カジノシークレット銀行出金 Closer and Stronger Economic Partnership
between Japan and Europe

- カジノシークレット銀行出金's Observation and Views on European Integration
and the Japan-Europe Business Relations -

カジノシークレット銀行出金
April 18, 2006

Outline Chart <PDF

1. Introduction

2. Basic Perspectives on European Integration

(1) EU Enlargement
(2) EU Deepening

3. Issues Needing Resolution To Promote Closer Japan-Europe Economic Ties

(1) EU Directives and Laws of Member States
(2) Environmental Policies
(3) Trade Barriers
(4) International Financial Reporting Standards (IFRS)
(5) Competition Policy
(6) Labor Market Flexibility

4. カジノシークレット銀行出金 New Stage in Japan-Europe Economic Ties

(1) Bringing the Japanese and European markets closer together
(2) Coordination and cooperation to address global issues
(3) Multiple approaches to strengthen the Japan-Europe relations

1. Introduction

With the May 2004 accession of 10 countries, カジノシークレット銀行出金uropean Union (EU) has become a single market of 25 countries with 450 million people. カジノシークレット銀行出金U has been carrying out institutional reforms to adapt to this historic transformation. The substantial change, combined with the successful introduction of カジノシークレット銀行出金uro as a single currency, has been enhancing カジノシークレット銀行出金U's presence in the international community. Today, カジノシークレット銀行出金U has about as strong a voice and influence as the United States at the G8 summit meeting, the WTO and the OECD. カジノシークレット銀行出金U often exerts significant influence on not only the process of building and maintaining the international order and systems but also the direction of rule making, which defines the scope of global business activities.

Japan, now emerging from a long recession and on the road to economic recovery, is being called upon to contribute more to the international community by fostering stability and growth in the global economy. Japan and Europe should now strengthen the business relationship and work together for world prosperity.

The Japan-Europe economic relation has changed greatly. The days of contentious trade friction have gone. Close and cooperative relations have been friendly maintained between Japan and Europe. Japanese investment in カジノシークレット銀行出金U region has increased almost to the level of its investment in the United States on a flow basis. ^#1 Japan and Europe are highly developed economic entities accounting for 40% of global GDP. They share common values grounded in the principles of democracy, the rule of law, human rights, a market economy system, a recycle-oriented society and other basic human values.

Medium- to long term requirements make it important that Japan regard Europe as one of its most important economic partners. At a time when the process of widening and deepening of the EU integration is taking a new turn, Japanese business community needs to clarify its thinking with regard to the economic impact of European integration on their business activities, and find ways to fasten Japan-Europe economic ties. It was with this in mind that カジノシークレット銀行出金 examined, from a variety of perspectives, the new direction being taken in the Japan-Europe economic relations. The various views of members of Japanese business circle have been compiled into this opinion paper.

2. Basic Perspectives on European Integration

(1) EU Enlargement

カジノシークレット銀行出金U's expansion eastward

With the addition of 10 new members in May 2004, カジノシークレット銀行出金U has become a single market with about 450 million people and a GDP of 10 trillion euros. ^#2 Changes of business environment in Europe offer new business opportunities, encouraging Japanese companies to further reorganize their business strategies in the region. One can sense the strong political will and enthusiasm for restructuring efforts required by the 2004 enlargement in statements such as that of European Commission Vice-President Günter Verheugen: "This is not the first time カジノシークレット銀行出金U has expanded, but the scope of the last enlargement is unprecedented in the history of カジノシークレット銀行出金U or EC. It has strategic importance." ^#3 カジノシークレット銀行出金nlargement is not only a symbol of カジノシークレット銀行出金nd of division of Europe in the Cold War, but also an impressive reality that a new Europe has been born. The new members, who are "a breath of fresh air blowing through カジノシークレット銀行出金U," ^#4 have been vigorously undertaking drastic institutional reforms to realize its accession to カジノシークレット銀行出金U, believing it leads to their countries' further economic development. Their expectation for カジノシークレット銀行出金U membership is reflected in such statements as "the accession to カジノシークレット銀行出金U has increased our country's potential," ^#5 and "the membership means an opportunity for further economic growth of our country." ^#6

Significance of enlargement, and creation of new business opportunities

Japanese companies have conducted various types of business in Europe over the years. They must now respond to カジノシークレット銀行出金limination of business boundaries between Eastern and Western Europe by developing comprehensive business strategies that regard all of Europe as a single market.

Japanese manufacturing related bases in Central and Eastern Europe increased in number from 15 in 1994 to 160 in 2004. ^#7 The countries newly admitted to カジノシークレット銀行出金U have become more than just manufacturing bases — they support the pan-European business activities of Japanese companies, from parts procurement and sales to research and development. As such substantial business partners, the new EU members have rapidly grown in importance for Japanese companies.

Further enlargement

The Accession Treaty with Bulgaria and Romania have already been signed and preparations for their entry into カジノシークレット銀行出金U have been moving forward, so it is only a matter of time before カジノシークレット銀行出金U expands for the sixth time. Negotiations for カジノシークレット銀行出金U membership of Turkey and Croatia have also begun. In the case of Turkey's accession, there exist substantial differences of opinions, but statements such as that of Turkish Prime Minister Erdogan that "we will continue to work hard as before in anticipation of our entry into カジノシークレット銀行出金U" ^#8 show a firm resolve of the country. Japanese business community hopes that Turkey will be admitted to カジノシークレット銀行出金U without delay. EU cohesiveness and strength have been enhanced by respect for diversity of its member countries. Turkey's accession will make カジノシークレット銀行出金U even more attractive as a business partner. Some of former Yugoslavia countries have not started accession talk with カジノシークレット銀行出金U and the admission of former Soviet Union states has not been discussed. Market transparency and predictability in the region are expected to increase in the process of discussions of their membership.

On another front, member countries of カジノシークレット銀行出金uropean Free Trade Association (EFTA) have been developing economic ties to カジノシークレット銀行出金U within a loose form of market integration. Japan has maintained good relations with カジノシークレット銀行出金FTA members and cooperates with them in the WTO. カジノシークレット銀行出金FTA countries enjoy a high level of scientific and industrial technology that they use for advanced purposes. It is indispensable for Japan to pursue policy dialogues with the countries.

(2) EU Deepening

Having achieved this historic enlargement, カジノシークレット銀行出金U must now substantially reform its rules governing decision-making processes and budgeting systems, in order to ensure effective integration of its 25 members and maintain and strengthen international competitiveness. It is true that the institutional reforms have recently made slow progress, but it should be remembered that some areas have seen remarkable success in its integration history, especially the adoption of a single currency, カジノシークレット銀行出金uro - the success of which was once widely doubted. It would therefore be unwise to remain pessimistic about the reform efforts just because of the current standstill. The Japanese business community is extremely interested in how カジノシークレット銀行出金U's restructuring policies unfold in the future.

カジノシークレット銀行出金uropean Constitution

The Treaty establishing a Constitution for Europe is expected to form the basis on which カジノシークレット銀行出金nlarged EU of 25 members will be managed more effectively and efficiently to play more important role in the international community. However, it has become uncertain when the treaty will take effect. It was rejected in French and Dutch national referenda and several countries have suspended the procedure of the ratification. These circumstances indicate that カジノシークレット銀行出金U's integration may not proceed in a straight line. It is predicted that discussions among member states regarding the treaty will be reopened. It is hoped that the treaty will come into effect soon.

EU 2007 — 2013 budget

Economic disparities among the members of カジノシークレット銀行出金U exist. カジノシークレット銀行出金U has so far undertaken a number of disparity-reduction programs and has made budgetary redistributions. カジノシークレット銀行出金U enlargement in 2004 has not changed the situation. On the contrary, the increase of the members into 25 has put the current budgeting system at the crossword.

The member countries have already implemented substantial financial reforms, cutting unnecessary spending and prioritizing the allocation of a large portion of funds to areas with a high expected financial return such as R&D. カジノシークレット銀行出金stablishment of "2007-2013 Financial Perspectives" is an extremely important milestone required to deepen EU integration. It is worth while to notice how appropriate measures for subsidies to the members will be determined based upon the mid-term budget because it has great influence on the member states' policy on business environment improvement such as building and implementing of foreign direct investment introduction measures.

The single currency

The distribution of Euro banknote and coins as a single European currency began in 2002, and カジノシークレット銀行出金uro now holds its own as an international currency. It has become common for non-European countries to hold euro-denominated foreign reserves and issue euro-denominated bonds. カジノシークレット銀行出金uro is now second only to the American dollar as a pivotal international currency, and has become instrumental in promoting corporate operations because it eliminates exchange risks and reduces business costs. For these reasons, it is hoped that EU member countries that have not already adopted カジノシークレット銀行出金uro will do so in the near future.

3. Issues Needing Resolution To Promote Closer Japan-Europe Economic Ties

(1) EU Directives and Laws of Member States

The promotion of EU integration has included efforts to establish an EU legal order that satisfies conditions under which カジノシークレット銀行出金U exercises authority, especially the principles of subsidiality ^#9 and proportionality. ^#10 EU law provides for a uniform, stable, politically independent legal environment throughout カジノシークレット銀行出金U region. This encourages カジノシークレット銀行出金limination of unnecessary regulations within member countries. Therefore, development of an EU legal order is basically a good thing as it will promote the business activities of companies based inside and outside カジノシークレット銀行出金U. However, in cases where EU law strongly impacts on business activities within カジノシークレット銀行出金U, it is important that the opinions of companies within and without カジノシークレット銀行出金U are carefully heard and reflected during the process leading toward the adoption of legislation, and that カジノシークレット銀行出金conomic effects of such legislation are carefully considered. One good example of this is the Registration, Evaluation and Authorization of Chemicals (REACH), discussed below. Various considerations are required during the process leading up to its implementation.

On the other hand, when EU law is not adequately reflected in laws of member countries, or where the relationship between the two is ambiguous, business operations can be subjected to additional costs, and this could hamper the promotion of business ties between Japan and Europe. One example is levy system ^#11 in カジノシークレット銀行出金U region. カジノシークレット銀行出金U Copyright Directive (EUCD) calls for introduction of a method for calculating losses from copyright infringement in the form of private copying and use as well as the study of copyright protection technology (Technological Protection Measures, or TPM), but the copyright laws of many member countries do not reflect the Directive's provisions. It is hoped that EU member states will modify their domestic systems to appropriately reflect カジノシークレット銀行出金UCD.

The Societas Europaea (SE) system was enacted in 2004 to promote borderless corporate reorganization at カジノシークレット銀行出金U level. Under the SE system, companies incorporated outside カジノシークレット銀行出金U can establish business entities inside カジノシークレット銀行出金U under the same rules, and this is expected to bring significant reductions in their costs. ^#12 Implementation of the SE System was welcomed in Japan because it is expected to promote Japan-Europe economic ties. It is hoped that corporate tax system will be coordinated at カジノシークレット銀行出金U level in the future.

(2) Environmental Policies

Economic growth achieved without environmental destruction is an important goal for the international community. Since 1997, Japanese business community has been steadily advancing the goals of the Keidanren Voluntary Action Plan on カジノシークレット銀行出金nvironment, ^#13 and has enjoyed considerable success promoting measures to alleviate global warming. Both Japan and Europe possess advanced environmental conservation technology and share a basic awareness of the importance of recycling, so they are well suited to play a leading role working together for resolution of environmental deterioration, a global issue.

カジノシークレット銀行出金U has achieved progress in environmental protection measures, building on the First Environmental Action Programme that began in 1973. The Sixth Environmental Action Programme, adopted in 2002 designated climate change as one of four central areas to be tackled. If environmental regulations are coordinated at カジノシークレット銀行出金U level, this would eliminate the redundancies now inherent in the multitude of national regulations, and this in turn would remove an additional cost burden from businesses. The role of カジノシークレット銀行出金uropean Commission in formulating environmental policies common to all member countries will therefore become increasingly important.

In this regard, the Registration, Evaluation and Authorization of Chemicals (REACH) ^#14 proposed by カジノシークレット銀行出金uropean Commission would impose an excessive burden on the business community, and could restrict the import of some products. Business communities inside and outside カジノシークレット銀行出金U have therefore expressed great concern about REACH being implemented. It is forecasted that the directive will be passed in 2006 after receiving some amendments. However, a number of the current bill's provisions are stricter than カジノシークレット銀行出金uropean Commission's original proposal, and there are still trade-restrictive provisions regarding the registration of chemical substances contained in imported products. All interested parties need to monitor developments to ensure that environmental protection measures do not end up discriminating between entities based inside and outside カジノシークレット銀行出金U.

The intention of the Directive on Waste Electrical and Electronic Equipment (WEEE) is to increase the recycling of such waste. However, its applicability with regard to some specified products is unclear, ^#15 and procedures that will make Directive implementation feasible should be adopted. In addition, some countries are considering the introduction of systems that would make it difficult for companies to reduce the costs involved in recovering recyclable waste. Some flexibility in recycling systems is needed so that greater competition can be introduced in the recycling business.

Manufacturers have been developing programs to supply safer products that meet the requirements of the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive, which comes into effect in July 2006. However, this Directive should be implemented in a way that does not cause disruptions.

(3) Trade Barriers

Since agreement achieved during the WTO Uruguay Round of negotiations, tariffs have taken a downward path in much of the world, and this has substantially promoted global commercial operations. This type of trade liberalization benefits every country and region, and both Japan and Europe are leaders in promoting liberalization of trade and investment.

However, カジノシークレット銀行出金U still maintains tariffs on major industrial products that are higher than in other developed parts of the world (for example: electric appliances, as high as 14%; ^#16 trucks, 22%; passenger cars, 10%). Audiovisual equipment is an especially useful tool for promoting opportunities in education, culture and computerization, and when one considers the fact that tariffs on IT devices have been eliminated, it would be appropriate to also eliminate tariffs on audiovisual equipment. カジノシークレット銀行出金 supports multilateral efforts both by governments and business representatives to eliminate or harmonize tariffs for specific sectors in Non Agricultural Market Access (NAMA) negotiations in the WTO Doha Development Agenda (DDA). カジノシークレット銀行出金 calls for the tariff reduction through such sectoral approaches in the NAMA.

Digital multifunctional machines and multifunctional liquid crystal display monitors are treated as high tariff items under a classification system that is hard to say rational. Tariff classifications should follow international standards. Technological innovations, such as the fusion of the broadcasting and telecommunications sectors, promote the continual development of products with new capabilities, and one result is that tariff clarification issues may become even more numerous in the future. カジノシークレット銀行出金 believes that the EU should abolish arbitrary classifications and classify items in a manner that more readily promotes trade liberalization. The EU is an active participant in the Information Technology Agreement (ITA), one purpose of which is to eliminate tariffs on IT products, but its imposition of tariffs on multifunctional devices, which are IT products, is contrary to the fundamental thrust of the ITA.

(4) International Financial Reporting Standards (IFRS)

With カジノシークレット銀行出金U's adoption of International Financial Reporting Standards (IFRS), foreign companies listed on EU security markets will be required to prepare their financial statements in accordance with IFRS or an equivalent standard after January 2007. Accordingly, strong concerns are raised over whether European Commission will accept financial statements with Japanese accounting standards.

Japanese accounting standards have already been raised to a level that compares favorably with IFRS. However, if technical advice by the Committee of European Securities Regulators (CESR) in July 2005 is followed, additional disclosures will be required to certain standards. Considerable cost would be needed in preparing the additional data, and for this reason, many Japanese companies have already been showing their intention to withdraw from カジノシークレット銀行出金U market. For the sake of invigorating capital markets in カジノシークレット銀行出金U region, we submit that カジノシークレット銀行出金U should deem Japanese accounting standards as equivalent to IFRS.

(5) Competition Policy

As cross-border business activities gain energy both inside and outside カジノシークレット銀行出金U, EU competition policy on European business is extending its influence. カジノシークレット銀行出金U made considerable amendments to its competition law in May 2004, and カジノシークレット銀行出金uropean Commission has begun basing its decisions and judgments on the amended law. ^#17

The European Commission also applies EU competition law outside the EU in cases where extraterritorial business activities have effects inside the EU (so called Extraterritorial Application). Under these circumstances, there are even cases where, EU merger regulations are applied when a Japanese company acquires a company outside the EU. When such regulations are applied to transactions outside the EU, カジノシークレット銀行出金 believes that transparency in the process of the EU decision making and rationality of the application should be ensured.

(6) Labor Market Flexibility

Good labor-management relations are essential for healthy corporate operations, and Japanese companies do their best to foster harmonious relations wherever they are located, including of course Europe.

Each EU member country basically has the discretionary power to apply its own labor and hiring policies that evolved under cultural and historical influences specific to that country. カジノシークレット銀行出金 believes that EU member countries with stricter labor and employment policies ^#18 should promote more flexibility in their labor markets, as this would foster a more favorable investment environment.

4. カジノシークレット銀行出金 New Stage in Japan-Europe Economic Ties

(1) Bringing the Japanese and European markets closer together

Japan-Europe economic relations have surmounted the friction and opposition that tended to appear from the 1970s to カジノシークレット銀行出金arly 1990s. Today, Japan-Europe economic relations are marked by collaboration and coordination. Care must be taken to ensure these favorable relations do not lead to a state of inertia and deteriorate into mutual disinterest. There is therefore a need to further expand opportunities for exchange of people. The business communities of Japan and カジノシークレット銀行出金U should expand mutual understanding through private-sector diplomacy and encouraging their participation in the international rules formulation process. These objectives can be achieved through various types of cooperation leading to closer and stronger Japan-Europe economic ties that contribute significantly to global development.

For example, the 2001 Agreement on Mutual Recognition between Japan and カジノシークレット銀行出金uropean Community (MRA) has expanded trade and reduced corporate costs. This type of policy initiative brings the Japanese and European markets closer together, and is therefore profitable for the business communities of both sides at this time of regulatory reform. Japan and Europe should strive to realize mutual recognition covering more than just the four areas envisioned in the 2001 MRA, ^#19 including qualification recognition.

(2) Coordination and cooperation to address global issues

Japan and Europe both enjoy highly developed socioeconomic systems and share values promoting a market-oriented society. They are therefore well positioned to establish a strong partnership in the international community, at a time when many global issues must be tackled.

During the DDA negotiations, Japan and Europe have frequently adopted the same stance in many areas, including agricultural trade, trade in services, and anti-dumping measures. Statements such as, "Japan and Europe should cooperate to promote the new round" ^#20 underscore the possibilities for strategic coordination.

As leaders in environmental conservation, Japan and Europe should increase their level of coordination in areas ranging from development of a framework for global warming prevention to initiatives tackling environmental pollution and promoting energy efficiency.

In response to growing debate over corporate social responsibility (CSR), the International Organization for Standardization has begun examining international standards for social responsibility (SR). ^#21 カジノシークレット銀行出金U treats CSR as a priority policy item and has issued a number of reports promoting CSR. ^#22 These reports have even influenced how CSR should be regarded in Japan. Since ISO standardization has significant impact on the activities of companies, it is important for Japan and Europe to coordinate their efforts and collaborate with one another when examining standards, and to take a lead in the standardization process.

Infringement of intellectual property rights has become a serious problem in recent years. Japan and Europe possess many intellectual assets, and this too points to the need for cooperation in assessing actual damage, making improvements, and developing effective countermeasures that draw on their mutual expertise.

With economic globalization on the rise, Japan and Europe should strengthen coordination to help ensure that the dynamism of emerging economies, particularly the BRIC countries (Brazil, Russia, India and China), is linked to further development of global economy.

Japan and Europe both face declining birthrates and aging populations, and it would be effective for each to learn from the strong points and experiences of the other's social systems, in order to develop suitable measures to deal with these challenges. Some initiatives are already capitalizing on the technical expertise and know-how of Japan and Europe, ^#23 with the aim of "working together to resolve the welfare problems that confront us." ^#24

(3) Multiple approaches to strengthen the Japan-Europe relations

The governments of Japan and カジノシークレット銀行出金U regularly hold policy dialogues, including Japan-EU summits and Japan-EU economic ministers' meetings, as part of the Decade of Japan-Europe Cooperation program that began in 2001. Now that the program has reached its midway point, the spotlight is on future actions to be taken under various initiatives. Of particular note is the Japan-European Union Regulatory Reform Dialogue, which is part of the critical process required to dismantle trade barriers still existing between Japan and カジノシークレット銀行出金U. It is hoped that the Dialogue will generate even more beneficial results.

It would be desirable to simultaneously pursue several approaches that strengthen and expand Japan-Europe economic relations. Because the approaches are multiple, they would bring synergistic benefits.

The first approach is to promote more bilateral exchanges. カジノシークレット銀行出金 intends to appropriately coordinate some of its activities with government programs, and will strive to improve the business environment for private industry by dispatching policy dialogue missions and by meeting with key figures in Europe. It will lead to promoting mutual understanding between Japan and Europe and reinforcing the economic partnership.

Japan has pursued Economic Partnership Agreement (EPA) negotiations primarily in the Asia-Pacific region, but is also considering negotiating EPAs with countries in other regions and will avail itself of the option of starting negotiations with developed countries. As part of this trend, some EFTA countries have shown an interest in establishing EPAs with Japan, as indicated by statements such as "bilateral negotiations will contribute to カジノシークレット銀行出金stablishment of a tailor-made, dynamic framework." ^#25 EPAs with such countries could become an effective tool for fastening Japan-Europe economic ties. カジノシークレット銀行出金 believes that Japan should continue to work hard to strengthen bilateral economic relations with individual European countries, and that EPA negotiations with non-EU member countries can be included in these efforts, since EPAs complement endeavors to liberalize trade and investment through the WTO.

The second approach is to deepen Japan-Europe collaboration at multiple levels. カジノシークレット銀行出金 has worked on various parties concerned toward the early conclusion of DDA. For that purpose, the organization has cooperated with the Union of Industrial and Employers' Confederations of Europe (UNICE) in dispatching joint missions and issuing joint declarations. カジノシークレット銀行出金 has also combined forces with major business organizations in individual European countries to urge the Business and Industry Advisory Committee to the OECD (BIAC) to ensure that private sector's views are fully reflected in OECD decisions. The business communities of both Japan and Europe should make more efforts of this type and take the initiative in making rules on important areas of mutual interest to both Japan and Europe, such as intellectual property rights and innovation in multifaceted negotiations.

A third approach is to strive for greater Japan-Europe coordination on a regional basis. Whereas the Asia-Europe Meeting (ASEM) functions as a forum for the governments of 28 Asian and European countries, the Asia-Europe Business Forum (AEBF) was established to make the ASEM leaders a policy proposition that reflects the viewpoints of the private sector and urge them to implement the policy. The business communities of Japan and Europe can further strengthen relations between Asia and Europe by joining forces to energize AEBF activities. Stronger Japan-EU ties are the goal of カジノシークレット銀行出金's cooperative efforts to ensure the success of the Helsinki Meeting ^#26 of the AEBF, which will soon celebrate its 10th anniversary.

As this opinion paper has stressed, Japan and Europe can further promote coordination and cooperation through bilateral, multinational and regional frameworks. By fastening their ties, Japan and Europe can contribute even more to global stability and prosperity. At a time when カジノシークレット銀行出金U has entered a new stage of its integration process, and when economic conditions in Japan and Europe are entering a new phase, a deeper level of mutual understanding and partnership between Japan and Europe is required to eliminate obstacles hindering business and to take multiple approaches toward the resolution of global issues.

カジノ シークレット 銀行 出 金 Closer and Stronger Economic Partnership between Japan and Europe

- カジノ シークレット 銀行 出 金's Observation and Views on European Integration and the Japan-Europe Business Relations -

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