Julian Ryall meets Takuya Fukumoto, secretary-general of the Japan Business Council in Europe
Secretary-general of the Japan Business Council in Europe (JBCE) at the tender age of 36, Takuya Fukumoto has been based in Brussels for 18 months. The JBCE represents Japanese companies in Europe, and this year the non-profit organisation celebrates its 10th anniversary. What are the aims of your organisation? Our aims and objectives have not really changed since the JBCE was set up, namely, to represent Japanese businesses in Europe and reflect their views, especially in the public-policymaking process. Key tasks include finding out about regulatory issues, and assessing the implications for our members.
How does the lobbying process work?
Broadly, our work starts when a committee of experts and representatives of research institutes is formed to carry out preliminary research. Before legislation can be drafted, technical input is needed from experts in the field – including Japanese experts – and we contribute to that. Throughout the process, we communicate with the commission at the director level and with experts who are drafting the legislation. We visit their offices with our own experts from specific fields and explain the various technologies available.
What legislation are you working on now?
We’re very busy at the moment because the 2003 Restriction of Hazardous Substances (RoHS) directive is now in the review process. The European Parliament has proposed drastic amendments and wants to add new chemical substances to those restricted or banned, and generally widen the scope of the legislation.
Would you say that Europe is more concerned with environmental standards than Japan?
From a legislation point of view, Europe is very advanced; but in the implementation of technology, Japan seems to be more advanced. It would obviously be ideal to combine the best elements of the two because environmental issues account for about 70% of our members’ interests.
What other European legislation is causing concern?
Of the environment-related legislation, our members from the chemical industry are concerned about the Registration, Evaluation, Authorisation and Restriction of Chemical Substances (REACH) law, because it directly regulates the industry. They also worry that this extremely tough legislation will be applied to other sectors using chemical substances in their products. There are also concerns about energy efficiency legislation.
Is there support among your members for a trade agreement between Europe and Japan?
Yes. Having seen the EU-South Korea Free Trade Agreement that was signed in November, Japanese companies want a trade deal as soon as possible. The EU-South Korea agreement will be ratified in the European Parliament soon – and that is a big motivator for Japanese companies.
What is standing in the way of a deal?
Japanese companies are very keen to reach an agreement on the issue of high tariffs, but many European companies are much less aware of the need for a deal. And certain industries, such as the auto industry, oppose a trade agreement, just as they opposed the EU-South Korea FTA, because they want to protect their own industry. The political situation in both Japan and Europe at the moment is unfortunate, especially with the change of government in Japan.
The new DPJ government has said how it wants its trade relationships with the United States and Asia to change and grow, but has made no specific mention of Europe. How does Europe see Japan?
From the European side, China is of great interest but also a major headache. China has become the main focus of European trade policy. With Japan there are no serious disagreements or problems; not like 10 years ago, when there were disagreements over dumping in the electronics industry. But that just shows how European policymakers are looking at the relationship. Some sectors in Europe are very interested in Japan, and want to foster and improve the business relationship, but trade issues with Japan are not the top priority for Europe as a whole.
How can you make Japan a priority?
The JBCE supports the Economic Integration Agreement, which is often described as an FTA-plus. We are trying to find support for this agreement among policymakers and industry as a first step. We believe that both governments should at least start negotiations, and we have been to speak to officials of the Ministry of Economy, Trade and Industry here in Tokyo. They are aware of our position on this.
Are you optimistic about the future business relationship between Europe and Japan?
If we look at the Europe-Japan relationship in isolation, then we can see many differences between the two sides. But when you compare the two sides with the rest of the world, it becomes very clear that Europe and Japan have very similar values, systems and legislation, and the directions of our societies are similar. So I believe we could quite easily bring our business positions into harmony. Europe and Japan can contribute to the global discussion and make doing business easier for everyone.