Recommendationsof theEU-Japan Business Round Table
to the Leaders of the European Union and Japan
Paris, 29 & 30 April 2013

Working Party C
Innovation, Information & Communication Technologies

Working Party Leaders:
Mr. Christian GRÉGOIRE
Vice-President, Technical & Safety
Transportation Systems Division
ThalesMr. Chiaki ITO
Corporate Executive Advisor
FUJITSU Ltd

List of Abbreviations
Abbreviation Meaning
APEC
BASA
BCR
BRT
CARATS
CEF
EASA
EC
ECJ
EU
FP
GNSS
GOJ
GPS
ICAO
ICT
IEC
IIPT
IFR
ITA
ITS
JAXA
JCAB
LCC
METI
MEXT
MOD
MIC
MoU
MRA
MRJ
NATO
NICT
NTB
PFI
R&D
S&T
SEC
SESAR
SGAE
SME
STI
UK
VAT
WTO

Asia-Pacific Economic Cooperation
Bilateral Aviation Safety Agreement
Binding Corporate Rules
Business Round Table
Collaborative Actions for Renovation of Air
Traffic Systems
Connecting Europe Facilities
European Aviation Safety Agency
European Commission
European Court of Justice
European Union
Framework Programme
Global Navigation Satellite Systems
Government of Japan
Global Positioning System
International Civil Aviation Organization
Information, Communication Technology
International Electrotechnical Commission
International Integrated Project Team
Instrument Flight Rules
Information Technology Agreement
Intelligence Transport Systems
Japan Aerospace Exploration Agency
Japan Civil Aviation Board
Life Cycle Costs
Ministry of Economy, Trade and Industry
Ministry of Education, Culture, Sports, Scienceand Technology
Ministry of Defence
Ministry of Internal affairs and Communications
Memorandum of Understanding
Mutual Recognition Agreement
Mitsubishi Regional Jet
North Atlantic Treaty Organization
National Institute of Information andCommunications Technology
Non-Tariff Barrier
Private Finance Initiative
Research and Development
Science and Technology
Services of the European Commission
Single European Sky ATM ResearchSociedad General de Autores y Editores
Small and Medium Enterprise
Science, Technology and Innovation
United Kingdom
Value added Tax
World Trade Organization

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Introduction
ICT
ICT is a key to economic growth, and Internet is an infrastructure enhancing corporate andcitizens’ activities. Massive innovation is possible because it is a completely open
environment. Authorities should uphold the balanced multi-stakeholder approach thatenabled its success.
Sharing data on cloud infrastructures facilitates collaboration between the ICT industry andother sectors, leading to new services and growth. To further promote cloud computing werequest a review of the harmonization of legal instruments such as cross border data flows.
In addition both sides' authorities should facilitate the development of internet, web, mobileand cloud environments that openly share public 'big data' and expose interfaces to them,to allow the growth of independent and free markets of third party products and services.
To sustain a free and global flow of information, the internet environment must be trusted bysociety and industry. Both sides' authorities should cooperate towards a safe and securesociety by enhancing cyber security while protecting privacy, involving both the public andprivate sectors.
Innovation in General
Innovation is more than ever a key to new sources of growth in Japan and the EU. Facedwith similar challenges such as aging populations, climate change, strained resources, andthe rise of emerging economies, both sides’ authorities should increase their bilateral
cooperation.
Although the level of research in Japan and the EU is generally high, there is room for
improvement on how they can leverage research and innovation commercially.
Since 2011 the EU and Japan have an agreement on S&T cooperation. They should
improve their bilateral STI cooperation arrangements and complement them with actions
such as increasing the reciprocal access to each other's research facilities.
Aeronautics
Europe's aeronautics industry has long been a major supplier to the world market. Japan
also has many advanced technologies. Both are now challenged by new entrants. In thiscontext, joint technology and project development are necessary for both sides to maintaintechnological leadership and competitiveness. Free access to world markets and resilient
global supply chains are also key success factors.
EU-Japan industrial cooperation already exists to a certain extent in helicopters andaeroengines, but the potential is much greater. In the civil airliner area Japan can take alarger share of the European supply chain. 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 environment, social and safety requirements.

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Bilateral cooperation in certification, navigation requirements and other issues is also part ofworking together to develop markets and promote growth.
Space
Both the European and the Japanese space industries are major suppliers of space
products. The global space market, however, is small with limited growth prospects. In acontext of steadily diminishing budgets, cooperation and mutually open markets are theonly way for both the EU and Japan to achieve their goals in space and for the EU andJapanese industries to keep their ranks in the global marketplace.
Last year’s overhaul of Japan’s administrative structure for space activities provides
European space authorities with a clearly identified Japanese counterpart at the Cabinet
Office. This opportunity of efficiently discussing global space policy and a broadcooperation should be seized by both sides’ Authorities.
Satellite navigation systems, active debris removal, mutual backup of government missions
and various advanced space technologies are among the most promising and mutually
beneficial cooperations that both sides’ Authorities should consider.
Defence
Defence is a special area. However, as Japan and EU Member States most active in
defence and security issues are engaged in a trustful dialogue, more can be done todeepen relations on defence equipment and services in the interest of both parties.
Under tight budgets EU Member States pool resources to develop defence materiel, while
Japan tries to acquire main US systems and finance its own programmes.
The announced relaxation of Japan’s Three Principles on Arms Exports is a step towards
the revitalisation of Japan’s defense industry through exporting technologies and joining
international programmes. This must be preceded by G-to-G agreements to ensure proper
export control and convergence of operational requirements. While small cooperative
projects may be easier at first, ambitious, long-term goals would help governments andcompanies to keep their sights on worthwhile cooperation.
As Japan and Europe share many values and policy objectives, a bilateral dialogue on
security issues could help to establish a new balance in key world areas.
Railways
Railways are among the high-technology sectors where both the EU and Japaneseindustries are world leaders and can together continue setting world standards in the faceof 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.
To highlight priority issues, one asterisk (*) identifies “priority” Recommendations, twoasterisks (**) identify “top priority” Recommendations. (e.g. WP C / #01** / EJ to EJ)

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Recommendations from both
European and Japanese industries
ICT
WP-C / # 01 ** / EJ to EJ Economic growth by ICT utilisation
The BRT requests the Government of Japan to synchronize action plans under its Growthand ICT strategies reviewed by the new administration, aiming for economic growth by ICT
utilization. Further ICT deployment is required in e-Government, healthcare, education,
security, disaster mitigation, agriculture, logistics, etc.
On the EU side, the BRT requests steady implementation of the European Commission’s IT
strategy "Digital Agenda" action items.
Both the EU and Japanese Authorities should create conditions to facilitate thedevelopment of internet, web, mobile and cloud environments that openly share public ‘bigdata’ collections (such as geographical information systems) and expose interfaces to them,to allow the growth of independent and free markets of third party products and services
using these public environments and their data in the areas listed above..
< Recent Progress >In July 2012 the Japanese Government made a second revision of its June 2010
Roadmaps. In December 2012 the EU commission released priority actions to be
executed for 2013-2014.
< Background >The ICT industry creates many jobs as a major industry in both regions and plays a majorrole in industrial competitiveness by supporting other industries. The Digital Agenda IT
strategy published in May 2010 is positioned as a pillar of the EU growth strategy. The
Government of Japan is considering growth and ICT strategies under a newadministration.
WP-C / # 02 / EJ to EJ

Cooperation for maintenance of open, transparent internet

The BRT requests both sides’ authorities to cooperate in order to maintain an open andtransparent internet environment.
< Recent Progress >This is a new recommendation. At the 19th EU-Japan ICT dialogue held in Nov. 2012, theEU and Japan confirmed their cooperation on internet related policies issues.
< Background >This Recommendation is not about “Internet neutrality” but to protect freedom, rights offree choice and free market initiatives on the internet.
The internet has played a big role as a driver of innovation for economic growth. It is notgoverned by a single state or body, because in this case the multi-stakeholder approachworks effectively. International rules for cyberspace are under discussion at several
international conferences. In Dec 2012, a World Conference on International
Telecommunications (WCIT) was held in Dubai to review ITR. At this meeting, theWorking Party C: Innovation, Information & Communication Technologies
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proposal was made to include Internet into the ITR revision. Many ITU member countries
including EU Member States and Japan did not sign the revised ITR.
Even though we strongly support the protection of intellectual property, someinsufficiently thought-out laws have only marginal antipiracy effects while significantly
endangering freedom.
WP-C / # 03 ** / EJ to EJ Cooperation for trade liberalization on ICT services
The BRT requests that both authorities intensively work on the trade liberalization ofservices over the internet with the purpose of promoting the international flow of informationand the abolishment of compulsory requirement of local facilities and subsidiary forprovisioning of services. This includes rule making through the WTO’s new international
agreement on services and bilateral trade agreements.
< Recent Progress >The EU and The United states released a set of trade principles for information andcommunication technology services on 4th of Apr. 2011. Japan and the United States
published similar ICT service trade principles on 25th of Jan, 2012. The EU and Japan
share basic principles on ICT services.
< Background >As the ICT service sector evolves rapidly compared to other sectors, global trading rules
and regulations do not sufficiently reflect and match the current landscape of this highgrowth-potential ICT service sector.
WP-C / # 04 ** / EJ to EJ ITA expansion
The BRT requests that both sides’ Authorities endeavour to reach an early, successful
conclusion to the current negotiations to expand the ITA. The broadest possible expansionof the product scope of the Agreement to including large portions of Chapters 84, 85 and 90
will ensure that additional categories of electronics goods can be traded duty free andminimize the risk of current and future innovative technological developments giving rise to
product classification uncertainties.
(1) The EU should urgently complete its implementation of the WTO panel in the ITA
dispute without further delay to avoid new convergence technology ITA products being
reclassified as dutiable.
(2) The geographical coverage of the ITA should be expanded by encouraging morecountries to join the ITA. Membership should be promoted as a means of boosting
efficiency and productivity, improving the investment climate, helping bridge the digital
divide, and enabling the move to a more energy-efficient and climate-friendly society.
(3) Compulsory review mechanisms are needed to ensure the ITA is always kept up to dateso that it will reflect technological developments.
< Recent Progress >Both sides’ Authorities have made sizeable progress on this Recommendation.

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< Background >By extending duty-free status based on the ITA, Japan and Europe will benefit from thedevelopment of a major industrial sector that is a driver of productivity, innovation, job
creation, improved competitiveness and service quality in virtually all other sectors and in
public services.
An ITA expansion would boost trade in the whole electronics sector, remove uncertainties
relating to product classification and would ensure technological developments in the
sector are more likely to be reflected as newly-developed products are more likely to fallin these chapters.
The BRT applauds the launch of the WTO/ITA expansion negotiations and welcomes theongoing work in Geneva. The BRT especially welcomed APEC’s reaffirmation, on 8-9
September 2012 in Vladivostok, Russia, of its support for the WTO/ITA expansion of
product coverage and membership and applauds the call to action at the meeting by theleaders of the 21 APEC economies urging APEC economies to work in earnest in orderto swiftly achieve a good outcome of the negotiation .
WP-C / # 05 * / EJ to EJ Building trusted and safe online environment
The BRT welcomes that both authorities organized a Japan-EU Internet security forum andrequests continued discussion on this matter.
(1) Both authorities should establish an information sharing / exchange mechanism
between the EU and Japan for cyber security
1) Study on cyber-attack information sharing within closed organizations andcompanies.
2) Study on reporting procedure for cyber-attack disclosure from companies togovernment (even if the personal data is included in the disclosure, companies canbe exempted from legal responsibility on personal data protection.)(2) Study on mechanism for joint training such as simulation exercises involving both forces
against cyber attack(3) Construction of a safety network including government and defence industries.
(4) Conduct of technology development for prediction and immediate responses against
cyber-attack< Recent Progress >The European Commission released a EU Cyber security strategy and directive on
Network and Information Security in Feb. 2013. The EU and Japan confirmed thatinternational cooperation is important for ensuring internet security at the Japan-EU
Internet security forum held in Nov. 2012. In Oct, 2012, at Cyber Europe 2012, a
demonstration exercise was organized with participation of major financial institutions,telecom operators, internet service providers and central and local governments. A
Convention on Cybercrime became effective in Japan from Nov. 2012.
< Background >Cyber-attacks against governments and companies are increasing recently. In this highly
connected digital world, threats comes from anywhere in the world. Especially organised
attack and interference targeting certain entities is a beyond control of one enterpriseWorking Party C: Innovation, Information & Communication Technologies
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therefore to address this serious issue, it needs close cooperation with public and private
sectors.
Enhancing trust on the internet environment among societies and businesses is afundamental pillar for creation of ICT enabled new services and business models, which
will lead economic growth and job creation.
WP-C / # 06 / EJ to EJ

Building robust critical infrastructure supported by ICT

The BRT welcomes that the European Commission released its EU Cyber security strategy
and directive on Network and Information Security and positioned critical infrastructure to beprotected in a context of cyber security
Cloud computing operators are required to report cyber incidents to national authorities.
Cloud computing is used in so many areas that the complex reporting process may hinder
incident responses. The area of reporting requirement should be narrowed and thecontents of the report should reflect the risk of each infrastructure. For operational rules,
Authorities are requested to discuss with private sectors on practical procedures.
Both authorities are recommended to earmark funding for R&D on ICT solution for criticalinfrastructure and also give incentives to private sectors to construct robust resilient
infrastructures supported by ICT, including telecom network and data centre, etc.
< Recent Progress >At the Japan-EU Internet security forum held in Nov. 2012, both authorities sharedactivities on protection of critical infrastructures, BRT requests continued discussion on
this matter. The European Commission released EU Cyber security Strategy “An Open,
Safe and Secure Cyberspace” and directive on Network and Information Security in Feb.
2013.
< Background >Critical infrastructures such as energy, transportation, water, etc., are supported by ICT.
A robust and reliable telecommunication sector is especially important because othercritical infrastructure capabilities are dependent on their connectivity. Securing
connectivity is indispensable for mitigating damages due to cyber-attacks and natural
disasters
WP-C / # 07 * / EJ to EJ Balanced approach of personal data protection andinnovation in the cloud computing era
Both the EU and Japan are in the process of modifying their respective personal dataprotection regimes. The BRT is concerned that the EU and Japan would pursue their own
ways without due consideration to the international aspects of personal data protection and,in particular, the streamlining of the regimes between the EU and Japan.
(1) The BRT suggests that, to realise streamlined personal data protection regimes
between the EU and Japan, the two authorities should consult closely with each otherthrough such dialogues as the FTA/EPA negotiation and with businesses in the process

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of revising their respective regimes so that the two regimes should not become morediverse or too costly for businesses.
Concerning the EU’s proposal for a Regulation of the European Parliament and of theCouncil on the protection of individuals with regard to the processing of personal dataand on the free movement of such data (General Data Protection Regulation);(2) The BRT would welcome the envisaged facilitation of BCRs in Article 43 of the proposal
as BCRs could become a key tool for those businesses with the possibility of global datatransfers such as cloud computing. The BRT suggests that adhesion to and compliancewith recognised certification schemes in and/or outside the EU and mutual recognition
among them should be taken into account in their approval process to further facilitate
BCRs. The utility of BCRs could be enhanced further by expanding their applicability
across groups of companies with valid BCRs (not just within the same group).
(3) The BRT is concerned about its extraterritorial applicability according to Article 3, point 2
and requests the authorities of the EU to spell out precise conditions for exclusion fromits territorial scope.
(4) The BRT suggests that the transfer of the employee data of a subsidiary located in the
EU to the parent company in a third country should be explicitly stated as permissible in
Article 44 1 (a) the consent of the data subject or (b) for the performance of a contract
between the data subject and the controller.
(5) The BRT is concerned that the maximum fines stipulated in Article 79 of the proposal
are set too high for enterprises and that it could unduly deter business activities. Fines
should be not only proportionate but also equitable. Part of the collected fines should be
used for countermeasures to improve and expand cyber security.
(6) The BRT is concerned about the obligation to notify personal data breaches within 24
hours. The notification deadlines should be flexible (ideally the Regulation should
provide that the notification must take place without undue delay) so as to reflect thedifferent degrees of complexity in identifying the nature and scope of the breaches inquestion.
The BRT believes that the recognition of the adequate level of protection in Japan by
the EU would further promote the business activities across the two regions.
(7) The authorities of Japan should make sure to build on the report of July 2011 of theSpecial Commission about Personal Information Protection established in the Consumer
Commission with a view to realising a harmonised data protection regime between the
EU and Japan.
(8) The two authorities should then launch the adequacy-finding procedure under the EU
Directive as soon as feasible.
(9) In parallel with the above process, the authorities of the EU and Japan should launch a
dialogue in order to seek an international framework by enhancing cooperation with third
countries and international organisations. It should eventually lead to the closeralignment of data protection regimes around the world that would enable global

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businesses to transfer, analyse and process personal data by complying with one
regime.
(10) In addition, the authorities of the EU and Japan should improve legal certainty
surrounding the use of new technological tools such as cloud computing applications
and services. The BRT believes that such improved legal certainty would support andenhance the application of new technological developments while maintaining thedegree of data protection currently provided.
< Recent Progress >EU released its communication “Unleashing the Potential of Cloud Computing in Europe”
in Sep. 2012. In this communication, legal harmonization with international partners
including Japan for promotion of cloud computing is mentioned.
< Background >The BRT believes that the ultimate objective of personal data protection for an individual
business is to adopt and implement a reliable and cost-effective personal data protection
system at the level of a corporate group, within which the flow of data should be freeacross national borders. In order to achieve this, the national legislation of each country
should promote such a system rather than impede it by creating different requirements.
WP-C / # 08 / EJ to EJ

Societal problem solving by big data

Societal problem resolution and new business creation using big data have huge potential
for the ICT industry.
Anonymisation and pseudonymisation are useful methods for balancing privacy protection
and innovation by free flow of information. The BRT requests both sides’ authorities to set
clear levels of anonymisation / pseudonymisation technology for each category of data,thus enabling data distribution and creating an environment that facilitates big datautilisation.
Especially, the Data Protection Regulation proposed by the European Commission will
heavily burden companies if anonymous information such as numbers, marks and symbols
which cannot identify a person are defined as “personal data”. Such anonymous data
should be freely utilised to create innovative internet services.
< Recent Progress >This is new recommendation< Background >With the development and diffusion of cloud computing, social media and mobile
technology, huge amount of data is accumulated. Sharing of data is possible by cloudcomputing and this will generate new values for innovation for societal challenges.

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WP-C / # 09 / EJ to EJ
Fundamental Reform of the Private Copying Levy System(Compensation System for Private Copying)(1) The EU and Japan should cooperate / have a dialogue to reform fundamentally theprivate copying levy system and thereby promote the lawful use of licensed digitalcontent.
(2) Any review for reform should consider, in a comprehensive manner, alternative methods– including new content distribution practices – available to secure compensation forrights’ holders and creators from private copying as well as the development of licensed
cloud-based content streaming models. Increasing the availability of lawful digitalcontent will require a reform of the existing copyright regime in the EU as well as inJapan. The aim of the reform should be to promote open and competitive markets inlicensed digital content, with the aim to increase availability of more legitimate digitalcontent, at prices which appeal to consumers and hereby promote innovation andgrowth of digital creative market. The goal should be to enable the establishment of asystem which is transparent and fair to consumers, rights holders, service andequipment providers, etc.
(3) The EU and Member-State Authorities should ensure that reform of the private copying
levy system remains a priority issue for the wider copyright debate on the European
digital economy agenda. EU-level action is required if transparency and legal certainty
are to be achieved.
< Background >Current compensation is based on private copying levies and, in the EU at least, dates
back to the analogue era. Private copying levies compensate for revenue loss caused byprivate copying but do not address piracy. With current, emerging and expanding
business models (such as online content distribution (using DRM and/or) based oncontracts with individual users), private copying levies may impose double payments for
consumers. Moreover, the rules of the current levy system vary enormously acrossEurope – there is no benchmark for determining which products are subject to levies orwhat amount to charge. The ECJ ruling in C-467/08 (Padawan v SGAE) and C-462/09(Stichting de Thuiskopie v Opus GmbH) also make a reform of the system justifiable.
Innovation in General
WP-C / # 10 * / EJ to EJ Enhanced Cooperation between the EU and Japan on 21stCentury societal challenges(1) The BRT recommends that both sides’ Authorities swiftly implement flagship demo
projects and innovative solutions to common societal challenges through deregulation,easing of investment, notably for SMEs, and inviting expertise from EU and Japaneseindustry.
(2) The BRT recommends further enhancement of joint R&D projects between the EU andJapan. Work towards international standardisation should gain particular attention forsuch projects.
(3) The EU, Member-States and Japan should continuously allocate strategic budgets toinnovation investment particularly on education in science, technology, engineering andmathematics fields, and on developing competent human resources in STI, as well as toWorking Party C: Innovation, Information & Communication Technologies
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R&D Infrastructures in national laboratories and universities. Strong ties with businessshould leverage this investment.
(4) Japanese programs should be more open to EU organisations, with clear criteria.
(5) Tax credits for R&D should be expanded to encourage continued private sector
investment in R&D.
(6) Both authorities are recommended to increase matchmaking activities between EU andJapanese industry to find out common themes.
< Recent Progress >Significant progress was made for this recommendation.
In the joint press statement of the EU-Japan Summit Meeting in Brussels on 28 May
2011 confirmed that the EU and Japan will deepen and broaden the scope of theircooperation, taking advantage of the S&T agreement. The first EU-Japan Joint
Committee on Scientific and Technological Cooperation was held in June 2011. A second
meeting should be held soon this year.
More EU-Japan Coordinated calls on STI were implemented in 2012, namely on thesubstitution of rare earth (FP7 and JST), development of high speed civil aircraft (FP7,
METI as well as participation by Russia and Australia), ICT targeting 6 themes (FP7 andMIC/NICT), and two calls through an FP7 project for the coordination among European
national/regional as well as Japanese funding organizations on the resilience against
disasters and efficient energy storage and distribution.
Especially, it is worthwhile noting that the largest ever amount of 9 million Euro by the EC
and equivalent amount by MIC/NICT have been allocated onto the ICT coordinated call.
Prior to this, MIC offered matching funds for R&D through cooperation with Europe, which
was also a great step forward to stimulate Japanese participation in EU-Japan STI
projects.
< Background >The EU and Japan share common societal challenges such as aging population, climatechange, resources constraints etc. Innovation is a key engine for maintaining
competitiveness and sustainable long term growth.
Although the level of research in Japan and Europe is generally high, improvements as tohow Japan and the EU can leverage research and innovation commercially are possible.
Since 2011 the EU and Japan have an agreement on S&T cooperation.
The EC proposed 80 billion Euro investment packages (Horizon 2020) in research andinnovation. 31.7billion is allocated for seven key societal challenges, namely Health,demographic changes and well-being; Food security, sustainable agriculture, marine andmaritime research and the bio-economy; Secure, clean and efficient energy; Smart,green and integrated transport; Climate action, resource efficiency and raw materials;
Inclusive and innovative societies, and secure societies.
Under the FP7 programme, the expected annual budget execution reached a record
10.84 billion Euro in 2013.
The Enterprise Europe Network assists companies in Japan and the European Union,
through the EU-Japan Centre for Industrial Cooperation’s offices in Tokyo and in
Brussels, in finding partners for innovation in the host country.
The Government of Japan released its 4th Science and Technology Basic Plan in August,
2011, focusing on recovery & revitalization from disasters, green innovation, life
innovation, and system reform for science, technology and innovation promotion.

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WP-C / # 11 ** / EJ to EJ Better administrative setup of STI cooperation(1) The commitments required of participating organisations should be well defined and not
subjected to unexpected changes.
(2) The time used to prepare calls, publish them, select the candidate organisations,evaluate their proposals and complete negotiations should be much shorter.
(3) The procedure for preparation and launch of coordinated calls should be well discussed
by both parties and standardised.
(4) EU and Japanese Authorities should work together towards at least partiallyinteroperable systems for the administration of programmes, for example to allow
European systems to retrieve relevant data on Japanese participants from Japanesedatabases and vice versa.
(5) Japan should apply the EU’s National Contact Point system, subject to several
improvements. The system should work both ways to allow bilateral flow of information.
< Recent progress >This is a new recommendation. Both sides’ Authorities have made efforts towards morebilateral STI cooperation, but concrete results are too few to be of much significancetowards future industrial cooperation.
< Background >This Recommendation refers to the administrative effort to be made towards certain
reciprocity / use by Japan and the European Commission of the EC’s Framework
Programme / Horizon 2020 programme for bilateral cooperation in STI, as well asJapanese programmes open to European partners (the latter chiefly affiliates ofEuropean entities in Japan). Much more EU-Japan STI cooperation is urgently needed.
Since 2011 the EU and Japan have an agreement on S&T cooperation, but practicalproblems remain. The Japanese administration of international cooperation has little
structure and many discretionary aspects. The administrative and legal constraints of EC
calls, on the other hand, are inconvenient (and their criteria sometimes irrelevant) forJapanese partners that EU industry would need as key participants in important
cooperation projects.
WP-C / # 12 / EJ to EJ

Sharing of infrastructures

The EU and Japan should work more closely to allow mutual access to their facilities.
< Recent progress >This is a new recommendation.
< Background >Sharing large infrastructures for R&D is vital for the promotion of STI while avoiding
duplication of efforts. In the field of basic science this has become common practice, forexample in the latest initiative of International Linear Collider (ILC), while industrial
access to facilities is less common. In addition to existing efforts like ITER and CERN,
cluster-to-cluster cooperation may be an effective way to promote SMEs’ access tofacilities (cf. recommendation below on clusters). Examples are : access to the European
Spallation Source (to be built in Lund, Sweden) by Japanese industry, and cooperation /Working Party C: Innovation, Information & Communication Technologies
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Page 13 of 31benchmarking among Living Labs. Reciprocal access by EU industry to Japanesefacilities such as KEK, J-PARC, SPring-8 and SACLA would also be good progress.
WP-C / # 13 / EJ to EJ

Business cooperation between EU and Japanese clusters

Strengthen business cooperation between EU and Japanese clusters. Specifically:(1) The Authorities of the EU and Japan should support the EU-Japan Centre for Industrial
Cooperation and the European Cluster Collaboration Platform to further advance theircluster cooperation agenda.
(2) A more strategic use of clusters should be made to support SME internationalizationand global competitiveness, especially in emerging industries where cluster
cooperation would have a strong impact.
(3) The Authorities of the EU and Japan should intensify cooperation between EU andJapanese clusters by giving a stronger focus to concrete actions. In particular, both
authorities should support matchmaking activities and tailored individual approaches
between EU and Japanese clusters in strategic areas of mutual interest.
< Recent Progress >The European Commission organised a EU-Japan Cluster Matchmaking event inNovember 2012.
< Background >Clusters create a fertile business environment at local level fostering innovation,
increasing productivity, enhancing cooperation between academia and industry, andfacilitating internationalisation of SMEs. Japan and EU countries have many clusters,some of them world-class, innovation-driven and competitive in global markets, and open
to international cooperation. There is an increasing business interest and scope fromboth sides to strengthen cooperation between clusters.
To facilitate and have a more institutionalised and sustainable approach, a MoU has
been signed between the European Cluster Collaboration Platform and the EU-Japan
Centre located in Tokyo and Brussels. Thanks to this MoU, Japanese clusters will beable to use this platform to identify partners in EU countries (and vice versa), explore
opportunities with them, develop visiting schemes for their companies and startdeveloping joint R&I projects.
Intellectual Property Rights
WP-C / # 14 * / EJ to EJ Harmonisation of IPR regulations
EU and Japanese IPR regulations should be harmonised, such as grace period for patents,
etc.
< Recent progress >This is a new recommendation.

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< Background >Late last year the European Parliament has voted the Unified Patent System. It has threecourts of justice for mediation and arbitration (Paris, London and Munich). This is a great
step forward to simplify European patent applications. However, many practical details
remain to be discussed and harmonised. For instance the grace period is 0 in the EU, 6months in Japan.
Innovation in Aeronautics, Space, Defence and Railways
Aeronautics
WP-C/ # 15 **/ EJ to EJ Government-Led Industrial Cooperation in Aeronautics
The Authorities of Japan and the EU should establish a permanent dialogue aiming tosteadily and significantly upgrade the scale of EU-Japan industrial cooperation inaeronautics based upon mutual trust, equality and mutual benefits, and stimulated bygovernment funding.
< Recent progress >No concrete progress has been seen on this recommendation over the past twelve
months.
< Background >Europe's aeronautics industry has long been a major supplier to the world market. Japan
also has many advanced technologies. Both are now challenged by new entrants. In thiscontext, joint technology and project development are necessary for both sides'
companies to maintain technological leadership and competitiveness. It is also anecessity for governments faced with severe budgetary constraints. Europe-Japan
industrial cooperation already exists to a certain extent in helicopters and aeroengines
but the potential is much greater. More government-led cooperation between Japaneseand EU industries would result in many gains for both sides.
In the civil airliner area, EU-Japan industrial cooperation has stagnated since the early
2000s, when 21 Japanese suppliers joined the A380 programme. Japan lost many
opportunities of working with European industry in aerostructures. The situation is better
for Japanese participation in engine programmes and as suppliers of carbon fibre
materials. The aerospace industries of other countries have evolved significantly in recent
years, both in skills and capacity, and price competitiveness has become a key decision
criterion.
WP-C / # 16 * / EJ to EJ Environmental Issues in Aeronautics Technology
The Authorities of Japan and Europe should establish broad bilateral cooperation on
environmental issues.
< Recent progress >Minor progress has been made on this recommendation.

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< Background >Europe and Japan support mostly separate research programmes on environmental
issues, from noise to emissions. One joint effort is a British-Japanese cooperation on the
Trent family of wide-body engines. Japanese involvement is slowly growing as newmodels are being added. Another effort is part of a small French-Japanese programmeon high speed aeronautics technologies. 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 / # 17 * / EJ to EJ Cooperation in aircraft certification
Cooperation between Japanese and European aircraft certification authorities should be
upgraded. Specifically, EU-Japan cooperation should be upgraded at the level of a fullbilateral agreement. The use of English for all relevant documents should be permitted.
< Recent Progress >Progress is made towards a BASA between Japan and the EU.
< Background >There is a bilateral agreement between US and Japanese civil aviation authorities thatfacilitates 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 equipments forhelicopters whose Type Certificates are already validated by JCAB should be almost
automatic, but instead the Japanese authority requires a review of all the technicaldocumentation 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 inpublic 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 tohelicopter imports. .
Recently, Japanese civil aviation certification resources have been drained by a local
development project (MRJ programme) at the expense of imported products leading tosignificant delays (and costs) in airworthiness clearance for European products.
WP-C / # 18 / EJ to EJ

Cooperation on navigation regulations for helicopters

Establish an increased level and better cooperation between Europe and Japan on thedevelopment of low altitude IFR routes and satellite based navigation regulations forhelicopters.
< Recent progress >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..

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< Background >The US, Europe and Japan are working on developing their own regulations andinfrastructure without an adequate level of exchange of information and standardisation.
European and Japanese territories have more similarities than each has with the US, sothat Europe and Japan should work more closely and with a shared approach. Many
European helicopters are already equipped with the hardware to interface with groundbased / satellite based infrastructure already established 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 of standards and regulations (software) between the
countries.
Space
WP-C / # 19 * / EJ to EJ

More Effective Cooperation Among Space Authorities

Major bilateral meetings of Space Authorities should not only involve ESA and JAXA but
also the European Commission and Japan’s Cabinet Office in order to discuss broader
issues.
< Recent progress >This is a new recommendation.
< Background >The European Space Agency and JAXA have regular meetings, but they are not frequentenough and yield few concrete results. Space issues are not limited to only technology
and science, but also extend to major global policies and politics.
WP-C / # 20 ** / EJ to EJ Government-Led Industrial Cooperation in Space
The Authorities of Japan and the EU should significantly upgrade the scale of EU-Japan
industrial cooperation in space, stimulated by government funding.
< Recent progress >No progress has been seen on this recommendation.
< Background >Europe's and Japan's space industries have been major suppliers to the world market:
European companies with systems and subsystems, and Japan companies withcomponents and the ground segment. Joint technology and project development arenecessary for both sides' companies to maintain technological leadership andcompetitiveness. It is also necessary for governments faced with severe budgetary
constraints. Europe-Japan cooperation already exists in some technology areas but thepotential is much greater. More government-led cooperation between Japanese and EU
industries would result in many gains for both sides.

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WP-C / # 21 * / EJ to EJ Civil Purpose Satellite Technology
In the civil satellite technology field, Japanese space Authorities (at Cabinet level) andEuropean space Authorities (EU Commission, European Space Agency, and Europe’s
national space agencies) should establish a common mechanism for a formal andpermanent dialogue with the purpose of identifying further mutually beneficial subjects ofcooperation. Of particular interest to both the EU and Japanese industries are advanced
broadband and mobile communications services that would be applicable, among othercases, to the rescue of populations hit by a natural disaster.
< Recent progress >Nearly no progress of interest to industry has been seen on this recommendation, except
for minor cooperation in some specific device development.
< Background >Europe and Japan have many complementarities in satellite technology and similarneeds in terms of space telecommunications, broadcasting and observation. Note that
discussions and cooperation on advanced technologies are also useful to promotecommon EU-Japan standards and thus benefit both sides' industries.
WP-C / # 22 / EJ to EJ Cooperation in launcher technology
European and Japanese space Authorities should consider a close cooperation indeveloping their respective next national launchers.
< Recent progress >This is a new recommendation.
< Background >Europe and Japan will for the first time develop new heavy satellite launchers almost
simultaneously. Cooperation in their development could have many technological,
budgetary and industrial advantages. If a close bilateral cooperation is not studied at an
early stage it will soon be too late for both sides to gain significant advantages.. Previous
European attempts at major engine cooperation have failed inexplicably.
WP-C / # 23 / EJ to EJ Mutual Backup of Government Satellite Launches
Japanese and EU Authorities should bring about a mutual backup cooperation scheme of
all government launches using their respective satellite launcher fleets.
< Recent progress >No progress has been seen on this recommendation.
< Background >Europe's satellite launcher Ariane 5 and Japan’s H-IIA are used in an arrangement toback up each other's satellite launches on a commercial basis. This reduces the risk oflong launch delays due to launcher technical problems. Years of discussions between
Japan’s MEXT and the European Space Agency towards a similar back-up arrangement

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for government launch missions have not produced results.
WP-C / # 24 / EJ to EJ Cooperation on Satellite Navigation Systems
EU and Japan Authorities should establish a close cooperation between Galileo and the
Quasi-Zenith Satellite System. This should include frequency management, handset
technology (receiver chips) development, and cooperation in GNSS meetings to set up
service standards. Furthermore, the EU and Japan should develop cooperation on GNSS
downstream applications.
< Recent progress >Preliminary progress has been seen on this recommendation. The European
Commission and JAXA have signed a standard ITU agreement on radio frequency
compatibiliy between the first QZSS satellite and Galileo.
< Background >The EU's Galileo and Japan's Quasi-Zenith Satellite System will soon become reality.
Augmentation and various commercial services are among many mutually beneficial
applications that require extensive mutual information between EU and Japanese
Authorities and their encouragement and facilitation of industrial cooperation.
Cooperation in frequency management is required because unlike GPS, both Japan andEurope operate multiple frequencies for different services. Other important questions
include anti-jamming technology development and receiver chip technology development(important for economies of scale).
WP-C / # 25 / EJ to EJ Cooperation on Active Space Debris Removal
EU and Japan Authorities should lead a global effort to remove space debris from low andgeostationary Earth orbits. Near-term bilateral cooperation should include defining debris
removal standards (or code) and developing debris removal technologies.
< Recent progress >Much groundwork has taken place around this sensitive matter, but concrete cooperative
action still seems far off.
< Background >Space debris are a serious threat to today's commercial utilisation of space. Because of
their peaceful policies, Japan and the EU are best positioned to define debris removal
standards (or code) then lead and help police a global effort to remove debris from low
and geostationary Earth orbits. Japan's and Europe's Space Situational Awarenessprogrammes and the EU Commission's draft Code of Conduct for Outer Space Activities
can serve as a basis and starting point towards that effort.

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Defence
WP-C/ # 26 / EJ to EJ Exchange and Protection of Classified Information
Japan and European countries should make official agreements for government andindustry to exchange and protect classified information pertaining to promotion of products
and to joint development.
< Recent Progress >Positive steps are being made – in October 2011 a bilateral agreement covering theexchange and protection of classified information was signed between the French andJapanese authorities. Both have agreed to ensure the reciprocal protection of classified
information exchanged between Japanese and French governments, including theJapanese Ministry of Defence. The agreement provides procedures for protecting theclassified information appropriately, subject to both countries’ national laws andregulations.
A similar agreement is expected to be signed between the UK and Japanese authorities
during 2013.
< Background >European and Japanese defence industries have many complementarities and could, if
they were allowed to fully cooperate, jointly develop high performance and cost-efficient
products and technologies that are necessary to the forces of both sides. This is madealmost impossible as European and Japanese companies cannot directly exchange
classified information on the products or technologies
European Governments and defence companies provide classified and/or commerciallysensitive information during product promotion and development/production. The same
may also occur when a relaxation to the Three Principles on Arms Exports is in place
which would enable the Japanese Government and Japanese defence companies to codevelop with European industries and/or to promote products to Europe. Suchclassified/sensitive information must be adequately protected.
WP-C / # 27 / EJ to EJ

Export Controls

The BRT highlights that the Internal Compliance Programmes (ICP) for Dual-Use Goods
and Technologies under the Wassenaar Arrangement continues to play an important role inpreventing destabilizing accumulations of conventional arms around the world. The EU andJapan should build on the ICP practices in the business sectors and provide preferential
treatment to ICP holders. Both governments should also make best efforts to harmonize
their export control systems and thus provide a level playing field for exporters.
< Recent progress >This is a new recommendation.

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WP-C/ # 28 / EJ to J Relaxation of the Three Principles on Arms Exports
The announcement of a relaxation to the Three Principles on Arms Exports was warmly
welcomed by European industry.
The new Guidelines for Overseas Transfer of Defence Equipment announced on 27th
December 2011 should be underlined by a set of clear guidelines, rather than one off
exceptions for specific purposes. These guidelines should be gradually put in place by end
2013.
Outside of the G to G bi-lateral agreements arising from the relaxation, the need for a clear
set of guidelines would be to the benefit of both the European and Japanese defence
industries.
< Recent Progress >In order to go forward with concrete international joint development and production, aframework is required between the GOJ and a country concerned to ensure strict controls
are in place. The detail of the framework will be coordinated between the GOJ and eachcountry concerned.
Progress is being made towards the first bi-lateral agreements between Japan andEuropean member States.
< Background >The Government of Japan (GOJ) released “Statement by the Chief Cabinet Secretary on
Guidelines for Overseas Transfer of Defense Equipment etc” on 27th December, 2011.
This guideline enables overseas transfer of defence equipment etc in cases related topeace contribution and international cooperation and international joint development andproduction of defence equipment etc. contributing to the security of Japan on the premisethat strict controls are in place.
WP-C/ # 29 / EJ to EJ Defence Purpose Satellite Technology and Services
The BRT recommends that the Authorities of Japan and EU Member States should
establish a regular dialogue aimed at sharing experience on defence purpose satellites.
This should also include dialogue on the delivery of secure communications services (asPFI is evolving as a growing subject in the new economic environment).
< Background >In the defence field as well, European satellite manufacturers have developed
considerable and universally recognised know-how and experience. Some EU countries
have also developed specific expertise and know-how in the structuring of PFI for securesatellite communications.
Europe has a long history of international cooperation in the space field and has
significant capability to accommodate Japanese needs and information sharing requests.
The establishment of mechanisms for exchange of classified information is required toenable this know-how and experience could be shared with Japanese manufacturers
These mechanisms will open the door for a regular dialogue between the Authorities ofJapan, EU Member States and their respective industries.

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WP-C / # 30 / EJ to J Facilitation of Re-export of Defence Equipment Imported for
Demonstration Purposes
Japanese Authorities should implement simple procedures to facilitate re-export of defence
equipment imported for the purposes of demonstrations at forums such as trade fairs andexhibitions.
< Recent Progress >No streamlined process for demonstrator equipment has been addressed.
< Background >Defence export regulations make it difficult for foreign firms to re-export defence
equipment they import for the purposes of demonstrations at trade fairs, exhibitions andother forums. This severely constrains their ability to market their products. Special reexport arrangements for defence equipment imported into Japan for these purposes
would give Japanese procurement agencies a better understanding of the full range ofoptions available.
Based on the Foreign Exchange and Foreign Trade Act and the Export Trade Control
Order, an export licence is necessary to re-export defence equipment for the purposes ofdemonstrations.

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Recommendations from the European industry
ICT
WP-C / # 31 * / E to J
Expanding the scope of “Self-verification of conformity”
procedure on telecommunication equipment
The Japanese government should consider expanding the scope of “Self-verification ofconformity” procedure, including radio base stations for cellular networks, WLAN equipment,
etc.
< Recent Progress >To our knowledge there has been no progress on this Recommendation.
< Background >The “Self-verification of conformity” process allows a manufacturer to take its own
responsibility for verifying whether its telecom products meet the relevant technicalrequirements, and then to introduce them to the Japanese market. However the scope islimited and excludes radio base stations for cellular networks, WLAN equipment, etc.
Innovation in Aeronautics, Space, Defence and Railways
Aeronautics
WP-C / # 32 / E to EJ Level Playing Field in Civil Aeronautics Markets
The Authorities of Japan and Europe should encourage competition and facilitate the entryof each other's aircraft on their respective domestic markets on the basis of reciprocity.
Airlines and other major customers should be encouraged to diversify their sources ofsupply. Cooperation in aeronautics should not be biased towards US industry, but should
be significantly increased between the EU and Japan.
< Recent progress >There may have been progress on this recommendation.
< Background >Europe's wide-body civil airliners have not made significant inroads in Japan, andJapan's small jets have not made significant inroads in the EU. Procurement decisions
are best when made on a competitive basis, free from irrelevant influence. Unbiased
cooperation will help avoid more undue influence on the procurement decisions ofcommercial airlines.
Diversification of supply sources will benefit customers,
shareholders, taxpayers and the general public.
WP-C / # 33 / 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

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weight restrictions should be re-examined in view of allowing the operations of new andlarger airplanes such as Airbus made A380 and A350. We request both sides’ Authorities incharge to cooperate in making the necessary verifications. Additionally, for the newest midsize A350 aircraft, operation could be possible with the re-verification of the withstand loadwith regards to part of the construction.
< Recent progress >No progress has been seen on this recommendation.
< 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 an internationalterminal 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 thecapacity in terms of slots. 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 andnewer aircraft. In order to avoid disturbing the flow of the Tama River, the D runway was
overhauled using 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 lineup of
Airbus’ newest A380 and A350 series exceeding the weight limit, these aircraft could nolonger be used as they currently are (cf. chart below).
Unit: tons

Weightlimit

A380

A3501000

A350900

B747400

B777200ER

Total weight

400

571

298.9

268.9

396.0

286.9

Main gear load,t/gear

139.5

161.6

140.8

126.0

92.8

134.9

Wheel load

26.2

26.9

23.5

31.5

23.2

22.5

WP-C / # 34 / E to J Bidding process in public tenders for helicopters(1) Evaluation system: More balanced competition should be ensured by comprehensive
evaluation systems which also take aircraft performance into account.
(2) Single year budget procurement constraints should be relaxed in order to avoid
unnecessarily severe requirements for delivery.
< Recent progress >No significant progress has been seen on this recommendation.
< Background >a. Although cheaper is not necessarily better, almost all Japanese government tenders
still have an evaluation system merely based on price competition.
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is still tied to this constraint. In some cases the time between the bid award and therequested delivery is less than six months, which is much too short for helicopter
manufacturing, considering also the hurdles of local certification upon import. Thiscondition has been relaxed in the past few years (for police procurement of medium size
helicopters for instance, but not for light size helicopters yet).
Space
WP-C / # 35 * / E to J Approval of Satellite Launch Service Providers
The approval by Japanese Authorities of foreign launch service providers through theenvisioned approval system of Japanese commercial satellite launch projects should be fairand consistent with commercial world practice as recognised and formalised by the French
Space Operations Act of June 2008 and associated by-laws.
< Recent progress >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 itcannot be used to make competition in Japan difficult for EU launch service providers.
WP-C / # 36 * / E to J Legitimate use of Private Finance Initiative projects
The Authorities should explicitly ban their own use of Private Finance Initiative (PFI)
projects to protect local satellite makers and launch service providers.
< Recent progress >No progress has been seen on this recommendation.
< Background >Using PFI is a legitimate way for a government agency to procure space-based services
in a budget-efficient manner. Authorising domestic candidate companies to include theirown commercial payloads (so-called hosted commercial payloads) in the satellites thatthey will procure to provide the services is also legitimate. But barring foreign suppliers
from bidding for the satellite and the launch service on the grounds that the government
procures a government-only space-based service is not legitimate because the presenceof the hosted commercial payload makes it a commercial satellite. If this practice is not
explicitly banned, much of the commercial satellite and launch services markets may
vanish piecemeal into supposedly government programmes. (Note: We do not disputethe practice of launching purely government satellites by a local government launcher.)Working Party C: Innovation, Information & Communication Technologies
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WP-C / # 37 / E to J Opening the market for space ground equipment
Procurement of integrated systems should be encouraged.
< Recent progress >No progress has been seen on this recommendation.
< Background >Japan's international procurement of space ground equipment is often broken up in small
lots tailored for Japanese companies. Integrated systems have better cost performanceand are more reliable.
Defence
WP-C / # 38 / E to EJ Internationally recognized procurement processes for defence
equipment and services
The following should be applied to all defence procurement processes:










Japan should improve transparency towards foreign suppliers by making the Statementof Requirements for procurement processes more widely available.
Japan’s MoD should adopt NATO standards for the initial research and development
phase to strengthen competition and reduce development risk.
Japan’s MoD should also implement multiyear contract scheme for weapon acquisitionin order to obtain the best conditions in terms of prices and local content from foreign
manufacturers.
If a foreign company is selected, then the Japan MOD should separately select the local
industrial partner based on a licenced production and modification package madeavailable by the selected foreign company.
The MoD should also send a clear message to suppliers that if they do not contract on
the basis of their selection there will serious consequences or cancellation of theselection.
The BRT would also encourage MoD to create an appeal process.

< Recent 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.
WP-C/ # 39 / E to EJ Greater emphasis on life cycle life costs in awarding contracts
The BRT recommends that more emphasis on Life Cycle Costs should be included inStatements of Requirements released as part of the procurement process.

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< Background >The BRT welcomes the greater emphasis placed to date on Life Cycle Costs by Japan inits defence procurement. Budgeting based on life cycle costs allows governments tobetter plan their defence expenditure. It also creates fairer competition between bidders
for contracts as it demands fuller disclosure of cost information. EU companies haveconsiderable experience in modeling and predicting Life Cycle Costs and are confident
about their ability to guarantee predictions and enter into fixed price contracts.
WP-C / # 40 / E to J Removal of unlimited liability for public tenders
Unlimited liability should be removed from the terms and conditions of public tenders, as thisputs foreign bidders at a considerable disadvantage in relation to local contenders. We areopen to discuss liability concerns with the Government of Japan and to work to identify amutually agreed solution.
< Background >The Japanese government currently requires companies bidding for public tenders to offer
unlimited liability as part of their bid. This requirement is not found in other markets.
Moreover, there are other options open to the Japanese government to address its liability
concerns.
WP-C/ # 41 / E to J Examination of innovative procurement approaches for defence
equipment
The costs of development of new defence equipments are increasing and at a time when
defence budgets in many countries are being reduced. There are examples today of thesecosts being shared among allied nations. Europe has established some original cooperation
schemes and organizations – on the nations side (joint procurement agency) and on theindustry side (joint venture companies)
EU industry can assist the MoD in meeting cost reduction targets with Performance Based
Logistics (PBL), Private Finance Initiatives (PFI), commercial off-the-shelf solutions, leasing
schemes, and procurement techniques to minimize costs. Examples of progress achievedby LCC models through an initial phase of performance-based logistic support or through afully integrated operational support programme can be demonstrated by European
Governments already partnering with industry and familiar with through-life cost benefits.
Access to several decades of European experience in using an International Integrated
Project Team (IIPT) could be a great asset for Japan.
Japan should enter into agreements with EU countries to ease technology and informationexchange at both a government to government level and an Industrial level.
Intellectual property rights must at all times be respected if partnerships are to be
successful.
The Government of Japan should introduce innovative procurement approaches, such as
partnerships with industry, to reduce procurement costs, place more emphasis on LCCs,
and promote the IIPT approach.

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Simple measures such as planning more defence study missions to Europe would improve
the level of knowledge and understanding of European achievements by Japan’s politicaland administrative leaders.
< Background >Japan could achieve cost reductions through implementation of innovative procurement
practices, such as Performance Based Logistics, Private Finance Initiatives, Commercial
off-the-shelf ("COTS") solutions and leasing schemes.
WP-C/ # 42 / E to J Forum for Japanese and EU defence industries to meet anddiscuss
It is recommended that a specific forum is established to bring EU and Japanese defence
companies together in order that both sides may learn more about each others capabilities
and desires for collaboration.
< Background >The progress being made under the relaxation of the Three Principles on Arms Exports
has indicated that there should be increased discussion on a B to B basis in order to
identify potential projects for collaboration.
Railways
WP-C / # 43 / E to EJ

Modal shift towards rail passenger transportation

The modal shift to rail in passenger transportation is seen as a way to cope withenvironmental issues as well as tackling the congestion issues in urban areas. A few
initiatives have been taken by both parties for stimulating such a shift.
The potential impact of an increased modal shift from various passenger transportation
modes to rail transportation should be shared between both parties. In view of theenvironmental, safety and societal impacts of such a modal shift to rail, it is recommended
to stimulate and favour mutual access to each party return of experience. It should allow
paving the way to a better optimisation of rail systems and operational modes which are
currently in use in both party countries;< Recent progress >This is a new recommendation.
< Background >The BRT recognizes that Japan on the one hand and EU member states have both along tradition and structured knowledge of railway transportation. As a matter of fact
during the last decades both parties developed innovative solutions ranging from rollingstock, signalling and dedicated infrastructure in order to address needs in passengers
and freight transportation. Such innovations range from High Speed Train systems toperforming urban rail systems. The passenger transportation capacity and availability is a
key common challenge. Worth to notice that Japanese passenger traffic network isamong the busiest network in the word. The EC issued a EU Transport White paper SEC(2011) that emphasizes the impact of the rail sector in Transportation. A sharing ofWorking Party C: Innovation, Information & Communication Technologies
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experience for the two most mature contributors to the development of rail on aworldwide basis should benefit to both economies.
WP-C / # 44 / E to EJ

Railway safety certification requirements

Both authorities should put in place some open description of compliance requirements aswell as current certification processes. The certification procedures which are relevant for
the national railway undertaking companies should be made full transparent to both parties.
Their evolutions should be subject of mutual information. It is proposed that the European
Railway Agency and the Japanese Ministry of Land, Infrastructure, Transport and Tourism
could establish a dedicated working group in order to better capture the certification
processes in both party networks.
< Recent progress >This is a new recommendation.
< Background >(1) It is recognized on a worldwide basis the very long standing experience in railway
safety domain which is owned as well by the Japanese railway operators and as well by
the EU railways undertaking companies.
(2) The safety certifications are driving some of the railway equipment and systems
procurement requirements. As a consequence a so called “safety clause” has beensometime considered as a non-tariff barrier in particular for the import of EU
equipments in Japan. In order to address this safety related issue, the openness ofcurrent safety related certification processes in European member states and in Japan
could be an appropriate way for opening dialogue between both party industry players.
It would foster the cross-fertilisation of safety performance of the worldwide railway
industry.
(3) During the last few years, a significant effort has been undertaken in the EU in order toget better visibility on the certification in EU member states. These later relates tospecific requirements for safe operation of relevant railway networks. The European
Railway Agency mission is indeed taking care of the certification coordination between
EU member states National Safety Authorities. In its last so-called “Fourth Railway
Package” the EU commission paved the way to a common authorisation procedure
granted by the European Railway Agency.
WP-C / # 45 / E to EJ Long term objective and innovation in railway industry
Both parties should investigate the possible cooperation on technical and innovative
solutions for the railway industry and network undertaking companies. Such cooperation
would support indeed an increase of the modal shift to rail transportation. The contributionof such cooperation program should take benefit of the pioneer role of both parties indomains as such as high speed systems and as such as urban rail efficient systems.
< Recent progress >This is a new recommendation.

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< Background >Based on the EU Transport White paper published in 2011, a set of proposals have been
made by the European railway industry to the EU commission. The innovation domains
are those related to attractive and green passengers rolling stocks, advanced traffic
management and control systems, long life tracks and rail infrastructure, seamless andattractive travel tools and efficient and sustainable freight transportation.
The above topics are indeed in the scope of activities of Japanese industry players andnetwork operators. As a matter of fact, operational rules in railways influence directly theway railway systems are designed. As a consequence the possibility to address open
some best practice experience and to pave the way for cooperative effort is considered
as a solid background for next generation railway systems.

WP-C / # 46 / E to EJ

Life Cycle costs in Railway transportation

In railway networks the lifetime of systems, equipment and their operational rule
implementation is typically a few decades. The efficiency of transportation systems is basedon proper return of experience and maintenance practices. The both parties large
experience should be shared more extensively.
Both authorities are recommended to share best practices and give incentives for private
sector to develop adequate shared tools for optimising the life cycle costs of railway
networks.
< Recent progress >This is a new recommendation.
< Background >The role of services in railway transportation is key for the economic viability of theoperational systems. In the various domains as such as rolling stock, trackside
infrastructure, dedicated telecommunications and signalling, the long span life cycle
requires a comprehensive view of the life cycle care and support. The life cycle
operational activities are namely: maintenance services, performance improvement
based on operational data collection and analysis, specific operational rule training for the
railways undertaking staff, preventive maintenance tooling, innovative service ability
introduced at the design level (“designed to maintain”).
The operational experience of EU railways companies and of Japanese operators
cumulates many decades of specific knowledge.
The optimisation of the railway networks in EU and in Japan should take benefit of joint
initiatives involving operators and industry.

Working Party C: Innovation, Information & Communication Technologies
EU-Japan BRT 2013 Recommendations Report
Page 30 of 31

Recommendations from the Japanese industry
ICT
WP-C / # 47 / J to E

Applying reduced VAT rate to e-Books

To end the unnecessary discrimination between e-Books and paper books, the BRT
recommends e-Books should also be liable for the reduced VAT rate applied in the EU to“culturally-worthy” items and the rate charged should not exceed the rate applied to printed
publications.
< Background >The BRT strongly supports a reduced taxation rate on “culture.” In the EU, the longstanding application of a reduced VAT rate on culturally-worthy products has helped
spread fine culture widely and rapidly at lower prices, and has contributed to thedevelopment of rich culture and improvement of the quality of life.
e-Books are currently liable for the standard rate of VAT in the EU. Thanks to their lower
price, availability of contents, possibility of searching and their saving of resources eBooks offer even better access to fine culture than printed books.
The principles under which the EU VAT regime operates seek to avoid discriminationand to ensure neutrality. The current discrepancy therefore offends the basic principlesof the tax.
Recent developments in the EU mean that from 1 January 2012 two Member States(France: 7%; and Luxembourg 3%) have applied the reduced rate to e-books in line with
our recommendation. The European Commission (which polices application of EU rules
by Member States) has recently announced, following an investigation into the treatmentof e-books in France and Luxembourg, that it is referring both countries to the European
Court of Justice for breaching EU VAT rules by applying the reduced rates.
Literature, particularly books, promote the culture of each country and each region. In
order to protect and promote these cultures, the BRT recommends retention of the fixedbook price policy. By doing so, small to medium sized publishers will be protected fromextreme fierce price competition which music industry suffered heavily from the actionsof one dominant player.

Working Party C: Innovation, Information & Communication Technologies
EU-Japan BRT 2013 Recommendations Report
Page 31 of 31