Ambition and comprehensiveness: Making the FTA a success Hearing on the Role of Civil Society in the EU-Japan FTA: European Stakeholders' Perspectives Brussels, 15 January 2014 Erik Bergelin Chairman BUSINESSEUROPE Japan network 15 January 2014

Why an FTA? Japan: EU’s 7th largest trading partner EU: Japan’s 3rd largest trade partner Similar approaches towards business Close political allies But as well: Both sides trading below their possibilities Japan continues to be considered as a closed and very challenging market 15 January 2014

What are the major challenges? Regulatory divergence and non-tariff barriers (different product standards, double-testing requirements, etc.) Obstacles to investment (e.g. limitations of foreign participation in services) Restricted access to procurement Some doubts if regulatory reform can be really achieved  EU review clause after one year. Strong local traditions in the Japanese business environment 15 January 2014

Why did bilateral dialogues not deliver? Lack of political will and leadership Strong role of individual ministries and regulatory bodies, showing little willingness to change Disagreements over technical details in specific areas Focus on emerging markets by both the EU and Japan, and correspondingly a lack of mutual interest 15 January 2014

What must be the focus of the FTA? Not just paper concessions but specific, substantive, measurable, and non-discriminatory market access commitments Elimination of non-tariff barriers Removal of obstacles particularly in the areas of services, investment, competition and IPR Comparable and effective market access in public procurement Parallelism between tariff reductions and elimination of NTBs 15 January 2014

What do we want to achieve? Trade negotiations should be conducted in transparent manner and close cooperation with civil society Comprehensive and ambitious agreement with the resolution of all issues of significant economic interest to either party Close alignment between EU-Japan FTA, TTIP and TPP – for instance on standards and conformity assessment 15 January 2014

Thank you!