society. It is expected some of the current jobs will be replaced by AI
and Robotics. Both Authorities have to address concerns of these disruptivechanges represent for the working environment. Without taking certain actions,disparities may spread among our societies.
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WP-3 / # 07 / EJ to EJ

Updating Connectivies for Digital Society (5G)

The BRT requests that the EU and Japan should reinforce initiatives regarding
sharing of progress towards 5G commercial service, e.g. through sharing of trials
plans and results.
- The EU and Japan should reinforce cooperation regarding these initiatives andpromote events in this domain.
< Background >Telecom operators are working hard to prepare the deployment of 5G networks
with standardized equipment to achieve an enhanced user experience, andenhanced network performance and operation, especially to ensure it is energy
efficient. This will enable new services (new IoT services, services for verticals, ultralow-cost networks) and ensure forward compatibility for future 5G releases.
Availability of pervasive high speed network will spur social deployment of innovative
services.

WP-3 / # 08 / EJ to EJ

Possibility of Blockchain Technology

Innovations brought forth by blockchain are beneficial to individuals and to thesociety. It shall be therefore called on the governments to enable businesses andconsumers to be a part of the blockchain landscape. Currently, the biggest issue isregulatory uncertainty regarding blockchain business models. Blockchain has aunique ability to operate globally and consequently strong inter-country cooperation
is of utmost importance.
< Recent Progress >This is a new recommendation.
< Background >Blockchain has the potential to disrupt many markets as its properties enable thefollowing concepts:User Participation: Blockchain technology is unique in terms of changing the way
stakeholders interact. Consumers can be offered a completely new role within thesystem. Consumers used to be passive recipients of services, and now they can
become active contributors. This presents an opportunity for completely new
business models.
Immutability: Whatever is coded in a blockchain, it stays there for as long as theblockchain is alive, which means as long as there is the last person using or
supporting it. The technology by design prevents everyone to change what has
been entered into it. This feature can be valuable and can prevent many disputes
and irrational behaviour when it comes to establishing proof of facts. This is a
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

small, but long reaching step into a direction of people not questioning theauthenticity of the data, leading to smart contracts, automatically enforceable.
Principle of technology neutrality: Technology neutrality means that the same
regulatory principles should apply regardless of the technology used. Technology
neutrality is one of the key principles of the European regulatory framework forelectronic communications and was firstly introduced in 2002. The concept also
appears in the GDPR and has been mentioned several times by the EU
Commission when discussing regulation of blockchain related businesses.
However, if we want to fully utilize advantages of the blockchain, some changes
also need to be made blockchain specific, where suitable.

Blockchain is a rather novel phenomenon. It is not yet clear into which directions they
will develop and shape our society.

WP-3 / # 09 / EJ to EJ
Fundamental Reform of the Private Copying Levy
System (Compensation System for Private Copying)
The EU and Japan should cooperate to thoroughly reform the private copying levy
system taking into account the evolution of technology and distribution channels forlawful digital contents. Expansion of the current levy system to new devices or cloudservices should be avoided prior to the fundamental reform of the system.
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 and competitive markets in licensed digital content, with the aim to increaseavailability of more 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 toconsumers, rights holders, and service and equipment providers.
< Background >Current compensation is based on private copying levies and sometimes dates
back to the analogue era. Private copying levy regulations do not address piracy.
New emerging and expanding business models may be hindered by the current levy
system. In addition the rules vary greatly across EU and this is in contradiction with
the Internal Market principles of free movement of goods and services.

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Innovation in General
WP-3 / # 10 * / EJ to EJ

Seamless Approach Towards Digital Society

Innovative solutions and products can contribute to the realization of a prosperous
digital society only after social implementation is completed. Therefore seamless andcomprehensive approaches from innovation creation to social deployment are
required. Regulatory cooperation between the EU and Japan will facilitate
digitalization of society by deployment of new services and products in both regions.
The BRT requests that the EU to maintain strong EU R&D programmes such as
Horizon 2020 and its successor, Framework Programme 9 (FP9), that are open to
the international community, and to ensure these programmes support international
standardisation, notably standardisation in advanced manufacturing, the Internet ofThings and cybersecurity.
The EU and Japan should reinforce initiatives regarding open innovation between
large companies, universities and startups.
- The EU, its members, and Japan should share information regarding the main
initiatives in this domain with a focus on initiatives respectively sponsored.
- The EU, its members, and Japan should reinforce cooperation.
The BRT hopes that initiatives under EU’s Horizon 2020/Framework Programme 9(FP9) and Japan’s 5th Science and Technology Basic Plan will lead to further EUJapan strategic R&D cooperation.
< Recent Progress >In May 2015, The EU and Japan signed a joint declaration concerning R&D andcooperation for standardization called “A strategic cooperation on the future
generation of communication network (5G)”.
On 20 March 2017, the IoT Acceleration Consortium (ITAC) and the Alliance for
IoT Innovation (AIOTI) of the EU signed a Memorandum of Understanding (MOU) for
IoT Cooperation. At the joint statement released on 20 March 2017 by the both
authorities welcomed this MOU.
Japan’s Cabinet Office has adopted its 5th Science and Technology Basic Plan inlate January 2016. It outlines Japan’s science and technology approach for the next
5 years.
< Background >The EU and Japan share common societal challenges such as an aging
population, climate change, resources constraints, etc. Science, Technology andInnovation are engines for growth. Enhancing cooperation between the EU andJapan will increase possibilities to create new products and services addressing
complex issues.

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Countries can more effectively use their human resources and financial funds if
their R&D programmes are coordinated and if mutual access to R&D programmes iseasier for participants from both regions.
Start-ups, for their part, are at the leading edge of new market developments.
Their agility allows them to develop innovative services on short notice. Developers,
whether they work for major companies, IT service companies, digital agencies orstart-ups, are keen to optimize their development cycles using APIs so they cangenerate usage value for their applications and services. The open innovation
approach therefore makes it possible to rapidly develop novel solutions, which willdraw on the best elements of the network and offer clients innovations that are
simpler and more intuitive, which focus on usage and respond to their needs forexperience and information in real time. It is a lever of change and an accelerator ofinnovation for the benefit of customers. Innovative solutions developed by start-ups
anticipate changes in the digital world, especially in four areas that will turn businessand personal life upside down: the Cloud and connected objects, augmented reality,
big data and the ability to analyse and edit data rapidly. Cooperative innovation
should also form part of a win-win relationship. Open innovation and collaboration
with start-ups will be beneficial for both start-ups and large companies.

Aeronautics
WP-3/ # 11 / 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.
<Recent Progress>
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 bothsides' companies to maintain technological leadership and competitiveness, and forgovernments faced with severe budgetary constraints. Some Europe-Japan industrial
cooperation exists in helicopters and aero engines 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 isbetter for Japanese participation in engine programmes and as suppliers of carbon
fibre materials. The aerospace industries of other countries have improved
significantly in recent years and price competitiveness has become a key decision
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criterion.
Europe and Japan support mostly separate research programmes onenvironmental 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 andJapan could yield significant cooperation and business opportunities.

WP-3 / #12 / EJ to EJ Cooperation in Aircraft Certification
Cooperation between Japanese and European aircraft certification authorities should
be upgraded. Specifically, the BRT recommends the signature of a Bilateral Aviation
Safety Agreement (BASA) between the JCAB and the EASA that would cover bothtype certification and maintenance activities.
< Recent Progress >Significant progress has been 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) thatproves 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 areview of all the technical documentation before approval. This is often the cause ofdelivery 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 theRotorcraft Flight Manuals must be translated into the local language and approved by
the local authority, again representing an obstacle to helicopter imports.

WP-3 / # 13 / 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.
<Recent Progress>
There has been progress 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 andWorking Party 3: Digital Innovation & Mobility
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standardisation. European and Japanese territories have more similarities than eachhas with the US, so that Europe and Japan should work more closely and with ashared approach. Many European helicopters are already equipped with the
hardware to interface with ground based / satellite based infrastructure alreadyestablished to allow low altitude IFR routes, Point-in-Space navigation and GPS
precision approaches, but that may prove useless if there is no cross recognition ofstandards and regulations (software) between the countries.
It is expected by the aviation industries that the bilateral agreement between
EASA and JCAB will move forward.

Space
WP-3 / # 14 / EJ to EJ Regulatory Cooperation in Space Operations
Europe and Japan should not lose the momentum and continue to cooperate closelyon regulatory matters in the space sector.
< Recent Progress >The Space Activities Act has now been passed and will come into effect inNovember 2018. The registration process for space actors has opened in November
2017. The Satellite Remote-sensing act, dealing with Earth Observation activities andincluding the legal basis of Japanese involvement in the Global Navigation Satellite
System (GNSS), has also been enacted.
< Background >As healthy EU-Japan trade and cooperation in space services calls for common
legislative and regulatory ground, we welcome the new Japanese space regulations
which are deemed to be in line with the EU positions uttered within the EU-Japan
Space Policy Dialogue held on 7 October 2014 and 8 March 2016.
The Space Activities Act and the Satellite Remote-sensing act appear congruent withwhat the EU Authorities expected. Notably, the licensing process of space actors
authorized to collaborate with Japanese counterparts is deemed fair and inaccordance with our European legal backbones.
We do hope to further our space partnership on regulatory matters by keeping on
collaborating through the EU-Japan Space policy Dialogue in the years to come.

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Recommendations from
European industry
Aeronautics

WP-3 / # 15 / E to EJ

A380 day-time operations at Haneda airport

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, has developed amethodology (EU-Recat) that allows to maximise the operation of the A380 into
airports such as Haneda. EU-Recat is used successfully in other heavily congested
airports around the world, such as Heathrow and Dubai.
< Recent Progress>
No progress has been seen on this recommendation. However, the recent
approval of the 747-8i (Code F aircraft) for day-time operations in Haneda offers
hope that the A380 (also a Code F aircraft) will be approved soon for day-time
operation as there are some airlines wanting to operate the A380 into Haneda.
< Background >Very large aircraft such as the A380 can help increase airport capacity andthroughput while at the same time reducing congestion. As an example, London
Heathrow added over 2 million passengers in 2017, a 3% increase in passengers
figures, to 78 million, with no additional flights, thanks to airlines deploying more
A380s into the airport. Even though the number of flights will grow together with thedemand, it will be limited in the end by the capacity in terms of slots in 2020. The
recent dramatic increase in the number of foreign visitors to Japan, going from 5
million in 2010 to 28 million in 2017 has caused the GoJ to revise the target upwards
to 40 million for 2020. To see traffic grow at Tokyo’s airports and more specificallyHaneda, the use of new and larger aircraft will be an important part of the airlines’
strategies. ANA’s order for three A380 illustrates the start of the change. The A380 is
significantly quieter and environmentally friendlier than older aircraft now in use atHaneda airport and, with plans to overfly the city to increase flights to and fromHaneda, it is essential that quiet aircraft are used as much as possible. EASA isready to assist JCAB in implementing EU-Recat for the benefit of the Japanese
economy.

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SpaceWP-3 / # 16 / E to EJ Technological and industrial cooperation on Japanese andEuropean next generation of launch vehicles
There is a similarity regarding the environment surrounding Japanese and European
national launchers: Both have the responsibility vis-à-vis each respective government
to guarantee an independent access to space and due to insufficient institutional
demands, both have to be commercially competitive in order to maintain a sufficientnumber of launches. Considering this similarity and the limited governmental
budgets, Japanese and EU Authorities should strengthen technological and industrial
cooperation in the framework of the development of new generation of launchvehicles – the Japanese H-III and the European Ariane 6.
< Recent Progress >Current studies are ongoing between Japanese space agency (JAXA) andEuropean space agencies (French CNES and German DLR) based on a reusable
reduced scale first stage rocket demonstrator named Callisto.
The Ariane 6 backup launch services for the HTV-X were studied between JAXA
and Arianespace.
< Background >Considering the concomitant development of next generation launch vehicles inJapan and in Europe, which will be based on the same non-reusable technologicalapproach, Japan and Europe could, following the fruitful partnership implemented on
the reusable demonstrator Callisto, invest together in a common development on
reusable technologies for H-III and Ariane 6 improvements at a 2025-2030 horizon.
In addition to the Callisto related cooperation, a wider industrial strategic cooperation
for a wide span of schedule (short term, middle term, long term) should be jointly
studied and implemented for the mutual benefit.

WP-3 / # 17 / E to J 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. In
particular, 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.
< Recent Progress >No progress has been seen on this recommendation. Current discussions are
ongoing between Japanese and European industry in order to implement a back-up
scheme for the launch of the HTV-X spacecraft.

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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 launchdelays due to launcher technical problems. Discussions between the MEXT and theEuropean Space Agency towards a similar back-up arrangement for government
launch missions have been going on for many years but have not yet produced
results.

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