EBC Board of Governors' Meeting

Friday, September 21, 2007, Europa House 1st Floor Meeting Room, 08:30 a.m.-10:30 a.m.

Attendees: P. van den Heuvel, R. Collasse, A. Murray, C. Mayali, S. Ginoux, R. Scherpenhuijsen-Rom; R. Kracklauer; R. Mazzucco; L. Zukauskaite; D. Delgorge;
A. Carbajo; J. Lawden; A. Frauenknecht; E. Ullner; M. Lachaussee; J-F Minier; J-I Olsen; H. Porat; M. Theoval; R. Mason; I. Pulford, C. Eklund, H-P Musahl

Regrets: J. Edberg, P. Suszycki-Tanaka, G. Zorn, V. Trelut, P. Van Oppen, P. Thewliss M. Hoffmann, D. Steiner, P. Valery, J-P Oulevey, M. Makinen, H. Tempel D. Buckley T. Varlid, J. Bertrand

1. COMMENTS FROM THE EC DELEGATION

1. Peter van den Heuvel, Head of Trade, EU Delegation reported that the EU Commission was paying close attention to current political developments in Japan and the recent resignation of Prime Minister Abe. The change in leadership may not have an impact in the long term, but there may be consequences for the next EU-Japan Summit and/or the series of Ministerial G-8 Meetings leading up to the G-8 Summit. The Commission is concerned that the new Prime Minister may be less committed to regulatory reform dialogue, which could impact on the Regulatory Reform Dialogue.
   
2. The EU Commission wondered whether the current exchange rate was creating problems for European exporters. Although it has slightly improved, the low value of the yen against the Euro is still an issue for businesses and trade.
3. The next EU-Japan Summit will probably be held on April 21, 2008 in Japan.
4. Ambassador Richardson recently attended the biannual meeting of Heads of all European Commission Delegations. The Ambassador reported that the new EU constitutional treaty is expected to be approved at the next informal European Council meeting in Portugal in October. The ratification process will begin soon thereafter and hopefully conclude within 2 years before the next European Parliament election.
5. The OECD released its first report on the European Union. In the report, the OECD describes current EU trade and investment policies as "protectionist". This needs to be taken on board in the discussions on a possible economic integration agreement.

2. INTRODUCTION OF NEW STAFF MEMBER

EBC Chairman Richard Collasse introduced new staff member Clemence Mayali who is working as Executive Policy Officer 4 days a week replacing both Kathy Harris and Sarah Mayo.

3. REPORT FROM THE CHAIRMAN

1. Brief report on BDRT: At the EU-Japan Business Dialogue Roundtable (EJBDRT), the meeting adopted the recommendation to call on the authorities for an EU-Japan Economic Integration Agreement (EIA) submitted by Working Party 1, led on the EU side by Mr. Richard Collasse (EBC Chairman). The proposal for an EIA was very well received by both the EU and Japanese sides of the roundtable.
2. Agreed follow-up on EIA from BDRT: Working Party 1 of the BRDT was then tasked with the follow-up to the recommendation - namely, ensuring that an EU-Japan EIA Taskforce be set up to prepare a more detailed study report to present to the EJBDRT and the EU-Japan political summit scheduled tentatively for April 2008 before the G8 summit. It was further decided that a small Joint EU-Japan EIA Taskforce would be established and would meet for the first time at the earliest in November and bimonthly thereafter with the goal of producing a study report by mid-2008.
3. Meeting with Keidanren (re EIA): On September 4, the EBC led by Chairman Richard Collasse met with Keidanren. At the meeting, the Keidanren raised the issue of how tariffs should be addressed and/or included in a potential economic agreement. The EBC Chairman explained to Mr. Yonekura, Vice-Chairman of Keidanren, that if tariffs were the cornerstone of an EIA proposal, the EU Commission would be highly likely to reject the proposal. Keindanren still views tariffs as their key issue, but seemed to agree that the focus of the agreement should be on other areas. Keidanren members at the meeting used the term EIA (in Japanese) throughout the meeting, marking a shift from their prior use of the term, EPA.
4. Investment Group Lunch: On September 5, the EBC Secretariat attended the bimonthly Investment Group meeting with representatives of Japanese government offices. At the lunch, METI and MOFA confirmed their intent to support and proactively promote an economic integration agreement between the EU and Japan. In pursuit of this goal, the METI has outsourced a large research study to the Nomura Institute, and JETRO has been asked to serve as the secretariat for the Japanese side.
5. Dinner Meeting with Automobile Committee: On September 6, the EBC attended a dinner meeting held by the Automobile Committee. The EBC Chairman reported that the meeting was useful. Members of the Committee expressed their concern with the EIA and its potential to eliminate auto tariffs, but also explained that they understood the wider and far reaching benefits of the trade agreement.
6. EU EIA Expert Committee Meeting: On September 14, the EIA EU Expert committee held their first meeting to discuss the function of the EIA taskforce and generate a brainstorming session on the contents of the agreement. Chairman Collasse encouraged the Chambers of Commerce to put their strength behind this agreement and to reach out to their respective members for their input. The EBC is serving as the secretariat for the EU Expert Committee in Japan and will reach out to a variety of organizations and companies, including BDRT members, Eucomed, Eurochambres, BusinessEurope, etc.
7. Meeting with Toshiba and JETRO re EIA: On September 14, following the EU EIA Expert Committee meeting, the EBC met with the Japanese EIA Expert Committee led by Toshiba and JETRO. The discussion focused on clarifying the terms and the process for creating and submitting the industry recommendations from Working Party 1 (a working process chart was prepared subsequent to the EOB meeting and is attached for your reference). It was agreed that the EBC and the JETRO/Toshiba group would meet once a month to share information on their activities.
8. Meeting with Ambassador Richardson: On September 20, EBC Chairman and Executive Director held their quarterly meeting with Ambassador Richardson. The meeting was an opportunity for Chairman Collasse to brief the Ambassador on EBC activities and to discuss work so far on the EIA.
9. Meetings with Business Europe and European Commission in Brussels: Chairman Collasse will meet with BusinessEurope and members of the European Commission in Brussels on October 4.
10. Presentation to Member State Ambassadors: The EBC Chairman has been invited by the Ambassador of Portugal to make a presentation at the monthly meeting of Ambassadors to be held on November 8. The presentation will provide an update on EBC activities, specifically the white paper, and the proposed EIA and aims to keep the Ambassadors well informed on the role and function of the EBC.
11. On September 27, the EBC will meet with members of the EC Delegation's Science and Technology section to discuss this sector's priorities for the EIA.

4. REPORT FROM THE EXECUTIVE DIRECTOR

1. Current state of EBC White Paper: The 2007 White paper will be presented in a new format to reflect the new theme of the Economic Integration Agreement. Sponsorship levels for the White Paper is still below target and a reminder asking for additional sponsorships will be sent to members soon. The luncheon Launch for the Paper will be November 21. A formal announcement and invitation will be sent out early in October.
2. ETP promotion results: Promotion results worldwide for the 2007 ETP Program were lower than last year. In Japan, 2 of 5 applicants were selected. There were no applicants from several of the 27 member states, although in France, 5 out of 10 applicants were selected. The Executive Director mentioned that the selection process appeared to be too rigid. Two of the EBC's applicants who were not selected for the interview process, did not meet the criteria exactly but would have received full support from their companies and appeared to be suitable. Consultation on these cases might have proved beneficial. The EBC's view is that there is no shortage of individual candidates, but there seem to be few companies in Japan willing to give up staff for the programme - the difficulty is findings candidates whose companies are willing to sponsor them.
3. New Logistics and Freight Committee: On July 29, DHL, TNT, and Panalpina met to form a new committee - Logistics & Freight Committee. The committee will address regulatory barriers and outdated restrictions challenging foreign freight companies. Major issues are high costs and inadequate infrastructure at international airports and customs clearances procedures.
4. Eucomed visits: On July 6, 7 and 17, the EBC arranged an extensive programme of meetings for the EUCOMED Secretary General and Senior Board Member. The programme included visits to the Ministry of Health Labour and Welfare (MHLW), the Japan Federation of Medical Device Associations (JFMDA), the Japan Medical Association (JMA), and the Pharmaceutical & Medical Devices Agency (PMDA) as well as to politicians and the Delegation of the European Commission to Japan. EUCO MED has agreed to join the EIA Taskforce and is keen on an agreement that establishes mutual acceptance of standards on medical devices.
5. British Computer Society: On August 9, the Executive Director met with Simon Adams, a representative of the British Computer Society (BCS) to discuss the possibility of the EBC hosting the Japanese secretariat of the BCS. The BCS administers a Chartered IT professional (CHIP) accreditation program. Japanese customers have expressed interest in this certification program, which is already quite extensive throughout Asia. BCS have not yet made a decision.
6. Meeting with Japan Business Council of Europe: On August 22, the EBC received a visit from Hiratsuka-san of the Japan Business Council of Europe (JBCE) to discuss the EIA. Thus far the JBCE has conducted research and outreach with Japanese businesses in Europe. The EBC Executive Director and Policy Director agreed to continue communications on activities regarding EIA.
7. Meeting with Nomura Research Institute: On August 23, the EBC also received a visit from two members of the Nomura Research Institute. Nomura Institute has been engaged by METI to conduct a research on the potential benefits of an EIA for Japan.
8. Meeting with Osaka Chamber: The Osaka Chamber of Commerce has already followed up the May visit of the EOB to Osaka by expressing their intent to schedule a meeting for next year. Their feedback to the May meeting was very positive. A representative will visit today (September 21) to discuss the timing for next year's visit.
9. Executive Director, Alison Murray made a presentation at a seminar on "Women in Government" organized by the UK Embassy and held at the EU Delegation on September 19. Japanese female government personnel and foreign female embassy staff attended.

5. REPORT FROM THE COMMITTEE CHAIRMEN

1. Human Resources: Chairman, Richard Mason
   The MOJ held a briefing last week to announce new immigration procedures expected to begin on November 30 of this year. MOJ has decided that there will be only one line for both foreigners with reentry permits and those without permits. This will be processed through a new biometric photo fingerprint wicket system. Chairman Collasse suggested/urged that the EBC send a letter to the MOJ with copies to the Embassies, Jetro, MOFA and METI asking that the foreigners with residence and re-entry permits be permitted to enter Japan separately from tourists. (Post-meeting update: EBC has confirmed with the MOJ that foreigners with reentry permits will not be able to use the Japanese national lines any more, but MOJ plans to have quite separate lines for foreigners residing in Japan (i.e. reentry permit holders) and foreign tourists, which may improve the situation. A letter requiring clarification is currently being prepared.)
2. Aeronautics: Chairman, Stephane Ginoux
   The chairman reported that some member companies may have difficulties with stricter regulations on exports of carbon fibers imposed by METI. Although it not for certain, at this time, it seems that the export regulations are being applied only to European companies. If this is in fact the case, then it is discrimination and should be a case for the WTO. Mergers and acquisitions limitations continue to be a problem for the aeronautics business here in Japan. He further added that the EIA would be very important for their industry.
3. Telecommunications: Chairman, Ian Pulford
   The Telecommunications Carriers Committee has been involved in drafting and sending a letter to the Cabinet. It will work with the Telecommunications Equipment Committee to address upcoming issues and challenges.
4. Food: Chairman, Duco Delgorge
   The Chairman reported that there is an increase in members and participation in the Food Committee. They continue to have issues with tariffs as well as food additives, testing of food products, beef, market for organic foods, maximum residue levels, and a new issue: presence of lysteria. Regarding food additives, of 46 additives that were fast-tracked for approval in 2002, only 7 have actually been approved. The Chairman confirmed that he has conducted an outreach to members of the Committee in regards to the EIA.
5. Legal Services: Chairman, James Lawden
   Revised regulations under the bengoshi laws limit the ability of foreign law firms to have more one branch. In contrast, the EU has adopted a limited liability structure, but this cannot be recognized in Japan under the current law. Furthermore this restrictive approach continues to be applied to foreign lawyers' applications to the Bar in Japan.
6. Banking: Chairman, Jean-Francois Minier
   The Committee continues to take part in the debate on the revision of firewall restrictions separating securities and banking business. The committee has submitted public comments and participated in public hearings followed by visits to the FSA. An additional visit to the FSA is planned for next week. The Committee has included recommendations on these issues in the White Paper.

6. FUNDING MATTERS

1. The Executive Director explained that the 2008 yearly stakeholder fees presented in a spreadsheet reflect the number of respective chamber members and their corresponding fees. Erik Ullner, EBC Treasurer, noted that by comparison with the 2007 table, the number of members within some chambers of commerce as well as the relevant chamber fees have declined.
2. The draft budget spreadsheet was presented and provided a comparison of the funding with 2007 and 2006. The EBC Treasurer advised that approval from the Chambers for next year's budget must be received by November 30 - after the BoG minutes are distributed, the 2008 stakeholder fee table and
   the draft 2008 budget will distributed for stakeholder review. Written acceptance (or otherwise) should be received by e-mail at the EBC Secretariat by November 30 in time for the December 6 end-of-year meeting.
3. Beyond stakeholder and committee membership fees, major sources of funding expected for 2008 are:
   1. Eurochambres contract (ETP): The EBC continues to coordinate recruitment for the ETP executive recruitment program.
   2. Eurochambres contract (Gateway): If Eurochambres is selected to act as the operator for Lots 1 and 2 of the new EU Gateway program, then a liaison office will be established in Japan. EBC will provide the office space and the personnel for the coordination activities required in Japan. This arrangement is expected to generate around an additional 5,000,000 in revenue for the EBC.
   3. European Wood: payment for office space and services.
   4. Eucomed: annual fee for arranging 3-4 visits per annum to Tokyo.
   5. Consulting: the EBC will continue with the ad hoc consulting for trade lobbying activities that are outside the scope of already established committees.
   6. British Computer Society (BCS): The EBC is still awaiting a decision in regards to the proposal by BCS to establish operations in Japan. If the proposal is approved, the EBC will provide office space and personnel for BCS, which would bring in an additional 2,000,000 yen in revenue for the EBC.
   7. The ETPA is currently experiencing a lack of funding and for the time being it is unable to operate a secretariat for the programme, hence the EBC no longer provides office space and services.

7. EOB LIAISON RESPONSIBILITIES

1. The draft list for the EOB committee liaisons is currently in the process of being confirmed.

8. 5th DAIMLERCHRYSLER CUP REPORT:

The preparations for this year's DaimlerChrysler cup (September 28) are well underway. This year, the organizers have decided that some proceeds of the event should go towards a charity and have selected the Children's YMCA as the recipient.

9. ANY OTHER BUSINESS

None