In spite of their good relations, the EU and Japan are struggling to give substance to their partnership. Behind the smiles, handshakes and close administrative cooperation, political will seems to be lacking, a paradox in this age of globalisation. Indeed, the Japanese and the Europeans have a multitude of common interests and values to defend, both economic and strategic.

Heavyweights in the global economy, the EU and Japan together account for 40% of the planet’s GDP and 30% of world trade. The EU is the leading investor in Japan and Japan is number one in Europe in terms of foreign direct investment. Japan is one of the European Union’s declared ‘strategic partners’ (together with the United States, Russia, China, Canada, South Africa, Brazil and India).

Yearly summits have been held since 1991 as part of the EU-Japan bilateral dialogue. Since 2001, this dialogue has given way to a ten-year action plan, based on multiple meetings of sectoral and regional experts. In late February, French State Secretary for European Affairs Jean-Pierre Jouyet and his German counterpart, Günter Gloser, even made a joint visit to Tokyo to explain the originality and merits of Franco-German cooperation. Yet, a feeling of frustration prevails in Japanese political and economic spheres: the EU is seen as not following through on its discourse on the strategic alliance, keeping too much to itself and not behaving enough like an ally.

Examples given include the Union’s REACH legislation adopted in 2006 to improve the management of risks from chemicals and reduce harmful substances. The programme is applauded by Tokyo for its ambition. A senior official nonetheless points out that “the Europeans adopt standards for themselves, without providing for implementing arrangements by the EU’s partners. Our industries have ideas too and in the last 30 years have accumulated instructive experiences. The emerging economies, on the other hand, still have a long road ahead before they will be ready to adopt the economic standards and values of Europe’s liberal approach.”

At a deeper level, in the economic realm, Japan feels abandoned by Europe, whose Asian strategy now gives priority to the promising emerging powers, such as China, India and ASEAN, to the detriment of a Japanese market that has reached maturity. It is a sign of the times that EU Trade Commissioner Peter Mandelson is only now making his first visit to Japan since taking up office in 2005, while he regularly visits Beijing. This absence speaks volumes and does not go unnoticed in Tokyo. “Relations are almost too calm and do not offer an incentive to take things forward,” admits a Commission source.

On their side, the Europeans denounce the difficulties they experience securing access to the Japanese market, which is protected by regulations that often seem impenetrable to foreign companies. Peter Mandelson went back on the attack against barriers to European investments, in a speech in Tokyo on 21 April. He noted that in 2006, for every dollar invested by Japan in the EU, European firms had only been able to invest three cents in Japan. This imbalance is very telling and is likely to continue as long as real progress in regulatory cooperation is lacking. The issue of closer economic ties between the two powers remains sensitive as Japan seeks a cut in European tariffs for its industrial products. “We feel that there is a huge margin for progress that is not being exploited,” say sources in Tokyo.

The scope for progress is measurable. At strategic global level, the United States is Japan’s leading partner, just as it is the EU’s number one partner. The challenge for the EU and Japan is to reinforce the Euro-Asian side of the triangle and to build relations between them comparable to those they maintain with Washington.

EU-Japan economic cooperation could be strengthened with new projects. Dialogue could become more systematic on regional issues like China and Taiwan, Chinese military growth and the North Korean nuclear threat. These are key issues for Japan, which suspects the Europeans of being naive with regard to Beijing. Central Asia, the Middle East and Africa are also on the agenda. “And why not Chad,” a Japanese diplomat recently asked us in Tokyo.