A joint symposium from the DGAP and the Japan Economic Foundation (JEF) examines the opportunities for cooperation
Advantages and Disadvantages of a Free Trade Agreement
The European Union and Japan are connected through intensive trade. But the symposium made clear that the full potential for cooperation between the two countries has not yet been utilized. Japan has thus put forward an ambitious agreement that encompasses areas that go beyond just trade and investment. The EU Commission recently submitted a study examining the feasibility of a bilateral free trade agreement.
There are however some reservations regarding such an agreement. Critics point to the highly insular Japanese economy with its high non-tariff barriers. The participants of the symposium discussed the steps Tokyo could take to convince the Europeans to move toward negotiations.
Cooperation on the Energy Supply of the Future
The Fukushima nuclear reactor disaster initiated a debate on energy security and future energy supplies in both countries. Until now, Japan has regarded nuclear energy as an essential source of energy because the country has very limited resources that can be used as an energy source.
Nuclear energy could thus be a suitable complement to renewable energy and act as a central building block for energy security. In contrast, Germany has decided to abandon all nuclear power by 2022.
In the symposium discussion, the Fukushima disaster was regarded by both Germany and Japan as a historic opportunity to work more closely together on renewable energy. A concrete common plan could provide new impetus for such cooperation.
Fighting Climate Change Together
Both sides are interested in making progress on climate change policy. The 2°C target that was agreed to at the 2010 UN Climate Change Summit in Cancun is especially important to keep in mind for both Germany and Japan.
The Kyoto Protocol is no longer seen as an effective means to meet these targets. The participants were convinced that a worldwide emissions trading scheme should be developed instead of merely adhering to previous reduction goals. Every significant producer of CO2 emissions, including the largest rising economies, would have to be bound to this system in order for it to function effectively. In addition to contractual agreements, technological progress will also contribute a great deal to climate protection.