obstacles & barriers to free trade (japan & eu)
TRANSCRIPT
JAPANEUFTA
Obstacles & Barriers to Free TradeJapan & EU Kenwin Maung
Waseda University
Special thanks to Dr. Albrecht Rothacher, Prof. Frederik Ponjaert & Pascal Lottaz
ThemeDEVELOPMENT INNOVATION
THIRD PILLAR80% COVERAGE
GDP 2.2% GROWTH
Why EU & Japan?
10%Japan’s
Perspective:
Total Trade of Japan{3rd}
22.9%Outward Japanese FDI
{2nd}
39.4%Inward FDI to Japan
{1st}
2013
3.2%Total Trade of EU
{7th in the world/ 2nd in Asia}
Why EU & Japan?
2012
EU’s Perspective:
0.6%Outward European
FDI1.3%
Inward FDI to EU
FTARd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Rd 8 Rd 9 Rd 10
Rd 11
Rd 12
Rd 13
Rd 14
Rd 15 Rd 16
EU-Korea Mar 07
Jul07
Sep 07
Oct 07
Nov 07
Jan08
May 08
Mar 09
Jul09
EU-Singapor
eMar 10
Jun10
Sep 10
Nov 10
Jan11
Mar 11
Jun11
Oct 11
Jan12
Mar12
Jul12
EU-Canada
Oct 09
Jan10
Apr 10
Jul10
Oct 10
Jan11
Apr 11
Jul11
Oct 11
Mar12
Apr12
Sep12
Oct13
EU-Japan Apr 13
Jun13
Oct 13
Jan14
Apr 14
Jul14
Oct 14
Dec 14
Feb 15
Apr15
Jul15 …
JPN-Vietnam
Jan 07
Mar 07
Jun07
Aug 07
Oct 07
Mar 08
Apr 08
Aug 08
Sep 08
JPN-Swiss Mar 07
May 07
Jul07
Oct 07
Dec 07
Feb 08
May 08
Jun08
Sep 08
JPN-India Jan 07
Apr 07
Jun07
Aug 07
Jan08
Apr 08
May 08
Jul08
Sep 08
Oct08
Jan09
Sep09
Apr10
Sep10
JPN-Australia
Apr 07
Aug 07
Oct 07
Feb 08
Apr 08
Jul08
Oct 08
Mar 09
Jul09
Nov09
Apr10
Jan11
Dec11
Feb12
Apr12
Jun12
JEUFTA in Perspective
Rhythm of recent European and Japanese FTA negotiations from Ponjaert (2015) updated for the progress on EU-Japan negotiations
FTA Priorities: ASEAN & South Korea
“Japan was almost absent in the Global Europe strategy”
(Shu, 2015)
Worsening Trade Deficits for Europe
Increased inflow of FDI from Japan
Combative Negotiations
Failed Trade Negotiations
Exogenous Prompts
Lost of Japanese
Momentum*
Rise of China
2011 Tohoku
Earthquake
Conclusion of EU-South Korea FTA in
2009
Although Japan may be eager “for a [trade] deal by the end of [2015]”, the EU believes that “if this deal is worth doing, it [is] worth doing right” and “if it takes a bit longer to create that good product”, both the EU and Japan “should take that time”
(Cecilia Malmström, May 2015)
Domestic Vested Interest
Low Political Salience
Disagreement over Values
Vested Interests …
30,000 LobbyistsCorporate
PressuresCarmakers, railway, processed foods
Incumbent partyTraditional
ConstituenciesAgriculture
Can ChangeEU-Japan centre for Industrial Cooperation
Japanese companies: Strong supporters of JEUFTA
Non-Tariff Barriers no longer a Taboo
Expectations Deficit
EXPECTATIONS CAPABILITIES
Expectation Deficit
Asian perception of the EU as too “distant and ineffectual”(Wong, 2012)
(Tsuruoka, 2008)
Low Political Salience
Human Resources
PolicyExpertise
Time
Socialisation mechanisms are lost(Ponjaert, 2015)
Can TPP help JEUFTA?
POSSIBLE CHALLENGING
No EU Values, No FTA?
Strategic Partnership Agreement (political agreement)
Human Rights, WMDs, Environment etc.
Horizontal Issue Linkage
Principled link Political link Legal link
Death Penalty Whaling
“Member States and the Commission [to], in all trade discussions with Japan, support and promote initiatives aimed at promoting human rights and
social and environmental standards””(EP resolution, 11 May 2011)
JAPANEUFTA
Low Political SalienceVested InterestDifferent Values
Thank you for listening
ReferencesAmnesty International. (2014). Death sentences and executions in 2013. Retrieved from https://www.amnesty.org/en/documents/act50/001/2014/en/
De Gucht, K. (2013, April 24). Answer given by Mr De Gucht on behalf of the commission. Retrieved from http://www.europarl.europa.eu/RegData/questions/reponses_qe/2013/002859/P7_RE(2013)002859_EN.pdf Dobson, H., Gilson, J., Hook, G. D., Hughes, C. W. (2012). Japan’s international relations: Politics, economics and security. London: Routledge. EU-Japan Centre for Industrial Cooperation. (2011, October 18). A personal view on the future of EU-Japan trade relations with prof. Vital Moreira MEP, chairman of the european parliament’s international trade committee. Retrieved from http://www.eu-japan.eu/sites/eu-japan.eu/files/seminar_moreira_18102011_eu.pdf
European Commission. (n.d.). Trade policy with japan. Retrieved from http://ec.europa.eu/trade/policy/countries-and-regions/countries/japan/
European Parliament. (2011, May 11). European parliament resolution of 11 May 2011 on EU-Japan trade relations. Retrieved from http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2011-0225&language=EN
ReferencesEuropean Parliament. (2012, October 25). European parliament resolution of 25 October 2012 on EU trade negotiations with japan. Retrieved from http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2012-398
France, Italy win safeguard clause in EU-Japan trade pact. (2012, November, 30). EurActiv. Retrieved from http://www.euractiv.com/global-europe/france-italy-win-assurances-eu-j-news-516356
Hardy, M. (2013). Growing difficulties and the GATT procedure. In Keck, J., Vanoverbeke, D., & Waldenberger, F. (Eds), EU-Japan relations, 1970-2012: From confrontation to global partnership. London: Routledge.
Johnson, D. T. & Zimring, F. E. (2009). The next frontier: National development, political change, and the death penalty in asia. New York, NY: Oxford University Press.
Kleimann, D. (2015, June). Negotiating in the shadow of TTIP and TPP: The EU-Japan free trade agreement. Retrieved from http://www.gmfus.org/publications/negotiating-shadow
Malmström, C. (2015, May). EU-Japan FTA: Crafting an ambitious deal. Speech presented at the Keidanren. Retrieved from http://trade.ec.europa.eu/doclib/docs/2015/may/tradoc_153488.pdf
ReferencesMinistry of Economy, Trade and Industry. (n.d.). Japan EU EPA. Retrieved from http://www.meti.go.jp/policy/trade_policy/epa/epa/eu/index.html
Ponjaert, F. (2015). The political and institutional significance of an EU-Japan trade and partnership agreement. In Bacon, P., Mayer, H., & Nakamura H. (Eds.), The european union and japan: A new chapter in civilian power cooperation? Surrey: Ashgate Publishing Limited.
Shu, M. (2015). Three balancing acts: The EU’s trade policy towards east asia. In Bacon, P., Mayer, H., & Nakamura H. (Eds.), The european union and japan: A new chapter in civilian power cooperation? Surrey: Ashgate Publishing Limited.
Traynor, I. (2014, May 8) 30,000 lobbyists and counting: Is brussels under corporate sway? The Guardian. Retrieved from http://www.theguardian.com/world/2014/may/08/lobbyists-european-parliament-brussels-corporate
Tsuruoka, M. (2008). Expectations deficit in EU-Japan relations: Why the relationship cannot flourish. Current Politics and Economics of Asia, 17(1), 107-26.
Waldenberger F. (2013). Europe and japan from the common market to the european union. In Keck, J., Vanoverbeke, D., & Waldenberger, F. (Eds), EU-Japan relations, 1970-2012: From confrontation to global partnership. London: Routledge.
Wong, R. (2012). Still in deficit: Perceptions of the EU’s capabilities among foreign policy elites in singapore, indonesia and vietnam. EU External Affairs Review, 2, 34-45.