（当館英訳）
WORLD OF DIPLOMACY (page12)
Interview with Mr.Toshimitsu Ishigure, Ambassador of Japan to Slovenia, by Dusan
Arzensek
»Huge potential for the enhancement of relations between Slovenia and Japan«
«Japan and EU are big economies«
Every morning I see the Japanese flag through my window as I drink coffee. Mr.
Toshimitsu Ishigure lives in the new residence of the Japanese Ambassador across the
street, while the Embassy of Japan is located in the TR3 building.
The European Commission asked EU governments on Wednesday for a mandate to
negotiate a free-trade deal with Japan, challenging strong resistance from carmakers in the
bloc who fear a surge in cheaper imports hitting their home markets.How do you see future
free trade arrangements beetwen EU and Japan?
Japan and the EU are major ecomonies with common values such as business based on fair
and open competition and rule of law. I believe that the Japan-EU Economic Partnership
Agreement (EPA) is extremely important for both Japan and the EU as it will provide »winwin« situation for both economies. With regards to the resistance from European carmakers, I
would like to underline that more than 70% of the Japanese cars sold in Europe are produced
in Europe. In July the Cabinet of the Government of Japan decided on a »Policy on
Regulatory and Institutional Reform« which fully addresses the EU's requests or concerns on
non-tariff measures in Japan, such as »Harmonization of automotive technical requirements
and certification procedures with international standards.« I sincerely hope that the EU will
take proper account of a great effort made by the Jaapnese side and do its utmost toward an
early launch of the Japan-EU EPA negotiations.
The euro fell to nearly 12-year lows against the yen and two-year lows against the
dollar.The yen tends to be bought when global uncertainty grows specialy in response to the
uncertain outlook of the U.S. economy.How do you see the developement of the futureworld
trade issuies?
There are many risks to the global economy, such as the European sovereign debt issue. In
today’s globally connected world, any kind of crisis in one country can easily proliferate
along supply chains and financial flows. Japan was the first to announce that it would
contribute US$60 billion to the IMF, and was followed by many other countries who made
commitments of their own, which lead to an agreement by the G-20 in June to increase the
resources available to the IMF by over $456 billion, in order to reduce risk and to build
resilient societies from a financial aspect.
Japan states that deliberations have begun in the upper house on tax and social security
reform bills.Can you tell us a little more about these reforms?
The declining birthrate and aging of society are advancing in Japan at an unprecedented
speed, one of the fastest in the world. As a result, social security costs continue to swell by
around ten billion euro every year. On the other hand Japan’s long-term debt balance is the
highest in the world. In order to maintain our stable lives we cannot afford to lose Japan’s
credibility. Therefore it is critical that we start taking steps from now to both secure stable
financial resources for social security and restore fiscal health.
Japan’s debate over nuclear power has become increasingly heated after incumbent Prime
Minister Yoshihiko Noda’s decision to restart idled reactors despite persistent public safety
concerns following last year’s Fukushima nuclear crisis.How Japan will solve its energy
future?
The basic direction shared among the people in Japan is conversion of energy structures
towards the reduction in dependence on nuclear energy. In choosing energy options, however,
we have to take into account such controversial issues as energy security, alternative energy
sources, overall costs involved and solution of global warning. Based on outcome of the
national discussions in this summer we are now formulating a New Strategic Energy Plan.
This year is the 40th anniversary of the normalization of diplomatic relations between
Japan and China. In order to enhance exchanges and promote the mutual understanding
between the peoples of Japan and China, the leaders of both countries agreed to designate
this year as 2012: "Friendship Year for Japan-China People-To-People Exchanges", and
both the public and private sectors in Japan and China are organizing a series of events to
mark the anniversary.Can you give us a short rewiev about your relations with China? Also,
please touch upon the recent dispute related to Senkaku Islands.
For Japan, China has been and will be the biggest neighbour. Development of China provides
opportunities for Japan. Trade between Japan and China has grown rapidly, and now China is
the #1 trading partner for Japan. As great economic powers, both Japan and China must play
their roles for the stability and prosperities in the Asia-Pacific region and the world. Japan
would like to deepen further the Mutuall Beneficial Relationship based on Common Strategic
Intrest.
With regards to the Senkaku Islands, the Senkaku Islands are inherently, in terms of
international law and historical facts, Japanese territories. There are no territorial disputes to
be settled between Japan and other parties. It was not until the latter half of 1970, when the
question of the development of petroleum resources in the East China Sea came to the
surface, that the Government of China and Taiwan authorities began to raise questions
regarding the Senkaku Islands.
What about the recent dispute between Japan and South Korea around Takeshima?
In light of the historical facts and based upon international law, Takeshima is an integral and
inherent part of Japanese territory. Japan officially prersented the Republic of Korea with a
diplomatic proposal to institute proceedings before the International Court of Justice(ICJ) to
settle the territorial dispute in a calm, fair and peaceful way based on international law.
Let us leave international circle and try to see your opinion on current slovenian main
economical chalenges. Do you see any possibilities to get new japanese investors to our
country?
Slovenia has a lot of potential for the Japanese investors. More efforts are needed from both
Japanese and Slovenian sides to inform Japanese investors of Slovenia's strenghth such as
quality workforce with high level of educational background and foreign language proficiency
as well as advantages in niche fields such as IT, electrical devices and automotive parts.
JAPTI and my Embassy will organize Slovenian Business Seminar in Duesseldorf on 25
September to introduce Japanese companies Slovenia's business environment including
success stories of Japanese companies in Slovenia. On the other hand, Slovenia have to show
that it really welcomes FDIs. Japanese companies are performing globally based on the
principles of market economy. We regret the slow pace of labour market reform and some
negative aspects for FDIs in Slovenia. I expect both public and private sectors in Slovenia to
have more global perspectives.
Which industries in Slovenia do you see as prosperus here? Do you see here any special
Japan - Slovenia development possibilities?
The opportunities lie in niche fields such as IT and small and medium sized
enterprises(SMEs). Slovenian companies such as xlab, Robotina and Inea have shown great
success in their business with Japan. It is also welcome that the cooperation in the science and
technology is developing between Japanese New Energy and Industrial Technology
Development Organizations(NEDO) and Slovenian Technology Agency(TIA).
Mr Ambassador, you are here now from February 2011, how do you and your wife see
Slovenia and the life here?
Since my arrival in Ljubljana I and my wife have been fascinated by the beauty of nature in
Slovenia. I have traveled to almost all regeons in the country and found the varieties and
diversities of Slovenia. I welcome that the number of Japanese tourists to Slovenia is growing.
Both Japanese and Slovenes are lovers of nature. This year we celebrate the 20th anniversary
of the establishment of diplomatic relations between Japan and Slovenia. I would like more
young Japanese to visit Slovenia and meet young Slovenians as they are the future for further
promotion of friendship of the two countries.
ECONOMIC RELATIONS BETWEEN JAPAN AND SLOVENIA (page 13)
It is considered common knowledge that Japan, while facing its share of problems and
challenges in a number of fields, is the world's third largest economy, which in 2011
generated an annual gross domestic product of over 4,500 billion euro, which remains one of
the world's top exporters, importers and foreign investors, and which, apart from having a
powerful and highly-developed service sector, has long been among the global industrial
leaders, most notably in the field of manufacturing electronic goods, motor vehicles and other
transport equipment, as well as machinery, chemicals and metals. Today, Japan is also a
leading developer of the most advanced solutions in robotics, hybrid vehicles, optical
equipment, bio- and nanotechnology as well as renewable energy production.
When it comes to business ties with Europe, Japan is the EU's second main trade partner in
Asia and the sixth main partner overall. In 2011, total EU exports to Japan reached a value of
49 billion euro while imports from Japan accounted for over 67 billion euro. Japan is also a
major investor in the EU, as its FDI stock in the EU amounted to over 129 billion euro in
2010.
All of these encouraging facts, however, have so far not been appropriately reflected in the
economic relations between Japan and Slovenia, which can best be described with a phrase
'plenty of unused potential'. On both sides, that is.
Last year, from Slovenia's perspective, Japan was only the 51st export destination with
exports totalling 28 million euro, and the 36th trade partner when it comes to imports which
amounted to 54 million euro. Evidently, just like the EU as a whole, Slovenia recorded a
significant trade deficit with Japan. As regards the structure of bilateral trade, what Slovenia
has been selling to Japan are mainly car parts and other transport equipment, pharmaceutical
products, organic compunds, electronic goods, machinery and tools, and sports equipment.
Meanwhile, imports from Japan have mainly consisted of cars and other motor vehicles,
which represent over 50% of the total, but also of various cchemical products, mmachinery,
electronic goods, non-ferrous metals and ooptical instruments.
The stock value of Japan's FDI in Slovenia also stood at a very modest 30 million euro at the
end of 2010, making Japan the 18th main investor in Slovenia and accounting for less than
half percent of the total.
Nevertheless, things have been looking up recently, as the figures have been on the rise again
after the drops inflicted by the global financial-economic crisis. It is also worth pointing out
that plain statistics can sometimes be deceiving; namely, numeorus relevant business ties exist
which do not appear in data tables, especially as Japanese products are often imported to
Slovenia through other EU countries while Slovenian products are exported to Japan same
way as well. The same also goes for the field of investment.
Speaking of the reasons for optimism, there are stories of success in bilateral business
relations which the general public, be it Slovenian or Japanese, may not be well aware of. To
higlight the most outstanding examples, Slovenian technology is commonly used in the
process of manufacturing Japanese cars, while Slovenia uses Japanese technology in energy
production, for example when constructing the Avče Pumped Storage Power Plant on Soča
river and upgrading the Krško Nuclear Power Plant. Generally, cooperation has been
successful in a number of niche fields, such as information technology, automotive parts,
exhaust pipes, robotics, electronic devices, e-signature or furniture.
Knowing all that, the obvious question occurs: what to do in order to tap into the
aforementioned unused potential? How to further deepen the Japan-Slovenia economic ties?
The fact is that it definitely can be done, because the need for cooperation exists in many
various fields and fresh opportunities are needed, and the fact is that it should be done,
regardless of or even more so because of the economic difficulties that both countries deal
with. Here, the Japanese side has already made certain noteworthy suggestions based on what
it learnt from the exsistent cases elsewhere in the Central and Eastern Europe, where as many
as some 250 Japanese manufacturing affiliates now operate and where the number of newlyestablished Japanese affiliates sometimes exceeds that in the Western Europe. For example,
the Czech Republic is the 4th and Poland the 5th main destination country for the Japanese
outward investment, trailing only behind the UK, Germany and France.
First of all, according to the Japanese sources, Slovenia needs to be aware of and has to
further promote certain strengths and comparative advantages that speak in its favour,
especially the well-educated, quality workforce which is always in high demand, no matter
how high the unemployment rate. Slovenia also enjoys a high quality of life and offers a safe
and healthy environment, as well as represents a link between the Western Balkans and the
rest of Europe.
However, in order to become a more attractive partner for Japan and possibly other countries
as well, Slovenia should work on some of the basic conditions for doing business and for
promoting itself as an FDI destination, and should carry out an overhaul of its business
environment. More specifically, the rigid labour market, long and intricate administrative
procedures, unstimulating tax system and partly outdated logistic infrastructure would all
benefit from improvement.
When it comes to Japan explicitly, getting to know the business and general mentality of the
nation is also a key to successful business. It needs to be emphasized that Japanese companies
are very service-oriented and that mutual trust is extremely important and highly respected. In
Japan, the phrase ‘time is money’ is taken very seriously and meeting all the commitments on
time is crucial. The Japanese also pay special attention to quality of products and services,
therefore company managements tend to consult technical experts and take their opinion into
consideration before making any important business decisions. In order to attract interest of
possible Japanese business partners, proactive approach is needed and positive references
from other Japanese or esteemed global companies are precious. Last but not least in this
regard, it is no secret that it often takes a lot of time and effort to start a business relationship
with the Japanese, however, once they have been established, these relationships are usually
firm, lasting and fruitful.
Furthermore, what promises to have a serious positive effect on the future economic relations
between Japan and Slovenia as a member of the EU is the fact that the Union and Japan are
soon to enter negotiations on concluding the bilateral Economic Partnership
Agreement(EPA), a free-trade deal whose key goal is to promote trade and investment ties
and boost the economic growth on both sides through liberalizing the trade in goods,
addressing non-tariff measures, promoting the sharing of technologies and knowledge,
expanding opportunities for the European companies to invest in Japan and export their
services, promoting the protection of geographical indications of European products in Japan
etc. The expected impact of the EPA is major, as the agreement is estimated to significantly
increase the EU’s as well as Japan’s GDP while also creating several hundred thousand new
jobs on both sides. For sure, conclusion on the Japan-EU EPA would bring a “win-win”
situation for both Japanese and Slovenian economies.
This year marks the 20th anniversary of the establishment of diplomatic relation between
Japan and Slovenia. This is an opportunity to enhance further the economic relations between
the two countries. In February, Slovenian advanced technology companies made presentations
in Tokyo. In May, Slovenian car parts makers joined Automotive Engineering Exposition in
Japan. In May and June, Slovenian logistic companies went to Japan to meet their existant and
potential partners. Japanese New Energy and Industrial Technology Development
Organization (NEDO) came to Slovenia in June and met its counterpart Slovenian
Technology Agency (TIA) to develop technology cooperation. Following a Forum on how to
do successful business with Japan held in June in Slovenia, the Public Agency of the Republic
of Slovenia for Entrepreneurship and Foreign Investments (JAPTI) will organize, in
corporation with the Embassy of Japan in Ljubljana and the Japan External Trade
Organization (JETRO), a presentation of the Slovenian investment environment in Dusseldorf
for the Japanese business community on 25 September 2012.