EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION
日欧産業協力センター
Report on“EU-Japan Connectivity: EU-Japan Business Collaborationsin Third Markets” SeminarDecember 3, 2019 Tokyo

The EU-Japan Centre for Industrial Cooperation organized a seminar on the topicof EU-Japan business collaborations in third markets on December 3, 2019 inTokyo. With the signing of the Partnership on Sustainable Connectivity andQuality Infrastructure by Japanese Prime Minister Abe and European
Commission President Juncker on 27 September 2019, the EU and Japan arecommitted to strengthen what they can do together on the global scene withpartners in third countries.
The seminar was prepared in coordination with the conference of EuropeanBusiness Organisation Worldwide Network (EBOWWN) in Tokyo, whichassembled approximately 40 EU chambers of commerce and industries in theworld. The seminar attracted more than 130 attendees.
Mr. Philippe de Taxis du Poët, EU-side General Manager, EU-Japan Centre for Industrial
Cooperation explained in his welcoming remarks, the seminar’s background as follows.
• EU and Japan are intensifying their relations through the Economic Partnership
Agreement (EPA) and the Strategic Partnership Agreement (SPA), and implementationof agreements is key to benefit businesses, people and economies;•EU and Japan are certainly important markets themselves. But they are also importanthubs for accessing third markets e.g. Africa, South East Asia, Latin America, to formulate
the win-win partnership.
Mr. de Taxis du Poët hoped that, through various presentations and discussions, theseminar would contribute to operationalization of collaboration and connecting key
stakeholders in the EU, Japan and third countries.
Mr. Tetsuya Watanabe, Director-General for Trade Policy, Ministry of Economy, Tradeand Industry (METI) gave presentation on the deepening of EU-Japan cooperation andextension to third countries as follows:•EU-Japan EPA / SPA which came into force on February 1, 2019 became an important
foundation for EU-Japan relations and will further strengthen strategic relations.
•With the Partnership on Sustainable Connectivity and Quality Infrastructure, Japan andthe EU affirm their commitment to establishing a Connectivity Partnership based on1

sustainability as a shared value, quality infrastructure and their belief in the benefits of alevel playing field.
•The EU-Japan Centre for Industrial Cooperation plays key roles for promoting all formsof industrial, trade and investment cooperation between Japan and EU and in thirdcountries.
After introducing various measures for promoting cooperation in third country, Mr.
Watanabe said that the METI would expect that public and private sectors work together
to organize many projects under the partnership principle in third countries.
Mr. Nikolaus Boltze, Representative Director & President of thyssenkrupp spoke onbehalf of the German Chamber of Commerce & Industry in Japan (AHK Japan). Basedon a survey conducted by the AHK Japan, Mr. Boltze reported that Japan is perceivedby German companies as a key business hub to other countries. In fact, 69% of survey
respondents are involved in projects with Japanese companies outside of Japan,
especially in ASEAN. This involvement has been consistently increasing over the years.
In addition, 46% of respondents generate revenues in cooperation with Japanesecompanies outside Japan at least to the same extent as inside of Japan. Mr. Bolze
explained that German companies involved in third country cooperation with Japanese
partners are, in terms of region, focusing primarily on ASEAN countries, and then in
China and Europe.
Main reasons for involvement in third-country cooperation projects are: making use ofcompany’s global sales and service network, increasing the strategic importance of theirsubsidiaries in Japan, saturation of the Japanese market, and ability to attain higher
margins. From the point of view of his company, thyssenkrupp, it is a precondition that
their partners have ‘state of the art’ technologies.
Mr. Martin Schultz, Senior Economist, Fujitsu Research Institute made analysis of third
market collaborations from the three perspectives of corporate business, governments
and strategy. As for third market strategy, Mr. Schulz emphasized the importance ofconnectivity, challenges for which include free data flow, digital finance, platforms andtraining. Mr. Shultz indicated that the connectivity aligns market and political interests.
The difficulty, however is to distinguish if one project, for example in infrastructure, ismore market or politics-oriented. For example, he indicated that China’s Belt and Road
Initiative is a political issue for the EU and Japan, but it is more of a market-oriented
matter for China.
Mr. Jason Collins, Chair of the European Australian Business Council and Chair of theEuropean Business Organisation Worldwide Network (EBOWWN) made presentation oneconomic outlook for Europe and the EBOWWN. According to Mr. Collins, the EBOWWN
can be a key intermediary for EU-Japan business partnerships in third countries.
2Mr. Tomotsugu Iwata, Director, Invest Japan Department, Japan External Trade
Organization (JETRO) explained JETRO’s investment promotion activities. According toits “Survey on Japan’s Investment Climate 2019,” which analyze the perception ofJapan’s business environment among foreign-affiliated companies, Japan is attractive
because of the size of its domestic market, its strategic location as a gateway to othermarkets, in particular in Asia, and the existence of suitable partners (companies,universities) with outstanding technology or products. Mr. Iwata said that the EU-Japan
collaboration in third markets can be promoted with relevant European organizations withwhich JETRO has concluded memorandums of understanding (MoUs).
Mr. Ryoichi Abe, Director, Division 2, New Energy and Power Finance Department I,
Infrastructure and Environment Finance Group, Japan Bank for International
Cooperation (JBIC) explained their co-financing activities with the European Investment
Bank (EIB). JBIC and EIB concluded an MoU in October 2018. But, even before signing
MoU, examples of co-financing with EIB existed, Mr. Abe said. He indicated three such
examples as Panama Canal expansion, Refinery Project in Egypt and Intercity Express
Program in the United Kingdom. As for JBIC’s support to projects in third market, Mr. Abe
touched upon a windfarm project in Egypt and an offshore wind joint venture between
Denmark and Japan.
Mr. Fabrizio Mura, EU-Japan Centre for Industrial Cooperation moderated the roundtable discussion on “dos and don’ts” and recommendations for successful collaborationsin third markets. A total of seven panelists participated in the discussion. All of the three
representatives of EU Chambers of Commerce & Industry (Brazil, Ivory Coast andSingapore) explained actual cases of EU-Japan cooperation in their respective region.
According to Mr. Maximilien Lemaire, EU Chamber of Commerce & Industry in Ivory
Coast, Japanese companies prefer to partner with European companies to save costs
and get benefit from their experience in the market when bidding in infrastructure building
projects. Ms. Nele Cornelis, EU Chamber of Commerce & Industry in Singapore said that
European companies appreciate partnerships with Japanese companies because of
their expertise, the quality, their sales’ channel, the similar values, and for being
gateways to other markets in Southeast Asia.
Mr. Toyoaki Fujita, Business Development Executive, Toshiba Energy Systems &Solutions Corporation explained examples of collaboration with French companies insuch renewable energy projects as hydraulic and geothermal in Africa. Drivers for thesecollaborations were complementary knowledge and experience, with Toshiba being
specialized in geothermal projects, for example while French companies on construction
3work. Co-financing by the EIB and JBIC/Nippon Export and Investment Insurance (NEXI)
was very important for such projects in Africa, Mr. Fujita pointed out.
Mr. Jan De Turck, Sales Manager Japan & Korea of Septentrio, a Global Navigation
Satellite System (GNSS) receiver manufacturer of Belgium explained their experience ofcooperation with a Japanese system integrator. By working with a Japanese partner,
Septentrio can exploit features that bring benefit in Asian countries. As for successful
Japan-EU business collaborations, Mr. De Turck suggested first to understand thedifference of negotiation process in the EU and Japan, then, tailor the right mix for eachcountry/case can help to get the deal with appropriate conditions.
Mr. Jean-Pierre Ragaru, CTO of Ingérosec, made presentation on activities of Ingérosec,
a French-Japanese joint venture, and examples of past collaborations with Japanesecompanies in Africa and Asia. He indicated that the complementarity has been the key
for successful collaborations. Mr. Pierre Mustiere, CEO of Bouygues Asia explained
examples of collaborations with Japanese companies in Asia, including construction ofoffice/hotel/residential buildings in Myanmar and subway construction in Vietnam.
Mr. Shogo Yoshitake, Director, European Policy Division, Ministry of Foreign Affairs(MOFA) emphasized in his closing remark, that the EU-Japan relations are at a historicalturning point with the signing of the Connectivity Partnership. He said the connectivity isvery important for future EU-Japan cooperation from the following reasons.
(1) Existence of strong momentum, (2) Concrete cooperation, engaging all means, and(3) Moving bilateral cooperation further forward
Next year, the EU-Japan Summit will be held in Japan. According to Mr. Yoshitake,preparations for the Summit have already started, and connectivity remains a priority
topic. He went on to express his personal hope that the EU-Japan third country
cooperation will develop in such a manner that geographical areas for cooperation are
specified as in the case of the India-Japan “Factsheet”, which was agreed last year when
Indian Prime Minister Modi visited Japan.
Ms. Patricia Flor, Ambassador of the European Union to Japan also stressed theimportance of the Connectivity Partnership. She indicated that the political momentum isindeed strong and it is necessary to join our strengths together to focus on theimplementation of the agreements. In this respect, the role of businesses is key, she said.
Ambassador Flor disclosed that the new European Commission is elaborating on thepossibility of funding cooperation projects on connectivity.
Prepared by Toshiro Fukura, Manager, Policy Seminars and Analysis

4Mr. Philippe de Taxis du Poët inaugurated the seminar.

Round table discussion followed speech session

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Discussion among speakers

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