EBC Meeting Minutes

EOB Meeting Notes

Tuesday, April 17, 2007; EBC Office, 08:30 a.m.-10:00 a.m.

      

Attendees: R. Collasse, A. Murray, J. Edberg, K. Harris, S. Mayo, D. Delgorge, P. Gibb, A. Groff, M. Loefflad, G. Keown, H. Tempel, M. Theoval, E. Ullner
Regrets: C. Eilersen, P. van Oppen, H. Porat
No Reply: V. di Bello, T. Strand

1. CHANGES IN EOB MEMBERSHIP and EXECUTIVE OFFICERS

The Chairman confirmed that Michel Lachaussee had now taken up the position of Chairman of the French Chamber of Commerce and Industry in Japan and been succeeded in the EBC EOB by Michel Theoval, present today. He also advised that Phil Gibb would shortly become the Vice Chair of the British Chamber of Commerce in Japan and would be replaced in the EOB by Peter Thewlis of Burberry. Finally, he advised that both Kathie Harris and Sarah Mayo, who have been employed part-time in the EBC Secretariat, were leaving Japan and thanked them for their work.

2. REPORT FROM THE CHAIRMAN

  1. The Chairman participated at the event organised by the German Embassy (on behalf of the German EU Presidency) to mark the 50th Anniversary of the signing of the Treaties of Rome on 25 March. Prime Minister Abe also attended and gave a short speech emphasising the importance of EU-Japan relations. However, there was relatively little press interest, possibly due to the earthquake that occurred that morning.

  2. The Chairman held a breakfast meeting on 27 March with Itaru Koeda, Co-Chairman of Nissan Motor Co Ltd and the new Japanese Co-Chair of Working Party 1 of the EU-Japan Business Dialogue Round Table (EUJBDRT). At the time, there was some discussion about how to handle the issue of triangular mergers in the Working Party report, although this has now been largely resolved by the publication of a Cabinet order, confirming that tax deferrals will be allowed in certain circumstances (see Section 5 below).

  3. The programme for the EUJBDRT on 3/4 June 2007 is finally taking a more satisfactory shape (copy of March 21 version distributed - a further update will be issued shortly). Working Parties will now have a chance to present their reports and recommendations, albeit the time allowed is much shorter than in previous years. The EBC Chairman has been invited to make the opening remarks to the session on "Competitive Challenges from Emerging Economies & Strengthening EU-Japan Economic Co-operation" rather than merely acting as moderator. Finally, the involvement of the German Industry organisation BDI, who are kindly hosting the event, has been adjusted such that their President will make a welcome speech in his capacity as Vice President of BusinessEurope, and hence the Round Table will continue to be positioned as an EU event and not a forum for individual Member States.

  4. The Chairman made a presentation on the work of the EBC to the Board of the Japan Ireland Economic Association on 11 April.

  5. The Chairman and Executive Director held a meeting with Yoichi Otabe, new Director General of the Economic Affairs Bureau in the Ministry of Foreign Affairs on 12 April.

  6. The next lunch meeting of the Investment Group will be hosted by the Ministry of Economy, Trade & Industry (METI) on 19 April.

  7.  The Chairman's presentation to the Board of the Danish Chamber of Commerce has been postponed until 25 May.

3. REPORT FROM THE EXECUTIVE DIRECTOR

  1. The Executive Director advised that there has been a change to the date of the June EOB meeting, which will now take place on 21 June (not 26 June). A revised programme of EOB meetings was distributed.

  2. Arrangements for the EOB meeting in Osaka on 22 May are being finalised and a programme was distributed. The Osaka Chamber of Commerce and Industry, who are hosting the day's events, are anxious to receive confirmation of the numbers of people attending, so EOB Members are requested to advise the EBC Secretariat as soon as possible whether or not they will attend.

  3. The Japan Times is once again planning to run a special European supplement in May, which will include a 700-1,000 word article by the EBC Chairman. The Secretariat has already contacted EBC stakeholders with details of how they can support this by buying advertising space.

  4. The Executive Director made a presentation about the EBC to the inaugural board meeting of the new Polish Chamber of Commerce and Industry in Tokyo on 29 March. The Chamber will be holding a launch party on 11 May, at which the EBC Chairman has been invited to make a speech. Since he is unable to attend in person, he will probably pre-record his contribution on video.

  5. The Executive Director and Policy Director held a meeting with the Nissan sherpa for the EUJBDRT Working Party 1 on 4 April, mainly on how to handle the triangular merger issue (see item 2b above).

  6. The Executive Director has had discussions this month with several potential candidates for the 2007-8 Executive Training Programme in Japan (ETP). However, while individuals are expressing strong interest in the programme, their expectations of getting the necessary support from their employing companies are quite low.

4. FUNDING AND FUND RAISING

The audit of the "EBC statement of cash balances and cash receipts and disbursements 2006" was carried out on 26 March (final copy distributed).

As indicated at the March 2007 EOB meeting, the EBC has started charging for work to fulfil ad hoc requests from non-EBC members needing assistance to identify and approach the relevant Japanese authorities concerning regulatory queries and problems. The Secretariat has drawn up a standard contract, which it issues prior to starting work, and charges for all work done, whether or not the company is ultimately successful in meeting its goals. The Secretariat is restricting this activity to requests for help that fall within its mandate, i.e. where trade-lobbying expertise is required. The EOB members indicated support for this activity.

5. REPORT FROM THE POLICY DIRECTOR

  • Banking / Asset Management: New Cabinet orders are due to be published today, clarifying the Financial Instruments and Securities Exchange Law. This issue is of critical importance to both the Banking and Asset Management Committees. It is expected that there will be a six-week period for public comments.

  • Banking: The Government-backed Study Groups examining how to make Tokyo the financial centre for Asia have delivered their reports and have, for the first time, made mention of the need to review current law that insists on the separation of banking and security activities within the same firm.

  • Insurance: The EBC Committee has been invited to make a fourth presentation to the Postal Insurance Privatisation Committee.

  • Human Resources: The EBC Committee is continuing to meet key politicians to make the case for abolition of the re-entry permit system for foreign residents.

  • Airlines: A newly formed Cabinet Office Committee is likely to recommend opening negotiations on an "open skies" agreements between Japan and countries in Asia. The EBC committee is working hard in trying to widen the scope of the debate also to new agreement between European Countries and Japan.

  • Triangular Mergers: The final Cabinet order was published last Friday (13 April), making clear that companies not listed in Japan may nevertheless participate in triangular mergers and benefit from tax deferral on stocks exchanged in the process, so long as they already have operations in Japan. While far from creating the ideal instrument for boosting FDI, the ruling is a significant improvement on the approach advocated by the Keidanren.

  • Bilateral Trade Agreements: METI is sending various signals saying that it is interested in opening discussions on a possible Economic Integration/Partnership Agreement between Japan and Europe. This is in line with comments that the EBC Chairman will be making at the EUJBDRT in June, urging Europe and Japan to reinvigorate mutual trade relations by working together on an agreement that would not simply aim at tariff reductions but tackle issues such as regulatory harmonisation and reciprocal acceptance of product standards. The Secretariat is working on a draft position paper on this.

  • Food: Duco Delgorge reported that there has been some progress on approval of flavour components and there is a possibility that one more additive on the Government's priority list will be approved before end 2007.

6. NORTH AMERICA - EUROPE GOLF CHALLENGE (DAIMLERCHRYSLER CUP)

Erik Ullner reported on preparations for the annual EU-US golf competition at Atsugi Kokusai on Friday 28 September. Discussions are underway with additional sponsors and online registrations will start in June.

Hans Tempel proposed that there should be an opportunity for participating companies to donate to charity - Erik Ullner agreed to investigate what would be possible.

7. ANY OTHER BUSINESS

  • Duco Delgorge drew attention to the latest event in the series on "Delighting Customers in Japan", organised by the Belgian-Luxembourg Chamber of Commerce in Japan, which will take place on 11 May. The speaker will be Dr Shigeaki Hinohara, Honorary President and Chairman of St Luke's International Hospital (cf e-mail sent by the EBC Secretariat on 16 April).

  • In the light of objections raised by the British Chamber to the EBC Retail Committee's plans to run a seminar (now cancelled) on "Retailing in Japan: Imaginary Barriers or Real Challenges", Phil Green clarified that the intention had not been to frustrate the work of the Committees, but to ensure that there is no conflict of interests.