EU-Japan Business Round Table

RECOMMENDATIONS"EU-Japan Cooperation - New Opportunities for Global Growth"
8 and 9 April 2014(Tokyo, Japan)
1. Introduction
The EU-Japan Business Round Table (BRT) held its Annual Meeting in Tokyo on 8and 9 April 2014 with the theme of “EU-Japan Cooperation - New Opportunities forGlobal Growth.” The meeting was chaired by Mr. Hiromasa Yonekura, Chairman andCEO of Sumitomo Chemical Co., Ltd., and Mr. Fabrice Brégier, President and CEOof Airbus SAS.
The BRT had the pleasure and honour of welcoming high-level representatives of theJapanese and EU Authorities: Mr. Toshimitsu Motegi, Minister of Economy, Tradeand Industry of Japan, Mr. Yoshihiko Isozaki, Parliamentary Vice Minister ofEconomy, Trade and Industry of Japan, Mr. Norio Mitsuya, Parliamentary Senior
Vice-Minister for Foreign Affairs of Japan, Mr. Takao Makino, ParliamentaryVice-Minister for Foreign Affairs of Japan, Mr. Yasumasa Nagamine, Deputy
Minister for Foreign Affairs of Japan, Mr. Masahiro Yoshizaki, Vice-Minister for Policy
Coordination (International Affairs), Ministry of Internal Affairs and Communicationsof Japan, Mr. Daniel Calleja Crespo, Director-General for Enterprise and Industry ofthe European Commission, and Mr. Antonio Parenti, Deputy Chief Negotiator for theEU-Japan FTA, European Commission.
The meeting consisted of the following:
1. Discussion on, and adoption of, general and sectoral recommendations;
2. Discussions on (i) the negotiations on an EU-Japan Free Trade Agreement (FTA)/Economic Partnership Agreement (EPA), (ii) the New Industrial Revolution inrelations to sustainability, and (iii) important business themes for the EU andJapan in the post FTA/EPA era;
3. Discussions with the Japanese and EU Authorities.
The BRT Members agreed to submit their joint recommendations to EuropeanCouncil President Herman Van Rompuy, European Commission President José
Manuel Barroso, and Prime Minister Shinzo Abe of Japan.

2. Background
The BRT recognises that the Japanese and European economies are now growing,albeit modestly, and is optimistic that that growth will continue given the right policy
framework and continued growth in the emerging economies.
The BRT broadly supports the Japanese Government’s strategy of ‘Abenomics’ andspecifically the policy measures aimed at spurring private sector-led growth,1including significant regulatory and institutional reform. The Japanese business
community anticipates that 2014 will see the Japanese economy steering out of theprolonged deflation and into complete revitalisation. The BRT broadly welcomes therebalancing of the European economy and the improvement in its external
competitiveness, and notes that the growth rates of the EU economy and of the euroarea are predicted to increase, and agrees with the European Commission’s viewthat it is important not to be complacent.
As the BRT has stated in the past, it agrees with the view of the EU and Japanese
Authorities that concluding FTAs/EPAs with key strategic economic partners will help
revitalise their respective economies, strengthen the still vulnerable global economy,
as well as transforming the EU-Japan economic relationship.
Since the last BRT meeting in Paris, the BRT issued a Joint Statement 1 welcoming
the launch of the EU-Japan FTA/EPA negotiations and urged that the negotiations
should be completed as early as possible and their outcome be compatible with thehigh level of their ambition. Apart from the statement from the BRT, the EU andJapanese business communities have voiced their support on several occasions topromote the earliest possible conclusion of the negotiation, including the sectoral
dialogue held in Brussels this March. The BRT appreciates the recognition that theSummit leaders gave the BRT and its recommendations, and the reaffirmation of theSummit leaders’ “determination to continue cooperation with the business
communities on both sides, notably through the BRT”.

3. Calls and Recommendations
The BRT appreciates and welcomes the efforts that the EU and Japanese
Authorities have made in the FTA/EPA negotiations. With a strong conviction that an
EU-Japan FTA/EPA could boost trade and investment, promote job creation, andspur growth in both economies and that it will also help create new opportunities for
global economic growth, the BRT reiterates its call that the EU and Japanese
Authorities should step up their efforts to tackle and resolve the substance of theoutstanding issues and that a comprehensive, ambitious, high-level and mutually
beneficial FTA/EPA should be concluded as soon as possible. The BRT reaffirms its
commitment to make every effort to support the early realisation of an EU-Japan
FTA/EPA. BRT Members are ready to make available industry expertise to achieve
this objective.
As two of the world’s largest and most advanced economies, the EU and Japan
should work together and play a leadership role to promote global regulatory
cooperation and standards harmonisation, which other so-called ‘mega’ agreements,
such as TPP and TTIP, also try to achieve, with the aim of developing an open,
seamless global business environment that will help create new growth opportunities
not just for the EU and Japanese economies but also for the rest of the world.
At the same time, the BRT urges that the EU and Japan should extend and deepen
their cooperation beyond the framework of an FTA/EPA to address a wide variety of“Strengthening the EU-Japan Economic Partnership – Unleashing the potential of economic
relations through the swift conclusion of a comprehensive, ambitious, high-level and mutually
beneficial FTA/EPA”. It was submitted to the EU and Japanese Authorities on 15/11/2013.
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global challenges and should particularly explore opportunities to cooperate inbusinesses in or with third countries as well as in areas relating to innovation, energy,
natural resources, environment and climate change, demographic changes, global
financial markets, small and medium enterprises and human resources
development.
The BRT also calls on the EU and Japanese Authorities to address the following issues:(A) Trade, Investment, and Regulatory Cooperation
The BRT calls on the EU and Japan to: Step up their efforts to tackle and resolve the substance of the outstanding
issues so that a comprehensive, ambitious, high-level and mutually beneficial
FTA/EPA can be concluded as soon as possible. The BRT reaffirms its
commitment to make every effort to support the early realisation of an EU-Japan
FTA/EPA.
 Further make efforts to contribute to WTO’s DDA negotiations, so as to vitalise
and create momentum to move the negotiations forward.
 Strive to mutually recognise products certified under similar and equivalent
product standards and to cooperate on harmonising regulations and systems
where possible. They should also aim for enhanced cooperation in promoting
new global standards.
 Support the timely development of business. Specifically, the BRT calls for
expansion of the number of bilateral social security agreements that have beenconcluded and for liberalisation of the movement of intra-corporate transferees
within the framework of an FTA/EPA.
 Develop measures that will promote and assist each other's SMEs within theirown jurisdictions. The BRT also calls for cross-support, such as logistic support,
various tax incentives, and other measures, to be included in the EU-Japan
FTA/EPA negotiations.
Moreover, the BRT calls for the EU Authorities to speedily resolve the EU-specificissues identified in the Working Party A document by the Japanese Members of theBRT, and for the Japanese Government to resolve the Japan-specific issues identified
in the Working Party A document by the EU Members of the BRT.
(B) Life Sciences and Biotechnologies, Healthcare and Well-Being
General Introduction
 The EU and Japan should formulate concrete strategies and action plans in Life
Sciences & Biotechnology, thereby focus on measures to support theimprovement of efficient healthcare practices, food security / supply andinnovations in Biotechnology.
HealthCare (Pharmaceuticals, Medical Devices, Medicinal Gases, etc.)
 The EU government should reinforce its innovation policy to member states andclarify its healthcare policy, resulting in the appropriate evaluation of the value ofpharmaceuticals and medical devices. In addition, MHLW should consult all3key stakeholders with respect to any new HTA (Health Technology Assessment)
issues.
Japan should further support the implementation of new innovation-rewarding
pricing systems for pharmaceutical products, including the abolishment of therule of re-pricing by market expansion, thereby enhance a competitive pricing
system in order to promote innovative products.
Japan should also promote an innovation-rewarding pricing system for medical
devices in order to move towards a product-based, market-oriented
reimbursement pricing system.
The EU and Japan should improve the pharmaceutical and medical device
business environments by proceeding with regulatory harmonization and further
extension of “Mutual Recognition Agreements” in order to avoid redundantinspections of manufacturing facilities (e.g. injectable pharmaceuticals and APIs)and ensure recognition of quality management audit results for lower risk
medical devices.
Japan should support the reinforcement of strict regulations for GMP on
medicinal gases.

Animal Health Europe should introduce a 1-1-1 concept (one dossier – one assessment – one
decision on marketing authorization) for all animal health products, thereby
further harmonize the regulatory requirements for product registrations, shorten
review times and recognize the GMP certification for veterinary products.
 Europe and Japan should promote the responsible use of antibiotics in AnimalHealth.
 Japan should clarify registration requirements and shorten the review process ofintroducing recombinant vaccines from Europe.
 Japan should promote animal welfare in animal drug administration by accepting
more overseas data and alternative approach.
Plant Protection & Biotechnology
 The EU and Japan - with the support of companies - should speed up researchin Plant Protection & Biotechnology and inform the public regularly andaccurately about the state of GMOs, based on sound scientific knowledge,
thereby closely working with private sectors.
 The EU should shorten the review times for new applications / productregistrations in both plant protection and biotechnology.
(C) Innovation, Information & Communication Technologies
ICT Internet drives growth. Both sides' Authorities should continue maintaining anopen and transparent online environment under a balanced multi-stakeholder
approach.
 The BRT requests both sides' Authorities to cooperate for ITA expansion andliberalisation of services over the internet.
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The BRT calls on both sides' Authorities to increase cybersecurity cooperation tobuild a safe and robust online environment.
Balancing privacy protection and innovation is important when reviewing
personal data protections regimes. This includes unhindered cross-borderbusiness and data flows.

Innovation in General Both sides' Authorities should favour joint R&D programmes geared towards
international standardisation.
 The procedure to prepare and launch coordinated calls should be well discussed
by both parties and better standardised.
 The BRT recommends further enhancement of tax credits for R&D, in particularfor SMEs.
Aeronautics
 The BRT requests that the Authorities deepen their dialogue and significantly
upgrade the scale of EU-Japan industrial cooperation in aeronautics.
 The BRT recommends a better bilateral cooperation at an increased level onnavigation regulations for helicopters.
Space The Authorities should significantly upgrade bilateral industrial cooperation.
 The Authorities should bring about a mutual backup cooperation scheme of all
government launches using their respective satellite launcher fleets.
Defence Japan's three principles on transfer of defense equipment should becomplemented by clear and transparent procedures.
Railways The Authorities should continue and deepen their bilateral dialogue focusing,among others, on safety and innovation.
(D) Financial Services, Accounting and Tax Issues
 The BRT requests that regulating bodies fully address the impact of reforms andnew regulations on the real economy notably in the implementation phase andtake a co-ordinated approach to avoid negative effects on global businessactivities and efficient allocation of resources.
 The BRT recommends that, as to the BEPS (base erosion and profit shifting)
Action Plan, the authorities should carefully consider the risks of excessive
disclosure requirements and anti-tax avoidance measures so as not to hamper
multinational enterprises’ business activities.
 The BRT maintains its serious concern over the EC’s proposed financialtransaction tax (FTT), particularly with respect to its wider application andextraterritorial impact.

5The BRT requests that Japanese Government shall devise a detailed roadmap
towards its goal of primary-balance surplus by fiscal 2020.

(E) Energy, Environment, and Sustainable Development
Basic energy policy Energy is the basis of all economic activity. Securing a stable energy supply at areasonable price, developing the necessary infrastructure as well as reducing
energy needs are not only crucial for sustainable business activities but also forthe creation of new business opportunities. At the same time, it is important toconsider the environmental impact of energy use.
Nuclear Energy
 Safe nuclear power generation can play an important role in the energy mix ofthe EU and Japan. It could be a valuable asset supporting EU and Japanesecompetitiveness, supplying base load electricity at low cost and contributing togrid stability, economic growth and jobs creation.
 The EU and Japan should establish energy policies which preserve a role fornuclear power, one of the effective means of reducing greenhouse gas
emissions, while paying utmost attention to safety.
Safety measures
 The EU and Japan should cooperate bilaterally and in the relevant multilateralfora on all aspects of nuclear energy, in particular the development and effective
implementation of harmonized international nuclear power safety standards.
Renewable energy Uncertainties remain about the cost and security of supply of renewable energy.
However, it has the potential to complement conventional energy with emitting
no greenhouse gas and reducing import dependency. Renewable energy
sources are available in many forms, including wind, solar, hydro, geothermal,tidal, biomass, etc. Storage batteries can also contribute to ironing out
fluctuations in the supply and demand for energy.
It is necessary to study carefully how the adoption of renewable energy sources
will be specifically carried out.
Energy conservation and energy efficiency
 The EU and Japan should consider taking further measures to promote energy
conservation, by financing research projects to develop technologies andmethodologies for improving energy efficiency and by sharing their bestpractices.
Importance of measures against global warming Mitigating global warming is a global challenge. Emerging countries are alreadyovertaking developed countries as the world’s major greenhouse gas emitters. It
is consequently imperative that emission reductions are also undertaken by6emerging countries. The EU and Japan should work together to create acomprehensive and effective mechanism for reducing global greenhouseemissions.
(A) - (E) summarise the BRT's detailed regulatory and sectoral Recommendations.

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