EBC Meeting Minutes

EBC Combined MEETING, EBC Board of Governors, EBC Executive Operating Board, EBC Committee Chairmen

Tuesday, December 13,  2005; Europa House, 6th Floor, EC Delegation

      

Attendees: R. Collasse, H.E. Ambassador B. Zepter, P.Van Den Heuvel, T. Naecke, A. Murray, J. Edberg, J-F Minier, M. Lachaussee, J. Bertrand, E. Ullner, M. Mino (for S. Ginoux), C. Vellekoop, T. Henriksen, C. Zambotto, R. Mason, M. Hoffmann, R. Kracklauer, K-U. Grathwohl, H. Mueller, A. Ponzetta, C. Halling, A. Lanigan, A. Pockett, P. Gibb, P. Baron, V. Trelut, G. Schlosser, M. Makinen, D. Buckley, C.Goulios、S. Saugnes

Regrets: D. Delgorge, S. Ginoux, P. Sinnaeve, G. Illichmann, H. De Mestier, W. Wagner, M. Arnold

1. COMMENTS FROM THE EC DELEGATION:
Comments by H.E. Ambassador Bernhard Zepter

  1. The 2005 EU-Japan Year of People to People Exchanges is drawing to a close. Despite a small budget, this activity was a success. The Japanese also were active in Europe and altogether there were more than 1,700 meetings and events in both regions.
  2. The EU-Japan regulatory reform dialogue has just taken place. There was a lively discussion on all issues, with emphasis on transparency and predictability. The EC is hopeful that its views be reflected in the revised administrative law to take effect in 2006. Little progress was seen in discussions on Article 821. All of the EU issues are now on the table, but the EC Delegation does not expect major progress. Japan will raise their issues about the EU in Brussels in 2006.
  3. Overall, Japan appears to be preoccupied with China and the EU is not at the top of its agenda. This can also be said of the EU. There is a need to lobby more in Europe on the danger of focusing unduly on China while reducing interest in Japan.
  4. The EU budget is a current issue and hopefully, discussions will conclude successfully in two days. The likely outcome is a more cumbersome procedure with delays in disbursement. The constitution issue is unlikely to be resolved in the short term. The Japanese view EU integration with a sense of amazement and skepticism, but feel it is important to work with the EU. They increasingly look at the EU as an example for their own use in the region.

2. UPDATE FROM THE EBC CHAIRMAN:
Chairman update of recent activities in chronological order (last BoG meeting: September 8)
Distribution of 4-year activity report

  1. R. Collasse and A. Murray met with Ambassador Bernhard Zepter of the Delegation of the European Commission to Japan to brief him on current EBC activities (22 September, 2005)
  2. R. Collasse and A. Murray participated in the 17th lunch briefing meeting (hosted by Somusho) of an "Informal FDI Discussion Group" with Japanese Government officials (MOFA, METI, JETRO, SOMUSHO, DBJ, Keidanren, etc.) to exchange views on promoting FDI in Japan (22 September, 2005)
  3. R. Collasse made a presentation to members of the French Chamber of Commerce and Industry in Japan on the EBC and EBC views on corporate governance and the FDI environment (29 September, 2005)
  4. R. Collasse participated in the meeting of the Healthcare Sector Subcommittee of the Japan Investment Council. Mr. Ohhashi (EFPIA Japan Chairman) and Mr. Kamijo (Chairman, EBC Medical Equipment Committee) (28 October, 2005)
  5. R. Collasse, E, Ullner, G. Schlosser, M. Makinen, and A. Murray attended a lunch hosted by recently arrived Ambassador Julin of Finland to brief him on the EBC (09 November, 2005)
  6. R. Collasse made a presentation to the EU Ambassadors group on the 2005 EBC White Paper (10 November, 2005). He expressed the desire to do this every year.
  7. R. Collasse participated in the annual meeting of the EU Japan Center for Industrial Cooperation's Supervisory Board (15 November, 2005)
  8. The EOB hosted an end-of-year lunch meeting (at Tofu Ukai near Tokyo Tower) with Ambassador Bernhard Zepter and other senior personnel from the Delegation of the European Commission to Japan. The EOB met for an hour before the lunch (18 November, 2005).
  9. The EBC hosted a lunch meeting of the EBC's FDI Committee with the Keizai Doyukai FDI Committee to discuss future cooperation. The Keizai Doyukai FDI Committee is chaired by Mr. Yamanaka, who expressed interest in: 1) having R. Collasse make a presentation on the EBC and the White paper to the Keizai Doyukai in the near future (refer to item 2.13 below), 2) having four such lunch meetings a year, 3) looking at the possibility of producing a joint position paper, 4) developing political contacts through joint visits, and 5) jointly lobbying for the government to appoint an FDI Minister to coordinate the FDI-related policies of the various ministries and agencies. (21 November, 2005)
  10. The EBC launched the year 2005 white paper at the Westin Hotel on 24 November. It was probably the most successful of all the 6 launches held so far. Many European ambassadors were present and there was good media coverage including the Financial Times.
  11. R. Collasse expressed concern about comments during the WP launch by Mr. Kaoru Ishikawa, Director-General MOFA. In his speech he said that the EBC's "greatest rival" (meaning the ACCJ) was not concerned about article 821. The ACCJ (Don Westmore who was present at the launch) discussed this with Ishikawa at the end and prepared a letter signed by both Debbie Howard and Richard Collasse confirming our joint position and this was sent to him the next day. During the presentations by EBC committee chairmen, Ishikawa also repeatedly referred to them as menteurs (liars) and made other disturbing comments, such as Vodafone is encouraging "ore-ore" calls (which are fraudulent). He followed this up with a letter to the Financial Times after they published a good article about our WP. The letter attempted to discredit the EBC and the EBC secretariat prepared a response which was published in the FT today (12/13). (Relevant materials distributed in the meeting).
  12. R. Collasse and A. Murray participated in the 18th lunch briefing meeting (hosted by METI) of an "Informal FDI Discussion Group" with Japanese Government officials (MOFA, METI, JETRO, SOMUSHO, DBJ, Keidanren, etc.) to brief them on the EBC white paper (29 November, 2005)
  13. R.Collasse made a presentation about the EBC and the 2005 White Paper to the Keizai Doyukai as the first activity in a newly crafted collaboration (12 December, 2005)
  14. R. Collasse, J. Edberg and A. Murray will meet later this morning (12/13) with Mr. Yasutaka Nagatomi （Director-General, Regulatory Reform）of the Cabinet Office to present the EBC White Paper (13 December, 2005)

3. REPORT FROM THE EXECUTIVE DIRECTOR:
Update of some selected recent activities and related issues
Distribution of EBC Secretariat report

  1. White Paper funding, production, distribution and launch:- 1) The funding outreach eventually achieved the target of close to 5,550,000 yen thanks to the support of the chambers and proactive assistance of the chamber presidents. 2) There was a hitch in the production as the printer used the English cover template from last year's white paper, which had "European Business Community" and not "Council", even though the file received from us had the correct name. Consequently, 1,400 white papers were reprinted in time for the launch. 3) White papers have now been distributed to the people who placed advance orders and a copy has been sent to every EBC committee member. The distribution process is still underway. 4) Some 270 people attended the white paper launch, including 22 European ambassadors. Media reports were distributed in the meeting.
  2. A. Murray and J. Versantvoort had lunch with the new Netherlands Ambassador (Mr. Alphons Hamer) for EBC briefing (20 September, 2005)
  3. The EBC secretariat arranged for several EBC personnel to join a lunch briefing with Mr. Richard Wright - Director, External Relations Directorate-General (7 October, 2005)
  4. The EBC secretariat arranged for several EBC personnel to join a breakfast meeting with Mr. Heinz Zourek, Acting Director-General, Enterprise Directorate-General (17 October, 2005)
  5. The EBC secretariat arranged for several EBC personnel to join a lunch meeting with Mr. Laurens Brinkhorst, Netherlands Deputy Prime Minister/Minister of Economic Affairs/Minister of Telecommunications (19 October, 2005)
  6. The EBC was visited by the Eurochambres Director of International Affairs, Mr. Dirk Vantyghem. He stated that Eurochambres supports the EBC model with links to the national chambers in Japan and is not in support of a global network of EBCs being managed by the European Commission (many of which have recently been converting to EU Chambers of Commerce) (21 October, 2005)
  7. The EBC was visited by Cabinet Office lawyers requesting feedback on the translation of main Japanese laws into English. The Secretariat subsequently submitted public comment and a list of laws (provided through EBC Secretariat communication with committee chairmen) that EBC members would like to see translated into English and which appeared to have been omitted from the Cabinet office list (21 October, 2005)
  8. OECD visit for EBC briefing on FDI environment (8 November, 2005)
  9. The EBC was visited by Mr. Maurice Wagner, Director General, Eucomed. EUCOMED is actively seeking ways to further their lobbying of the Japanese government (MHLW) and is interested in extending the cooperation by entering some form of contract with the EBC. Hammering out the details in such a deal requires, however, delicate balancing as the EBC Medical Equipment committee is not enthusiastic about pro-active lobbying. The push from EUCOMED has been led primarily by the European subsidiaries of American companies. The EBC Medical Equipment committee wishes to be perceived as independent of American companies. The EBC Secretariat discussed collaboration on the understanding that the Director General (a European) and the executives of the European members of EUCOMED take the lead in their activities in Japan. M. Wagner requested the EBC to provide visit planning/organization services and liaison with the EBC Medical Equipment Committee for a fee. Details will be finalised in the new year. (9 December, 2005)
  10. The ETP Alumni association has approached the EBC to ask for assistance in running their organisation by providing space and manpower on a fee-charging basis. The fee will pay for a staff member who will work for the ETPA 2 days per week. An additional charge will be levied for the leasing of space, equipment facilities and so on. Having the group on site at the EBC office has the positive effect of utilizing synergies and promoting the EBC to ETP graduates, while ensuring that the interests of the national European chambers are not put at risk.

4. REPORT FROM THE POLICY DIRECTOR:
Report of recent committee-related and cross-cutting activities

  1. Article 821:
    The following meetings have been held: EBC 821Taskforce meeting (29 September); Joint EBC/ACCJ/ANZCCJ 821 Taskforce meeting (1 November), Joint EBC/ACCJ/ANZCCJ Taskforce meeting with MOJ (2 November), Joint EBC/ACCJ/ANZCCJ Taskforce conference call (24 November 24)
    * Comments from J-F Minier, EBC 821 taskforce leader
    At the meeting at the MOJ on November 2, little progress was made and it was apparent that the MOJ will not take the lead on obtaining an amendment. Director-General Terada indicated that a sympathetic politician should be encouraged by the joint team to take the lead to introduce a revision. The joint team will visit Senator Kotaro Tamura on December 15 and Lower House rep. Urushibara-sensei on December 16. If no satisfaction is obtained, the GATS will be revisited in terms of discrimination (on the issue of liability). The EBC has posted a survey on the website and is following up to get members to respond. This will be extended to the chambers in the new year.
  2. Triangular Merger Rules: The EBC and ACCJ have had intense discussions with the Ministry of
    Justice (MOJ) about the cabinet orders/rules they are drafting for the triangular merger scheme. Although the scheme itself was delayed by one year, the drafting of the rules was not. The Keidanren has exerted a powerful influence on the MOJ with the result that the scheme will likely only be used by foreign companies that are listed in Japan (less than 30). However, thanks to the intervention of METI, this process has now been delayed for one year also thereby allowing more time for interested parties to lobby.
  3. JIC Sub Committees: EFPIA and the EBC Medical Equipment committee are raising issues at the
    Healthcare Subcommittee of the JIC. EFPIA was invited to join by the EBC.
  4. Tax Reforms: It appears that there are moves to tighten various tax rules that affect foreign firms.
    The Tax committee is currently looking into these.
  5. Large Scale Retailing- New Developments: METI and MLIT are proposing limiting the size of
    tracts of land that can be used by large-scale retailers in regional cities. This would mean that large stores like Ikea, who currently are buying large plots of land or plan to do so, may not be able to build on them. This is a move to promote small-store business in the regional city centers. This will have the effect of stopping investors like Ikea from further investment. The EBC's Retail Committee has already held one meeting with the authorities on this matter.
  6. Nickel Tariffs: The Material Committee held 2 press conferences prior to the white paper launch
    and articles were published both before and after the launch in the relevant industry media. The articles provoked a public comment from a large Japanese firm that currently is protected by the tariffs. A. Murray thanked V. Trelut for his excellent leadership of this small and persevering committee.
  7. Liquor Tariffs (Wine): The EBC is looking into the situation surrounding liquor taxes that will
    likely have a negative impact on the sales of wine.

5. COMMENTS FROM COMMITTEE CHAIRMEN:
Comments from Committee Chairmen present

  1. R. Mason-Human Resources: Only 4 countries have bilateral pension agreements and this
    remains an issue for the committee. Next year there will be a focus on visa issues
  2. V. Trelut-Materials: So far, the committee has achieved good publicity but no more than that.
    The fact that a Japanese company reacted indicates that a problem exists.
  3. K-U Grathwohl-Animal Health: Labelling has become a problem for some firms as one
    authority revised the labeling requirements under the revised Pharmaceutical Affairs Law. When products with the new labels arrived at Narita Airport, officials representing a different authority impounded the revised product labelling did not meet that authority's requirements. The firms can make labels that allow the products to be sold or that allow the products to be imported, but not both - due to lack of coordination between different regulatory authorities with jurisdiction over the products.
  4. R. Kracklauer-Automotive Components: R. Kracklauer reported that one article appeared in the
    automotive news media after the white paper launch
  5. J-F Minier-Banking: The FSA needs to do more work on Article 65 (firewall restrictions)

6. 2006 FUNDING:

  1. Voting on budget presented at last meeting: All chambers accepted the budget, which means
    that the new stakeholder fees will come into effect. The annual fee will be separated into 3 installments as usual and the first will be sent out in December with a 1st-installment deadline of mid-January as usual.
  2. Other potential funding sources
    • Eurochambres - Market Report Updates: It is likely that EBC will be awarded a contract by
      Eurochambres to update several market reports as was the case in 2004. This will generate a modest income after costs. Details will finalised in the new year.
    • Eurochambres - ETP promotion: Eurochambres has won a contract from the European
      Commission to manage the ETP promotion program in 2006. EBC will receive a sub-contract from Eurochambres to recruit candidates in Japan. This will generate a modest income after costs. Details will finalised in the new year.
    • ETPA - representation/location: The ETP Alumni association has requested that the EBC house
      their organization and provide labour and services for a fee. Details are to be discussed.
    • Eucomed- visit program organization/liaison with EBC Medical Equipment Committee:
      Eucomed (European Medical Equipment Industry Association) has requested the EBC to provide visit planning/organization services and close liaison with the EBC Medical Equipment Committee for a fee. This will generate a modest income. Details will finalised in the new year.
    • "Crisis Management" consulting on individual company regulatory problems not addressed by the relevant EBC committee: The EBC is occasionally requested by non-members and also by members with highly company-specific problems to assist with regulatory and lobbying problems. The EBC could provide these services for a fee which could contribute to developing a little more stability in revenue. This idea will be discussed in more detail next year.

7. ELECTION of NEW EBC CHAIRMAN

  1. Report from Election Committee:
    Mr. Michel Lachaussee, Mr. Phil Gibb, Mr. Andre Zimmermann (absent):
    Three Stakeholders and one Chairman Representative did not submit a vote: (Italy, Iceland, Ireland, S. Ginoux)
    Two BoG members did not vote as their positions currently are vacant (both left Japan recently and have not been replaced)
    Therefore, fifteen of twenty-one eligible BoG members with voting rights cast their vote and the result was that Mr. Richard Collasse was elected unanimously with any "abstain" replies.
    Mr. Collasse was thanked for his four-year term and congratulated on his reelection

8. OTHER BUSINESS: 　

  1. Other business
  2. Reminder about December 13 evening cocktail party