A4-0259/97

Resolution on the communication from the Commission to the Council on Europe and Japan: The next steps (COM(95)0073 - C4-0147/95)

The European Parliament,

- having regard to the Commission communication (COM(95)0073 - C4-0147/95),

- having regard to the Council conclusions of 29 May 1995,

- having regard to its resolution of 22 January 1993 on trade and economic relations between the European Community and Japan ((OJ C 42, 15.2.1993, p. 260.)),

- having regard to the Joint Declaration of The Hague of 18 July 1991 between the Council and the Government of Japan, which defines objectives for EC-Japan cooperation on political and security issues and advocates closer trade and economic relations,

- having regard to the results of the annual EU/Japan Summit held in Tokyo on 30 September 1996, the results of the High Level Consultations of 23 April 1997 and the results of the EU/Japan Summit held in The Hague on 25 June 1997,

- having regard to the Commission's Communication to the Council 'The Global challenge of international trade: A market access strategy for the European Union¨ of 14 February 1996 (COM(96)0053),

- having regard to the Conclusions of the ASEM summit in Bangkok on 2 March 1996,

- having regard to the report of the Committee on External Economic Relations and the opinions of the Committee on Foreign Affairs, Security and Defence Policy, the Committee on Economic and Monetary Affairs and Industrial Policy and the Committee on Research, Technological Development and Energy (A4-0259/97),

A. whereas the EU and Japan share a common interest in maintaining global economic and political stability and safeguarding the environment world-wide,

B. whereas cooperation between the EU and Japan, as defined in the abovementioned Declaration of 18 July 1991, is based on the common attachment of the EU and Japan to freedom, democracy, the rule of law and human rights and the development of a prosperous and sound world economy based on free trade and market principles,

C. whereas the development of economic relations between the European Union and Japan is a crucial precursor for the deepening of political and cultural relations,

D. whereas, nevertheless, the problem of access to EU markets is not comparable with the obstacles which still exist for businesses which would like access to the Japanese market,

E. whereas the deepening of political and cultural relations should foster mutual knowledge between Japanese and European citizens,

On political aspects

1. Believes the European Union should support and encourage a greater political role for Japan on the world stage, hoping that in its turn Japan will support the EU's policies in Asia;

2. Considers that political dialogue with Japan, as with all other third countries, must include issues of human rights, this discussion touching not only on questions of human rights in the European Union and Japan but also involving coordination of both sides' positions with regard to the protection of human rights elsewhere in the world and particularly in other Asian nations, and also issues of development and cooperation;

3. Notes with approval that Japan's moderate spending on its military forces has been a major influence in damping down tendencies towards a major arms race in the Far East, and looks to Japan to take on greater responsibilities at regional level;

4. Welcomes Japan's increased participation in international peace cooperation assignments, and looks forward to greater Japanese involvement with the United Nations, covering peacekeeping/peacemaking/humanitarian aspects and financial contributions as well as greater political influence partly through a restructuring of the United Nations system and in particular of the Security Council;

5. Considers that the EU/Japan Summit in The Hague on 25 June 1997 has highlighted the fact that Europe's relationship with Japan now includes an increasingly important political dimension; that dialogue on subjects such as China's and Russia's integration into the world community, the Korean Peninsula and the initiatives within ASEM should lead to cooperation in deepening links between Asia and Europe;

6. Calls on the European Union and its Member States to work closely with Japan to implement a full nuclear test ban treaty as soon as possible;

On economic aspects

7. Welcomes the fourth consecutive annual fall in Japan's bilateral trade surplus with the EU for 1996 which fell 36.2% to ECU 17bn, but is concerned by the signs of the reversal of this trend in the last quarter of 1996 and January and February of 1997;

8. Notes, however, that there exists a very large and persistent imbalance between European Union investment in Japan and Japanese investment in Europe, and that foreign direct investment (FDI) flows into Japan are characterised by large fluctuations, suggesting that market access restrictions in Japan are still significant, such as the ones identified in the recent JETRO White Paper on FDI;

9. Calls on the Commission to carry out a study on the links between the variations in Japan's global trade surplus and recent fluctuations in the value of the yen;

10. Notes, furthermore, that over the past 10 years European Union FDI in Japan has remained weak, regrets that the last period has been characterized by an outflow of EU capital from Japan and asks the Commission to study its causes; welcomes the announcement by the Commission on 1 July 1997 that a study is to be set up to examine the causes of the unbalanced direct investment ratio between the EU and Japan; insists that such a study should draw a complete and accurate picture of the situation, including an operational basis for policy measures aimed at intensifying FDI links between the EU and Japan;

11. Notes, with concern, that whereas Asia's share in total Japanese FDI outward flows now outranges by far the share of the European Union, inward flows from Japan into the European Union have been dropping almost continuously throughout the 1990s; that these developments seem to indicate a change of destination of Japanese FDI in favour of the emerging economies of Asia and away from the European Union; notes, moreover, that the increasing involvement of Japanese companies in the NICs of Asia and China is combined with the build-up of powerful business networks in these countries comparable to the ones established in Japan;

12. Points therefore to the importance of the ongoing deregulation programme operated by Japan, as well as to the inputs made by the Commission to the final revision of this programme (28 March 1997);

13. Shares however the Commission's opinion that overall progress within the programme is limited, and that Japan should carry out vigorous deregulation to extend beyond the areas of the present exercise and considers therefore that Japan should formulate a new far-reaching, pluriannual deregulation programme;

14. Calls on Japan to create de facto free trade conditions in the country, without using established trade monopolies, since only in this way will European products have greater access to the market, in accordance with its consumers' interests;

15. Considers that deregulation not only favours the presence of European operators on the Japanese market, but will improve also the performance of the Japanese economy and give Japanese consumers greater choice;

16. Stresses that administrative reform, changes to competition legislation and practices, reform in the distribution sector and recognition of foreign testing and inspection bodies should all be included in the future deregulation programme on the basis of unequivocal commitments and a precise timetable for the implementation of measures;

17. Notes the benefits to global business that should result from the dismantling of most foreign exchange controls and hopes that it will lead to further deregulation of Japanese financial services;

18. Acknowledges the positive effect of the Trade Assessment Mechanism which has now concluded its first phase and hopes that these efforts will continue in a second phase;

19. Calls for speedy progress in negotiations of a far-reaching MRA (Mutual recognition agreement) for testing and certification of products and welcomes commitments by Japan with regard to acceptance (as from 1 September 1997) of results of quality testing of European medical devices;

20. Points to the need for the EU and Japan to cooperate within multilateral economic organisations, in particular the WTO, on subjects such as relations between trade and competition, investments, environmental protection, core labour standards and government procurement, in order to set up, eventually, agreed multilateral rules;

21. Considers that both sides should work together within the WTO, as a matter of high priority, in order to reach a MFN financial services agreement with significantly improved market access commitments and national treatment by December 1997;

22. Considers, furthermore, that the EU and Japan should aim for an early conclusion of negotiations on the OECD Multilateral Agreement on Investment, with a view to strengthening rules concerning investment in order to foster international flows;

23. Strongly supports the existing sectoral scientific and technological cooperation agreements between the EU and Japan;

24. Recommends that this cooperation be strengthened and extended, in an effort to produce systemic policies for distributed, rather than centralised, knowledge production, which aim at the reduction of technological inflexibility, in accordance with its resolution of 28 November 1996 on prospects for European science and technology policy in the 21st century ((OJ C 380, 16.12.1996, p. 72.));

25. Strongly supports increased EU involvement in the Japanese-inspired Human Frontiers Programme, which integrates basic research in human biology and brain function with informatics and cybernetics, and believes that this programme should be further strengthened;

26. Welcomes the Exchange Fellowship Scheme between the EU and Japan which has been established for young scientists and engineers, but asks the Commission to bring forward proposals to expand and to improve the balance of the scheme;

27. Supports the idea of exchanging a Memorandum of Understanding between the EU and AIST (Agency for Industrial Science and Technology), with a view to enabling European researchers to benefit from the research and logistical facilities in the research centres in Tsukuba, and therefore encourages the Commission to further develop its initiative in this regard;

28. Considers that, in the event of failure of direct negotiations, the WTO dispute settlement procedure is the appropriate instrument for both sides to resolve differences in appreciation of world trade rules; considers also that the settlement of the Japanese liquor tax dispute, following the outcome of the WTO procedure, is a good example of the results which can be obtained by following multilaterally agreed procedures;

29. Believes that the Union should follow closely US/Japan bilateral initiatives, and insist that any market openings be extended on a multilateral basis;

30. Supports the EU strategy of persistent, consistent and global pressure for change, and stresses the importance of the Union and the Member States pursuing a clearly defined set of goals through coordinated action;

31. Stresses the invaluable contribution to EU-Japan relations which could be made by the European and Japanese business communities, and calls on the Commission to support initiatives for a structured input by economic operators to EU/Japan dialogue, drawing inspiration from the example of the Transatlantic Business Dialogue (TABD);

Furthermore

32. Considers that a high priority should continue to be attached to strengthening industrial cooperation (including training and exchange programmes for industry leaders, scientists, government officials) and cooperation between trade unions, as well as scientific, environmental and cultural cooperation, in parallel with the creation of a new multiannual deregulation programme of broader scope;

33. Hopes that the Japanese government will play a greater and more forthcoming role in the field of environmental protection in its own legislation as well as in international institutions and fora;

34. Requests the Japanese government to take action on the proposals put forward in November 1996 by the Economic Council and the Administrative Reform Committee to reform various sectors of the Japanese economy;

35. Reaffirms it strong support for the Commission's export promotion activities, including the Executive Training Programme (ETP), which has enabled more than 670 young European executives to participate in an 18-month programme in Japan;

36. Regrets that no progress has been made on the 'Europe House¨ project, which would assist in promoting the image of the EU as a cohesive body;

37. Instructs its President to forward this resolution to the Council, Commission, the governments and the parliaments of Member States, and the Government and Diet of Japan.