Growing mutual interests mature EU-Japan relations
A global partnership is developing....
Over the past four decades, Europe and Japan have emerged together as leading world economic powers. With a combined population of 620 million, the EU and Japan comprise less than 10% of the world's population, but over 40% of its GDP. This prominence has brought a concomitant increase in global responsibilities with regard to promoting and maintaining stability and security, both regional and global.
Japan and the EU are committed to reinforcing ties and building a true cooperative global partnership in areas that go beyond their mutual trade and economic relationship.
Japan is Europe’s most important partner in the Asian region, whilst for Japan, the EU is a centre of stability and growth in a turbulent economic world. The successful changeover to the euro in 2002 and its economic and political impact on Japan have further strengthened the importance of the EU-Japan dialogue and presents opportunities to build an even stronger relationship.
Both the EU and Japan share the values of freedom, democracy and the rule of law, and are committed to an open international economic system based on market principles. These common interests make the EU and Japan natural allies in their efforts to develop a stable multilateral political and economic system.
Achieving this goal has never been more important than in the period of post-Cold War political instability and in the wake of the recent, devastating economic crisis in Asia. The EU and Japan have both played their part in helping to meet demands created by these and other problems. Fortunately, the political and economic interdependence between Japan and the EU places both sides in a strong position to shape developments in a mutually beneficial way. The EU and Japan are therefore by nature “global partners” and this relationship can only grow stronger.
... based on ever-converging interests
A firm basis for developing the EU’s relations with Japan was established in the “Joint Declaration between Japan and the European Community and its Member States” signed in The Hague in 1991. This sets out, in general terms, the principles and objectives of integrated dialogue and cooperation and provides a framework for high level meetings, of which the annual summit between the President of the European Council, President of the European Commission and the Japanese Prime Minister is the pinnacle. An annual meeting between the Commission and the Japanese Government at Ministerial Level as well as other sectoral high level meetings reinforce that institutional structure.
The Declaration also signalled the beginnings of a broader EU-Japan partnership, with the introduction of a political dimension to the relationship and the intensification of cooperation in a number of fields. So the EU and Japan today are natural partners who consult closely with each other in response to global challenges.
The overall relationship is anchored around three axes ....
- Political dialogue
- Economic and trade cooperation
- Cooperation on common and global challenges
The guidelines for the EU's policy towards Japan, which were formulated by Ministers in May 1995, confirm the balanced and cooperative long term approach proposed by the European Commission in its March 1995 Communication, "Europe and Japan: The Next Steps". This approach has since been complemented by the Commission working paper on Japan of 21 April, 1999, which proposed new initiatives to strengthen the EU's relations with Japan into the new Millennium.
The substance of the 1991 Joint Declaration has been further developed at annual summits. Past summits have focused equally on economic and political issues, laying the groundwork for a new phase in the bilateral relationship.
2001 Action Plan kicks off a decade of closer co-operation ...
On 8 December, 2001 an EU-Japan Summit took place in Brussels where the two sides launched a decade of EU-Japan Co-operation. An Action Plan with concrete actions aimed at achieving a deeper relationship was adopted along with a declaration on working together in the fight against terrorism.
These confirm the positive evolution of EU-Japan relations. The Action Plan should allow the relationship to attain its full potential by moving forward in areas of mutual interest.
The ability of the EU and Japan to carry on developing broader ties will be enhanced if trade and economic relations are stable. This is one of the principal reasons why the EU places emphasis on ensuring improved and effective market access in Japan. In particular, deregulation of the Japanese economy - such as the removal of unnecessary and obstructive regulations - has a vital role to play in removing barriers to trade and foreign investment. This process is of mutual benefit, since it will also help boost the Japanese economy and further integrate it into the world economic system. Structural and regulatory reform is the key to securing Japan’s return to sustainable economic growth in the longer term.
A look forward ....
Economic and monetary union (EMU) has equipped the EU, the world’s largest trading area, with an international currency to match its economic weight. Furthermore, the EU has begun the process of enlargement by opening its doors to ten South, Central and Eastern European countries in 2004, and to Bulgaria and Romania in 2007. This process has made the EU a partner of even greater importance, speaking with an ever more united voice in years to come.
At the same time, Japan is also raising its global profile and is forging a wider international role, both in political and economic terms. It has embarked upon a policy of renewal and change and is tackling issues inhibiting its further development as a world political and economic power.
Given the underlying communality of interests, the prospect is for a further broadening and strengthening of the EU-Japan partnership in the framework of the Action Plan. This should continue to occur multilaterally - past examples include co-operation through ASEM and collaboration on promoting a comprehensive new WTO Round of trade negotiations - as well as bilaterally on the economic, political and cooperation fronts.
The key to building a still more successful global partnership will be how effective both sides are in translating their common interests into joint actions.
