CELEX: 51995PC0188
Language: sv
Date: 1995-05-23
Title: Proposal for a COUNCIL REGULATION (EC) on the implementation by the European Commission of actions to promote exports to Japan

EUROPEISKA GEMENSKAPERNAS KOMMISSION

                                                  Bryssel den 23.05.1995
                                                  KOM(95) 188 slutlig

                                                  95/0116 (ACC)

                                   Förslag till

                        RÅDETS FÖRORDNING (EG)

om Europeiska kommissionens genomförande av aktiviteter för att främja export till
Japan

                          (framlagt av Kommissionen)
 ---pagebreak---  ---pagebreak---                           EXPLANATORY MEMORANDUM

1.   THIS PROPOSAL IS TO BE CONSIDERED rN PARALLEL WITH THE
     COMMISSION COMMUNICATION ON BILATERAL RELATIONS WITH
     JAPAN.

     Three serious problems have been identified within Europe when promoting its
     exports to Japan :

         First, insufficient European companies are aware of the importance of the
         Japanese market, both in terms of its size but also because of the advantages it
         brings to a company which successfully establishes a presence on it. The
         Japanese market represents perhaps the largest single homogeneous market for
         European products (the US market being much more fractured and
         heterogeneous). In addition European firms which secure a foothold in Japan
         expose themselves to a climate of creativity and product innovation from which
         they can derive an increased competitive edge in other world markets. The
         development of relations with Japanese companies itself also provides an
         effective*route into many Asian markets into which they are currently expanding.
         Too few European companies are aware of these opportunities, which need to be
         explained to them.

         Second, the peculiarities of the Japanese market are such that a specific
         programme devoted to assisting exporters to become familiar with them and to
         leam how to operate successfully in a Japanese business environment forms an
         essential ingredient of commercial policy towards Japan.

         Third, the level of entry costs into the Japanese market is high and thus the
         benefits to be gained through joint efforts by European companies are
         considerable. This leads to considerable economies of scale for many sectors if
         an European Community wide market penetration effort is undertaken.

         For these reasons, a significant budget has been devoted by the European
         Community to the promotion of exports, particularly from small- and medium-
         sized companies, to Japan for many years. Much of it goes to the long-running
         and successful ETP programme (Executive Training Programme). In more
         recent years the Commission has developed, in close cooperation with
         representatives of Member State export promotion authorities, cost-effective,
         focused procedures for introducing European companies to the Japanese market
         in its "Gateway to Japan" programme

 As a conclusion, and because of the growing importance of the European Community
 programmes of promotion of exports to Japan in reinforcing European trade policy
 towards Japan on one hand, and on the other hand in complementing and adding value to
 the Member States' export promotion schemes, it is now necessary to take some formal
 action to consolidate those programmes.

                                           ©
 ---pagebreak---   A COUNCIL REGULATION IS NOW NEEDED TO PROVIDE THE
  PROGRAMMES PROMOTING EXPORTS TO JAPAN WITH A FIRM LEGAL
  BASIS.
  This point is a direct consequence of the Commission Communication to the
  Budgetary Authorities "on legal basis and maximal amountsMl as all budget lines
  exceeding 5 MECU now need a specific legal basis.

 THIS PROPOSAL INCLUDES THE FOLLOWING POINTS :
 Articles 1 and 2 of the draft Regulation indicate the type of export promotion actions
 which the Commission is authorised to undertake. The Commission is also requested
 to ensure that such actions would be compatible with the various Community
 policies.

 Article 4 lays down a consultative committee to assist the Commission in the
 performance of its duties under the Regulation.

 The legal act chosen is in the form of a Regulation, as the type of export promotion
 activities that will befinancedare likely to effect private natural and legal persons.

  Finally, the legal basis of the act is Article 113 of the EC Treaty, since the object and
  purpose of the act is to influence the volume of exports to the Japanese market,
  which clearly forms part of the common commercial policy.

SEC(94) 11Q6 final
 ---pagebreak--- RÅDETS FÖRORDNING

av den

om Europeiska kommissionens genomförande av aktiviteter för att främja export till
Japan

EUROPEISKA UNIONSEN RÅD                    HAR ANTAGIT FÖLJANDE BESLUT

med beaktande av Fördraget om upprättandet av Europeiska gemenskapen och i
synnerhet artikel 113 i detta,

 med beaktande av kommissionens förslag1, och

 med beaktande av följande:

 Kommissionen har förelagt rådet ett meddelande som behandlar de bilaterala
 förbindelserna med Japan.2

 Den ihållande obalansen i handeln mellan Europeiska gemenskapen och Japan är en
 viktig källa till spänning mellan de båda sidorna.

 På sitt sammanträde den 15 juni 1992 var rådet enigt om att det för att minska denna
 obalans bör vidtas lämpliga åtgärder för att direkt och indirekt uppmuntra och befästa den
 europeiska exportens utveckling.

 Europeiska gemenskapens handelspolitik, som syftar till att förbättra arbetsförhållandena
 för företag i Japan, behöver kompletteras med praktiska och särskilda åtgärder som stöder
 de europeiska exportörernas ansträngningar och förbereder dem för att arbeta med
 framgång på en svår marknad med speciella krav och särskilda behov.

 Bredaste möliga deltagande av företag i alla medlemsstater bör uppmuntras.
 Erfarenheterna har visat att exportfrämjande åtgärder kan genomföras effektivt med
 grupper av företag från flera medlemsstater, vilket skapar avgörande genomslags- och
 besparingseffekter.

 Aktiviteternas mål och kriterierna för verksamheten har definierats.

 'EGTnrC...
 2
  EGTnrc...
 ---pagebreak--- HÄRMED FÖRESKRIVS FÖLJANDE:

 Artikel 1

 Europeiska kommissionen skall utforma och stå för genomförandet av ett program för
 handelsfrämjande åtgärder gentemot Japan för att stödja de europeiska exportörerna i alla
 de olika stegen av uppbyggandet av europeiska företags närvaro på den japanska
 marknaden.

 Artikel 2

 1.     Europeiska kommissionen skall i synnerhet direkt och indirekt ta ansvar för
 följande åtgärder, som skall utformas för att komplettera medlemsstaternas aktiviteter
 gentemot den japanska marknaden:

 - seminarier, konferenser och nätverk både i Europa och i Japan,

 - Europeiska gemenskapens deltagande som grupp i mässor och delegationer tillsammans
 med europeiska exportörer,

  - utbildningsprogram för att bygga upp en reserv av affårsledare som kan kommunicera
  på japanska i en affärsmiljö, och

  - andra aktiviteter utformade för att maximera de europeiska experternas förmåga att
  komma in på den japanska marknaden.

  2.      Under genomförandet av punkten ovan skall kommissionen se till att de olika
  aktiviteterna ärförenligamed olika sidor av gemenskapens politik och sträva efter största
  möjliga nyttaförgemenskapens exportörer till Japan.

  3.      Det årliga program för genomförande av de åtgärder som anges i punkt 1 skall
  anges enligtförfarandeti artikel 4.2.

  Artikel 3

  För att Europeiska kommissionen skall kunna genomföra programmet för främjande av
  handel och de särskilda aktiviteter som nämns i denna förordning skall den ha
  nödvändiga finansiella resurser till sitt förfogande. För den skull skall Europeiska
  kommissionen föra in ett förslag om de finansiella behoven för de verksamheter som
  avses i artikel 2 i det normala budgetförfarandet.

  Artikel 4

  Kommissionen skall biträdas av en kommitté av rådgivande karaktär, sammansatt av
  representanter för medlemsstaterna och under ordförandeskap av kommissionens
  representant.
 ---pagebreak--- Kommissionens representant skall inför kommittén lägga fram förslag till åtgärder att
vidta. Kommittén skall uttala sin åsikt om förslaget inom en tid som ordföranden kan slå
fast med hänsyn till hur brådskande saken är, om nödvändigt genom omröstning.

Kommitténs åsikt skall föras till protokollet, och dessutom skall varje medlemsstat ha rätt
att få sin ståndpunktfördtill protokollet.

Kommissionen skall ta största möjliga hänsyn till den åsikt kommittén avger. Den skall
informera kommittén om på vilket sätt dess åsikt har beaktats.

Artikel 5

Denna förordning träder i kraft dagen efter det att den har offentliggjorts i Europeiska
gemenskapernas officiella tidning.

Dennaförordningär bindande i sin helhet och direkt tillämplig i alla medlemsstater.

Utfärdad i Bryssel den

På rådets vägnar

Ordförande

                                             4/S
 ---pagebreak---                                     Financial statement

Item B7-5022           Promotion of Community exports to non-Community countries, notably
                      Japan, Budget 1995

Article B7-851:       Promotion of European Union exports to Japan, APB 1996

                                                                        en MioEcus

   credits authorised 1995 (I)        credits requested 1996 (2)      variation in %

 commitments         payments      commitments         payments     commit    pay.
     1                  2                                 4         5=3/1     6=4/2
                                           3

9,140              8,540             13,000          12,500           42%       46%
(1) part of credits authorised for line B7-5022 intendedfor the action in question
(2) new line b7-851 (APB 96)

1. TITLE

       Proposal for a Council regulation on the implementation by the European Commission
       of actions to promote exports to Japan

2. BUDGETARY HEADING

       B7-5022
       B7-851 (1996)

3. LEGAL BASIS

       Article 113 of the EC Treaty

4. DESCRIPTION OF OPERATION :                                                   _

   4.1 General objective

        To increase EU exports to Japan.

   4.2 Duration of the action; means foreseen for its renewal

                                                Ax
 ---pagebreak---      Indefinite. Medium-term programmes are subject to annual contracts, renewable in
     accordance with the availibility of budgetary resources.

5. CLASSIFICATION OF EXPENDITURE/REVENUE

  5.1 DO/DNO:DNO
  5.2CD/CND: CD

  5.3 Type of revenue involved

      Contribution from industry, notably for the Executive Training Programme.

6. TYPE OF EXPENDITURE/REVENUE

      - 100% subsidy

      No.

      - Subsidyfor co-financing with other sources in the public or private sector?

      Yes, subsidies not normally exceeding 50% are provided to professional associations and
      other responsible organisations for actions such as participation in trade fairs, missions and
      other promotional activities.

      - Interest subsidy

      No.

      - Others
                                                                                                       V

      Financing of own initiatives, such as Executive Training Programme in Japan and the
      "Gateway tö Japan" campaign, studies, market research and specific promotion campaigns.

       - Should the action prove an economic success, is there provision for all or part of the
         Community contribution to be reimbursed?

       All agreements include provision for the reimbursement of surplus funds.

       - Will the proposed operation cause any changes in the level of revenue ?

       No.

       - Are receipts reallocated?

       Receipts from the Executive training Programme are used to offset the costs of future
         programmes.

7. FINANCIAL IMPACT ON APPROPRIATIONS FOR OPERATIONS

  7.1 Method of calculating total cost of the operation

                                                          ?
 ---pagebreak---      A. Measures aimed at improving knowledge of the Japanese market.

     The costs of the Executive Training Programme are calculated on the basis of 50 participants
     and consist of allowances for participants and costs for language tuition and other services
     provided by outside contractors.

         B. Measures aimed at developing the presence of EU industry in Japan

         The costs of the "Gateway to Japan" campaign are based on the result of a call to tender for
         the management of the campaign. The budget for the caimpaign is considered to be the
         minimun required to sustain an effective and meaningful campaign.

         C. Measures to improve trade relations between the EU and Japan.

         We receive more requests for support than we are able to meet. The current budget is the
         minimum which will allow the flexibility to respond to requests from several sources and
         enable us to support programmes in several Member States.

8. WHAT ANTI-FRAUD MEASURES ARE PLANNED IN THE PROPOSAL FOR THE
   OPERATION?

         Methods of control (submission of reports, etc.) are included in all agreements or contracts
         between the Commission and beneficiaries of subsidies/contractors. We monitor closely the
         work of all contractors and all those given financial support. Wherever possible, a
         representative of the Commission participates in commercial fairs, seminars and conferences
         to ensure that activities are carried out as agreed. We verify all activities before payment are
         made and certain agreements also require organisations to submit of financial accounts
         certified by their auditors.

9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

  9.1.        Specific objectives of proposed operation, population targeted

                 Specific objectives : links with the general objective

         The overall objective of EXPROM is to promote exports from the EU to Japan with a view
         to reducing the substantial Japanese trade surplus. Medium term objectives are to improve
         knowledge of the Japanese market, to develop the presence of EU industry in Japan, to
         promote the image of the EU in Japan. Short term objectives are to train a cadre of managers
         with an intimate and useful knowledge of the Japanese language and business culture to carry
         out a range of promotional activities to aid industry already established^jn the Japanese
         market and those trying to penetrate the market.                            "

              - Target population

          All actions are designed to be of direct benefit to EU exporters.
 ---pagebreak---            Is the operation incorporated in the financial programming of the DC) for the years
    concerned? Yes

            To which broader objective defined in the DCs financial programming does the
    objective of the proposed operation correspond?

    The promotion of EU exports to Japan

9.2 Reasons for the operation

        - Needfor intervention from the Community budget

    The reasons for this operation are closely linked to the Commission's role and responsibilities
    in EU/Japan trade relations. Currently these relations are dominated by the substantial
    Japanese trade surplus. This results partly from difficulties experienced by EU industry in
    penetrating the Japanese market and the Commission spends much time negotiating with the
    Japanese to reduce barriers to market entry. But the Japanese take an interest not just in the
    EU's requests for the reduction of barriers but also in what pratical support we give to
    industry to help penetrate the market. They see our support for industry as evidence of our
    sincerity and commitment and of a coherent EU approach to the problem The Commission's
    export promotion activities thus have an impact on the overall EU relationship with Japan.
    Member States programmes could not play this role.

    The EU programme is able to target sectors which are important within the EU as a whole
    but not within individual Member States. For example, national trade promotion efforts
    concentrate heavily on consumer goods with capital goods somewhat neglected. Member
    States have explicitly welcomed EU action in this field. Similarly, it would not be cost
    effective for any one Member State to set up a programme to send young executivies to
    Japan. But at EU level the Executive Training Programme has the critical mass necessary for
                                                                                               l
    it to work.

     Three meeting a year between the Commision and export promotion experts from Member
     States ensure that the EUs activities complement and add value to those of Member States.

         - Choice of methods of intervention

             * advantages over alternative measures (comparative advantages)

             * analysis of similar operations at community or national level

         -    * main factors of uncertainty which could affect the specific results of
             the operation

     The economic situation within Member States is affecting the confidence and activity of EU
     industry

9.3 Monitoring and evaluation of the operation

         - Performance indicators selected

                                                       O
 ---pagebreak---               * output indicators

              * indicators of impact, following the objectives chosen

    The Executive Training Programme.

    Monitoring of profession activities of former ETP participants, monitoring of participants'
    progress throughout the programme, analysis of results obtained by firms who have
    participated in the programme.

    Gateway to Japan campaign: objectives set for each market sector against which eventual
    results are evaluated, independent evaluation commissioned at the end of each campaign,
    monitoting of the views of participating companies and industries.

    Individual actions: individual performance standards are selected for all actions.

           - Details andfrequency ofplanned evaluation

    - Periodic review of the ETP programme, normally a full review every three years.
    - Reports on each ETP participant during the programme and detailed reporting by
    participants after the conclusion of the programme.
    - Continuous reporting by consultants managing EXPROM projects.
    - Reports by external organisations organising activities supported by EXPROM.
    - Indépendant evaluation of export campaigns.

           - Evaluation of results

     Executive Training Programme
     Continues to produce good quality results, major problems having been resolved over the
     approximately fifteen years of its existence.                                           \
     Gateway to Japan
     The first year of the campaign is judged to have been succesful, firmly establishing the
     campaign's identity in the EU and Japan.
     Other activities
     Shorter term activities are evaluated on termination. Actions undertaken to date are
     considered to have met objectives.

10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET)

     10.1. Will the proposed action involve an increase in Commission staff?

     No.

    10.2. Indicate the amount of staff and administrative expenditure involved in the proposed
    operation

    Three officials (one A, two B), and one END work full-time on EXPROM activities.

                                                      •*l
 ---pagebreak---  ---pagebreak---                                                                      ISSN 1024-4506

                                                       KOM(95) 188 slutlig

                                              DOKUMENT

SV                                                                          02 11

                                     Katalognummer : CB-CO-95-212-SV-C

                                                               ISBN 92-77-88962-4

Byrån för Europeiska gemenskapernas officiella publikationer
L-2985 Luxemburg

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